Real Estate Agency Commission in the Republic of Croatia – When Does It NOT Have to Be Paid?
Povrat troškova obrade kredita u Republici Hrvatskoj – pravna zaštita potrošača
24/01/2026
Unlawful Loan Processing Fees – You May Be Entitled to a Refund
A large number of citizens in the Republic of Croatia paid so-called loan processing fees when concluding loan agreements, often without clear and understandable information as to what these fees actually covered. Court practice in Croatia and the European Union shows that such contractual provisions are in many cases unfair and null and void, giving consumers the right to a refund of unlawfully charged loan processing fees together with statutory default interest.
What Are Loan Processing Fees?
A loan processing fee is an amount charged by a bank upon granting a loan, most often:
- as a percentage of the loan amount
- or as a fixed monetary amount
The issue arises when the bank fails to clearly specify which concrete services the fee covers or how the amount was calculated. Croatian courts increasingly find such contractual clauses to be unfair.
Case Law and the Position of Croatian Courts
According to established case law:
- banks must provide consumers with clear, accurate, and comprehensible information
- loan processing fees must be transparent and properly explained
- lump-sum fees without genuine consideration may constitute a violation of consumer rights
If a court determines that a loan processing fee clause is unfair, it is deemed null and void from the outset, and the consumer is entitled to a full refund of the paid amount together with statutory interest.
Who Is Entitled to Claim a Refund of Loan Processing Fees?
The right to claim a refund applies to:
- borrowers of mortgage loans
- borrowers of cash and consumer loans
- consumers who had loans denominated in HRK, EUR, or with a currency clause
- individuals who have fully repaid their loans
Full repayment of the loan does not exclude the right to initiate court proceedings.
Limitation Periods – The Importance of Acting in Due Time
One of the key legal issues in these cases is the statute of limitations. Limitation periods depend on the circumstances of each individual case and on the development of case law, which is why it is important to assess in a timely manner whether judicial protection is still available.
Failure to act in time may result in the loss of the right to claim a refund.
What Does the Loan Processing Fee Refund Procedure Involve?
The procedure generally includes:
- analysis of the loan agreement
- assessment of the unfairness of contractual clauses
- calculation of the claimed amount and interest
- initiation of court proceedings against the bank
- representation of the client until final resolution of the case
Each case requires an individual legal approach, taking into account the specific documentation and relevant case law.
Why Is Professional Legal Representation Important?
Disputes against banks and financial institutions require:
- thorough knowledge of consumer protection law
- continuous monitoring of case law of Croatian courts and the Court of Justice of the EU
- proper formulation of claims and timely procedural actions
Improperly conducted proceedings may lead to the dismissal of a claim, regardless of its substantive merits.
Legal Representation in Loan Processing Fee Refund Proceedings
In proceedings concerning the refund of loan processing fees, the following is provided:
- legal analysis of contractual documentation
- assessment of the legal basis of the claim
- representation before competent courts in the Republic of Croatia
- protection of consumer rights throughout the entire procedure
If a loan processing fee was charged without a clear and transparent explanation at the time of concluding the loan agreement, there may be grounds for a court claim seeking a refund.
Do you have any more questions?
A representative from our office will get back to you as soon as possible.
- 091 520 0264
- andrej@odvjetnikbasovic.hr