Dutch banks are now banned from fining mortgage holders who pay off their mortgage more quickly than agreed, the AD said on Monday.
New EU rules allow banks to only charge a fee for the direct costs which result from early repayment, the paper said.
Nearly all mortgage contracts in the Netherlands include a clause allowing banks to fine home owners if they pay off more than 10% or 20% of the their loan within one year.
The Dutch banking association NVB told the paper that Dutch legislation currently gives sufficient protection to consumers and says that most people can pay off their mortgage more quickly without a fine.
But Nico Stolwijk of home owners’ lobby group Vereniging Eigen Huis describes the ban on large fines as a bonus and is now looking into how the banks are implementing the rules.
‘After all, how does a bank show that it is only passing on the direct costs?’ Stolwijk said.
Christian Democrat MPs have also called on ministers to investigate how banks are complying with the new rules.
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