Glatzová & Co. Represents Komerční banka in a Dispute Over the Costs of Early Mortgage Repayment

Glatzová & Co. is representing Komerční banka, a.s. in judicial administrative proceedings seeking to overturn a Czech National Bank decision imposing a fine for an alleged breach of law related to the early repayment of consumer housing loans with fixed interest rates. The core issue in dispute is whether, prior to the amendment of the Consumer Credit Act, a lender’s unrecoverable funding costs—from the date of early repayment until the end of the agreed fixed-rate period—should have been treated as “reasonably incurred expenses” in connection with the early repayment of fixed-rate mortgages. The matter is being led by partner Libor Němec, with the support of attorney Radek Šendera. Commenting on the latest development, Libor Němec stated: “The Supreme Administrative Court upheld our cassation complaint and annulled, as unlawful, the Prague Municipal Court’s decision dismissing our administrative action—primarily due to the court’s failure to provide sufficient reasoning. The case will now return to the Prague Municipal Court, which will deal with again the matter in light of our detailed arguments.”