ABN AMRO’s method of calculating penalty interest works to the client’s advantage

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ABN AMRO charges its clients the lowest penalty interest for early repayment on their mortgages. Despite claims to the contrary in the 12 September 2016 episode of the Dutch television programme Radar, ABN AMRO does not charge its clients an excessive penalty interest.

ABN AMRO also believes that the information that it provides to its clients offers an accurate and clear explanation of what the fee for early repayment is and what costs it covers. Further information, as well as examples of how the fee is calculated, can be found in the terms and conditions and on the bank’s website.

The fee that ABN AMRO charges for early repayment is not, as was claimed in Radar, based on a lower reference rate that works to the client’s disadvantage. On the contrary: ABN AMRO calculates the fee using the ‘next best interest rate’, which in fact benefits the client. As a result, clients pay a lower fee than was claimed in Radar.

Another claim made in Radar was that the Code of Conduct for Mortgage Loans (Gedragscode Hypothecaire Financiering) contains unlawful arrangements between banks. That is untrue. This Code of Conduct, which is available to the general public, was drawn up by mortgage lenders (banks and insurance companies) with the knowledge of the Netherlands Authority for the Financial Markets and the Dutch Ministry of Finance.


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