Can The Expertise Fee Paid For A Rejected Loan Application Be Refunded?
It is common knowledge that loans, one of the most widely used borrowing instruments today, involve certain fees charged by credit institutions to consumers, both for the use of the loan and for certain items unrelated to the loan itself. In this context, there are significant disputes between banks and consumers, particularly regarding the real estate appraisal report (expert fee) in mortgage loans.
In this article, we will first examine the legal basis for appraisal fees, and then assess whether these fees can be collected even if the loan is not approved despite a positive report.
Article 6 of the Regulation on Procedures and Principles Regarding Fees Collected from Financial Consumers;
Classification of Fees
ARTICLE 6 – (1) Products or services that may be charged by institutions are classified in Annex 1. This classification is made by the Associations, taking into account the financial nature of the transactions, with the approval of the Authority. No fees may be charged for any product or service not specified in this Regulation or its annexes.”
The expert fee is specified in Article 1.2 of Annex 1 referred to in the article. The same regulation also states in Article 10: “In transactions related to movable and immovable property, such as pledges, mortgages, and expert appraisals, only fees paid to third parties may be collected.” According to these provisions, the expert fee is among the fees that may be collected from the consumer.
The legal dispute arises when the bank withdraws from granting the loan after the appraisal report yields a positive result. In such a case, it is important to determine whether the customer has the right to request the refund of the fees and expenses paid to the appraisal firm if the bank withdraws from the loan due to a reason not attributable to the customer after initially approving the loan based on the appraisal report. There is no provision in the Housing Finance Agreement regarding what happens to the appraisal fee if the loan is not approved.
The only provision in the legislation on this matter is found in Article 10, Paragraph 3 of the Regulation on Procedures and Principles Regarding Fees to be Collected from Financial Consumers:
“(3) No fees may be collected for rejected loan applications, except for fees paid to public institutions and organizations or third parties.” The law explicitly excludes fees paid to third parties in the case of rejected loans. The meaning of this provision implies that only fees paid to a public institution or third party may be collected in the case of rejected loans. Therefore, even if the loan is rejected, the expert fee paid to the credit assessment institution, which is a third party, may be collected from the customer. For this reason, it is concluded that there is no need for a refund.
However, banks request an expert report from consumers without obtaining any documents (credit agreement and pre-contract information form not signed) in terms of financial status and creditworthiness prior to the use of credit, and pass this fee directly on to the customer.
The expert report was prepared favorably, but the bank refused to approve the loan, suspecting that the customer had engaged in a fictitious transaction, which was deemed contrary to bank principles. In this case, the expert fee collected by the bank from the customer would constitute an unjustified fee and must be refunded.
As follows: The Supreme Court has established in its settled case law that the collection of expert report fees from consumers is subject to the condition that the expense is mandatory and documented.
Supreme Court Decision No. 2014/12670 K. 2014/12700 “Although the expert report on which the court based its decision did not include any documentary evidence regarding the amount paid by the defendant bank to the appraisal company for the appraisal, the defendant bank accepted that the expert appraisal fee of 400,00 TL as an expert fee was accepted as a mandatory expense, it is understood that no documentary evidence regarding the amount paid by the defendant bank to an appraisal company or any other third-party firm for the expert examination was submitted to the file. Therefore, the expert fee should be refunded in full, but the decision to refund only part of it is contrary to procedure and law and requires reversal. For this reason, it is possible to collect the expert fee from the consumer, but this must be clearly documented.
In conclusion, the collection of the expert fee from financial consumers is legally possible, but this must be clearly documented item by item. Even if the loan is rejected for a valid reason, the expert fee may be collected as it constitutes a mandatory payment to a third party. However, if the bank rejects the loan application without providing any justification, does not have the customer sign any documents regarding this matter, and does not provide any documentation regarding the expenses incurred, the collection of the appraisal fee is not possible. In such cases, it will be necessary to apply to the Consumer Arbitration Boards to request the refund of the relevant amount.
Year: 2025
Application: Can The Expertise Fee Paid For A Rejected Loan Application Be Refunded?
Lawyers: Mehmet Said Sarıbaş & Bilal Akbaba
E-mail: info@saribasakbaba.av.tr
Website: saribasakbaba.av.tr
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