Paying off an easyCredit loan or Ratenkauf early

easyCredit is run by TeamBank AG in Nuremberg, and three products carry the name, each with its own rules for paying early. Which one you have, and its annual percentage rate, is in your contract documents. easyCredit’s help pages are in German, so the German names and menu labels appear here as easyCredit uses them.

Three products under the easyCredit name

Sofortkredit mit finanziellem Spielraum

A TeamBank loan with a fixed rate and equal monthly payments, managed in the easyCredit+ app or the customer portal (Kundenportal).

easyCredit-Ratenkauf

Instalments on a purchase, online or in a shop. The contract runs through the retailer, the instalments go to TeamBank.

easyCredit-Rechnung

Pay by invoice, with no instalments and no extra cost. Paying early by bank transfer is free of fees.

Produktinformationen, easyCrediteasyCredit’s product information for the loan, in German. The table “Produktinformationen zum easyCredit im Detail” lists the rate fixed for the whole term, the equal monthly payments, and both payment changes (Ratenanpassungen) and extra repayments (Sondertilgungen) as free at any time. TeamBank AG is named as the provider below it.

easyCredit-Rechnung, easyCrediteasyCredit’s page on paying by invoice, in German. The table “easyCredit-Rechnung auf einen Blick” lists early payment by transfer as free of fees, and the FAQ on early payment says from when it works and to which account.

Extra payments on the loan: free, as often as you like

For the Sofortkredit, easyCredit states that extra repayments (Sondertilgungen) are free at any time and as often as you like, with no early repayment compensation (Vorfälligkeitsentschädigung). Each one has to reach a minimum, given on the Sondertilgung help page. For a smaller amount you can raise the monthly payment instead, which the product information also lists as free at any time.

Then you choose: lower payments over the same term, or the same payments over a shorter term. The rate stays the same, but interest runs on a smaller balance and falls. The shorter term saves more and moves the end date forward. The lower payment gives you room each month and leaves the end date where it was.

• Open the easyCredit+ app and log in. The customer portal works the same way.
• On the start screen, pick the loan the payment is for.
• Scroll to “Mehr Geld zur Verfügung?” (more money available?) and choose “Sondertilgung”.
• Enter the amount and tap “Neuen Ratenplan berechnen” (calculate new payment plan).
• Choose lower payments or a shorter term.

Sondertilgungen bei easyCredit, easyCrediteasyCredit’s help page on extra repayments, in German. The section “Sondertilgungen bei easyCredit” covers the free extra repayment without compensation, the minimum amount and the choice between lower payments and a shorter term, and the section after it lists the steps in the app.

Sondertilgung bei Krediten, easyCrediteasyCredit’s explainer on extra repayments, in German. The section “Sondertilgung, Zinsen und Zinssatz” says the rate stays the same while the interest falls because it is charged on the balance, and the section on shortening the term or lowering the payment compares both and calls the shorter term usually the cheaper one.

Paying the loan off in full

To clear the Sofortkredit you need the payoff amount (Ablösebetrag) for a chosen day. The balance “Noch zu zahlender Betrag” in the easyCredit+ app is the wrong figure, because easyCredit says it includes the interest up to the last instalment. When you pay early, § 501 of the German Civil Code (BGB) cuts the total cost by the interest and charges for the time that falls away.

• Log in to the easyCredit+ app or the customer portal.
• Under “Produkte”, pick the loan you want to pay off.
• Tap “Dokumente anfordern” (request documents), then “Ablösebetrag”.
• Enter the day you want to pay off on.
• The generated document states the payoff amount for that day and the rest of the payoff details.

The payoff statement is free in the easyCredit+ app. By post, email or phone it costs a fee from the price list (Preis- und Leistungsverzeichnis), collected with the next instalment. On the phone itself easyCredit does not give out the amount, for data protection reasons.

easyCredit says it charges no early repayment compensation and no extra processing fees on the Sofortkredit. The right itself comes from § 500(2) BGB: you may settle a consumer credit agreement early at any time, in part or in full.

Kredit von easyCredit ablösen, easyCrediteasyCredit’s help page on paying off the loan, in German. The section “So lösen Sie Ihren easyCredit ab” lists the steps through “Dokumente anfordern” and “Ablösebetrag”, the payoff date you enter and the document that states the amount for that day and the rest of the payoff details.

Häufige Fragen zu Ihrem laufenden Kredit, easyCrediteasyCredit’s FAQ for running loans, in German. The answer on the current balance says “Noch zu zahlender Betrag” includes the interest still to come, the answer on the payoff amount says it is not given out on the phone, and the answer on extra repayments calls them free as a rule and possible as often as you like.

Preis- und Leistungsverzeichnis, easyCrediteasyCredit’s price list, in German. Under “Serviceleistungen” the payoff statement is free through the app and has a price when requested in writing or by phone; the line “Mahnung” gives the fee per reminder, and the note at the bottom says service fees are collected with the next instalment.

Vorfälligkeitsentschädigung, easyCrediteasyCredit’s explainer on early repayment compensation, in German. The section “easyCredit immer ohne Vorfälligkeitsentschädigung” states that easyCredit charges neither compensation nor extra processing fees on the Sofortkredit.

Ihre Vertragsunterlagen bei easyCredit, easyCrediteasyCredit’s help page on contract documents, in German. It shows the way through “Mitteilungen” to the message titled “Kreditvertrag” and its PDF attachment.

§ 500 BGB, Gesetze im InternetThe official German wording on termination and early repayment. Paragraph 2 sentence 1 carries the right to settle a consumer credit agreement early, in part or in full.

§ 501 BGB, Gesetze im InternetThe official German wording on the cost reduction. Under paragraph 1 the total cost falls by the interest and charges for the remaining term when you repay early.

§ 502 BGB, Gesetze im InternetThe official German wording on compensation for early repayment. The ceilings for general consumer loans are in paragraph 3.

On a Ratenkauf the instalment drops first

The easyCredit-Ratenkauf has rules of its own. The agreement is with the retailer, who assigns the claim to TeamBank under a factoring agreement. So a payment only counts when it goes to TeamBank, not to the shop. Until everything is paid, the goods remain the retailer’s property.

Paying early costs nothing here either: easyCredit lists early repayment as free of fees and extra repayments as always free, and you can pay off at any time without notice. In German law the right comes from § 500(2) BGB, which § 506 BGB applies to instalment purchases that carry interest, such as this one.

What differs is the effect of an extra payment. It lowers the monthly instalment automatically and the term stays. The term only gets shorter if you ask for it explicitly, or when the instalment would otherwise fall below the minimum easyCredit names in its FAQ. Raising the instalment is not possible on a Ratenkauf.

Your Ratenkauf and its documents are in the customer portal, with the login details from the purchase. Within the withdrawal period you can also withdraw from the instalment agreement alone, and easyCredit then collects the purchase price in one payment.

Kundenvorteile easyCredit-Ratenkauf, easyCrediteasyCredit’s Ratenkauf overview, in German. Under “Top-Vorteile” early repayment and a payment pause are free of fees. The table “Alles Wissenswerte auf einen Blick” gives, under “Sondertilgung”, the automatic instalment reduction and the shorter term on explicit request, under “Ablösebetrag” payoff at any time, free and without notice periods, and under “Ratenerhöhung” that no increase is possible; the list below it sets out the conditions for changing the plan.

FAQ on extra repayments on the Ratenkauf, easyCrediteasyCredit’s Ratenkauf FAQ, in German. The answer on extra repayments during the term says they are free at any time, lower the monthly instalment automatically, and shorten the term once the minimum instalment is reached.

FAQ on the Ratenkauf customer portal, easyCrediteasyCredit’s Ratenkauf FAQ, in German. The answer on the customer portal says the login details come with the completed purchase and that the portal holds your instalment plans and all their documents.

Supplementary terms for the easyCredit-Ratenkauf, easyCreditThe supplementary terms retailers use for the Ratenkauf, in German. Section 2 covers the contract with the retailer, the assignment to TeamBank, payment only to TeamBank and the retention of title, section 3 the direct debit, returned debits, reminders and returns, and section 4 disputes about the goods.

Widerruf bei easyCredit, easyCrediteasyCredit’s page on withdrawal, in German. The notice “Sie wollen einen Widerruf einlegen?” says under “Folgen des Widerrufs” that after withdrawing from the instalment agreement alone, the purchase price is collected in one payment.

§ 506 BGB, Gesetze im InternetThe official German wording on deferred payment and other financial accommodation. Paragraph 1 applies §§ 491a to 502, among others, to financial accommodation that carries a charge, and paragraph 3 names instalment purchases.

When the money for an instalment is short

On the Sofortkredit you can lower the payment in the easyCredit+ app or pause single payments, without giving a reason. There is no fee, but the term gets longer and you pay more interest overall, and easyCredit shows both before you confirm. The Ratenkauf has its own options, with conditions listed on its overview page.

A payment pause carries no fee, a reminder does. If an instalment stays unpaid anyway, this is what follows.

• On the Sofortkredit, each reminder costs a fee, set out in the price list.
• On the Ratenkauf, a direct debit returned for lack of funds puts you in default even without a reminder, under the supplementary terms, and TeamBank can pass on what its bank charges for the return.
• In default on a Ratenkauf, TeamBank may charge a reminder fee or default interest for each reminder.

Ratenpause und Ratenreduzierung, easyCrediteasyCredit’s help page on pausing and lowering payments, in German. It lists the steps in the easyCredit+ app, and the answer on fees says payment relief is free while the total cost rises, with the longer term and the extra interest shown before you confirm.

When a counselling service is the better call

DebtAway answers how long it takes. When the monthly payments together are more than what is left at the end of the month, a debt counselling service (Schuldnerberatung) helps further. It can negotiate with your creditors, and free services exist across Germany, online too.

Find a counselling centre, BAG-SBThe German federal association for debt counselling runs a search for counselling centres near you, in German, with a filter for services that are free of charge.

Online debt counselling, CaritasCaritas answers questions about debt online, free and anonymous, without a visit to an office. The service is in German, and the answer comes in writing from a counsellor.