Consumer topic: Construction loans with form errors

Because banks have taught at the completion of a construction loan incorrect revoking, customers can get out of expensive contracts. Without a lawyer that does not work normally.

This form mistake could prove costly financial sector. Many banks and financial institutions have their customers informed when signing a mortgage contract incorrect concerning the right – with the result that customers challenge the contracts and can record a new, cheaper loan. This saves many thousands of euro interest rates generally, such as the “financial” magazine reported. Vulnerable is any contract with incorrect cancellation, which was closed since November of 2002.

The statutory provisions banks have since then explain to their customers to understand how long they can withdraw from a contract without giving reasons – that is possible within 14 days after signing the contract. Many financial institutions apparently become victims of their own efforts to formulate the withdrawal for their customers to understand. Such as “financial test” writes, they would have been with the pattern text of the Federal Ministry of Justice on the safe side. But this was initially controversial. The Bank lawyers attacked itself to spring and, as it now turns out, next in formulating.

Thousands of euros saved by new contracts

The consumer centers of Hamburg, Bremen, and Saxony have analyzed nearly 10,000 contracts and found in 80 percent of cases mistakes. Far more than half of them had already been recognized by the courts, according to the “financial test” report. In individual cases, borrowers were able to save 10,000 euros and more by dissolving the old and the conclusion of a favorable new contract.

It will also benefit those who want to sell their house or apartment before the end of the fixed interest rate. If they successfully revoke their contract, the so-called prepayment penalty is eliminated. This can be up to 39,000 euros, depending on the level of the rate, remaining fixed interest rate and with a 200,000-euro loan as “financial test”, calculates. That banks want to keep the topic most like under the lid no wonder. Too big is the fear that now every second credit customer knocks on the door and wants a better contract. According to “financial test” it goes for banks and savings banks to hundreds of billions of euros.

The contract should be checked when a lawyer

Consumer advocates, who are usually quick too, if there is something to criticize publicly the conduct of the banks, but even understand. “Order cancellation is complicated as hell,” says Christiane about Kienitz, a consultant for mortgage lending at the center for Hesse, firmly. One could assume “evil intention” any bank one. “A bank has an interest that the revocation is correct.”

Exercise restraint, the consumer advocate also for another reason. First of all, it is a question of collecting “gently” experience, says Kienitz. In many cases, there is no supreme court. At the center for bank customers can first be checked by a lawyer, if there is anything objectionable in their contract. The consumer center in Rheinland-Pfalz does this not out of personal reasons, as they say.

70 percent of the contracts in Hesse wrong

In Hesse, there is already a strong demand. “And it is increasing,” says Kienitz. According to the officer, about 70 percent of the contracts do not meet the regulations. With almost a third of them, good opportunities for early withdrawal from the credit agreement existed.

But this is only the first step. “Law enforcement is difficult in many cases,” says Kunitz. “Without a lawyer is then usually comes not.” Also, “financial test” reports of resistance of the financial sector. That the magazine explained in two pages as are “fit for the revocation” bank customers, shows how complicated the matter is.

Kienitz hopes that primarily benefit consumers in need: to reschedule a contract which is forced because of divorce, death or unemployment bank customers, that is, to pay off the old contract to complete a new one with more favorable terms. Or who need to sell their property. The fees, which require banks it would, most are not in the drawer. Because of the contestability of contracts, they would have a better basis for negotiation now. “That’s an ace up his sleeve,” hopes Kienitz.

Only this week the Federation of Consumer Organizations had criticized the high prices charged by banks for the early repayment of a bank loan and called for fairer rules. After an analysis of consumer advocates, the fees in Germany have increased over the past six years, an average of four to nearly eleven percent of the remaining loan amount. This means that Germany lies in Europe at the top. The Consumer advocates demand a percentage of the balance cap.

If a customer drops out of his mortgage contract, he is fundamentally dependent on the goodwill of his bank. Only in two cases, the borrower has an exit right: On the one hand, if he wants to sell his property or if he plans a reconstruction and for a new loan takes the denied his bank. Either way, a bank may require a prepayment penalty for the disadvantage of her arises in such cases if they do not receive fixed interest payments for a terminated credit. If a credit agreement for a revocation error contestable, eliminating the usual Vorfälligkeitsgebühren. This also applies to contracts that are rescheduled for interest reasons


Magical Mentone
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Rhododendron-lined sidewalk in Mentone

Nestled atop Lookout Mountain, in DeKalb County, Alabama, rests a quaint little hamlet that beckons the weary and those seeking solitude from big city life. Mentone, it is called, penned for a French town whose name means ‘musical mountain spring.’ Once a thriving health resort, people came from all over the world to partake of the mineral springs that were believed to have healing powers. The springs are no more but the magic and appeal of Mentone remains.

Accommodations in Mentone are as unique as the town itself. Cozy country cottages sit nestled among the pines along the west fork of Little River and the innkeepers of Mentone’s many Bed & Breakfasts Inns await your arrival. Enjoy the mountain’s gentle night sounds as they lull you to sleep. Then awaken to the melody of nature as it lures you to the breakfast table.

One visit to Mentone and you too will feel the warmth and charm that has attracted tourists for over a century. Make plans today for an experience of a lifetime.a


Special Events and Places to hold Special Events
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Cragsmere Manna Restaurant – Perfect for receptions, dinner parties and group events. 256-634-4677

Fall Colorfest – Held the 3rd weekend of October each year in Mentone’s Brow Park. Sponsored by the Mentone Area Preservation Association. 256-634-4041

Mentone Wedding Chapel – Linda Kilgore, 256-634-4181.

Mountain Musical Strings every third Saturday at 7 p.m. on the town square May- December

Rhododendron Festival – Held in the spring. The arts and crafts festival is held in Mentone at the Brow Park. It is sponsored by MAPA, the Mentone Area Preservation Association. Dates for 2005 are the weekend of April 30th and May 1st. 256-634-4041

Sallie Howard Memorial Chapel – The perfect place for a wedding. 256-638-4441

Winston Place – Open year-round. Leslie Bunch. 256-635-6381.


Shopping in the Northeast Alabama
Appalachian Mountains
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Antique Shopping in Downtown Mentone

Artisans Ltd. “The Inca Connection”
Closed January and August
Open Saturday and Sunday 9-4 CST
Catharina Collings 256-634-3076

Crow’s Nest Antiques – 256-634-4548, open Thursday – Sunday, 10:30-4:00, CST

Hummingbird House Gift Shop and Nursery – 4248 Alabama Highway 117 – 256-634-4055

Iron Age Crafters, Inc. – 706-398-0858

Junk Galore – 1-877-711-5865

Little River Hardware, Inc. – 256-634-4757, 7:30-5:00

Mountain Air Village – 1-706-862-6025, Monday – Saturday, 11:00 – 6:00, EST

Mountain Mamas Craft and Rock Shop – Contact Mary Alice Stout at 1-706-862-6481, Open April – November, Friday-Sunday 12-6 p.m. EST Website

White Elephant Antiques and Gift Galleries – 1-256-634-4529, Open Monday – Friday, 10:00 – 4:00, Saturday – Sunday, 10:00 – 5:00, CST Closed on Tuesday Email

The Gourdie Shop – 1-256-634-4776, Open April – December, Thursday – Sunday, 11:00 – 4:00 CST


Business Services
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Little River Canyon National Preserve

Allgas – Propane Gas and Tanks. 256-442-8323

Body Maintenance – Massage Therapist, By appointment only. Monday, Thursday – Saturday. Donna Sutton 256-634-3032

Clean Care – 8 a.m. to 3 p.m., Monday – Friday. Jim Howell 800-848-0596 and 256-845-4224

Douglas E. Hoyt, CPA – By appointment only. 256-635-0292

Jones Construction Company – 9 a.m. to 4 p.m., Monday – Friday. Carl Jones 256-634-4049

North Lookout Mountain Fire Protection District – Jim Roberts, Chief. 256-634-4701 (In case of emergency – dial 911)


These Organizations are ready to assist you with your plans to visit the Mentone region of Lookout Mountain, Alabama

DeKalb County Tourist Association – Visitor information center ready to provide you with all the details you need to plan the perfect vacation in the Northeast Alabama Mountains. Call today and let our staff assist you with planning your next visit. Office hours are 8 a.m. to 4 p.m. CST, Monday – Friday. 888-805-4740 and 256-845-3957. Email

MAPA – The Mentone Area Preservation Association, Non-Profit organization. Sponsors the Rhododendron Festival in May and the Fall Colorfest in October. 256-634-4041

MERF – Mentone Educational Resources Foundation, Non-Profit. Contact Sue Henry at 256-634-4599

Mentone United Methodist Church – 256-634-4881 Frankie Jones, Hours vary.

Town of Mentone – Charming mountain top resort that features many Bed & Breakfast Inns, Antique and Craft shops, unique Restaurants, cozy Country Cottages and breathtaking vistas and scenic attractions. 1-256-634-4444 Office hours 8 a.m. to 12 p.m., Monday – Friday.

Moonlake Baptist Church – Sunday Services at 11:00 a.m. 256-634-4568 Bill Russell

St. Joseph’s on the Mountain Episcopal Church – Sunday Services at 10:30 a.m. with the Reverend David Crippen. 256-634-4476


Dining in the Northeast Alabama
Appalachian Mountains

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Cragsmere Manna Restaurant – 256-634-4677 Serving Southern Cuisine in a 1920’s farm house. Open Friday and Saturday from 5 p.m. to 9 p.m. Also available for parties and special events. Prices range from $10 to $20 per person, including beverage.

Dessie’s Kountry Chef – 256-634-4232 Serving Country Cooking, just like Mom used to make. Open Monday, Wednesday and Thursday from 10 a.m. to 7 p.m., Friday and Saturday 10 a.m. to 8 p.m. and Sunday 11a.m. to 2 p.m. Prices range from $5 to $10 per person, including beverage


Camps in Mentone are more than just summer fun for children. They are open year-round and available for family reunions, retreats and more.
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Alpine Camp for Boys – 256-634-4404 Office hours from 8 a.m. to 4 p.m., CST

Camp Laney for Boys – 256-634-4066 Office hours from 9 a.m. to 5 p.m., CST

Camp Skyline Ranch – 800-448-9279 Office hours from 8 a.m. to 5 p.m., CST

Little River Retreats – 256-634-4043 Office hours from 8 a.m. to 5 p.m., CST

Nature’s Classroom – 256-634-4043 Office hours from 8 a.m. to 5 p.m., CST

Riverview Camp for Girls – 256-634-4043 Office hours from 8 a.m. to 5 p.m., CST