2024-04-11 09:27:50
Financial institutions have introduced or increased checking account fees without the consent of their customers. A landmark court ruling could help thousands of customers reclaim overpaid fees.
In a recent ruling at the end of March 2024, the Berlin Court of Appeal found in the first instance that Berliner Sparkasse was obliged to obtain the consent of its customers for an increase in current account fees. The court declared Berliner Sparkasse’s unilateral fee increases since 2016 to be ineffective. The Federal Association of Consumer Organizations (vzbv) had sued.
Customers have the right to reclaim the overpaid fees since 2018 as soon as the judgment is final. The vzbv is examining a revision to expand claims to refunds that arose before 2018, explains the federal association.
Silence is not consent
Berliner Sparkasse was not allowed to introduce or increase fees without the consent of customers. The Berlin Court of Appeal confirmed this with its ruling, explains Sebastian Reiling, consultant at vzbv in the model declaratory actions team.
“Sparkasse customers can claim back account fees to which they have not agreed. According to the judgment, the customers involved in the model declaratory action are entitled to refunds of amounts that they have had to pay additionally to the Sparkasse since 2018,” said Reiling .
Unilateral fee increases are ineffective
The savings bank had previously refused to pay back to its customers the additional amounts that it had collected, for example when switching from the “Comfort current account” to the “Giro flat rate”.
That is why the vzbv has filed a class action lawsuit – a so-called model declaratory action. Almost 1,200 customers have joined. The court followed the view of the vzbv, according to which bank customers must actively agree to fee increases in order for them to take effect.
Court ruling may affect other banks and savings banks
Already in 2021, the Federal Court of Justice confirmed with the Postbank ruling that a bank in Germany must obtain the express consent of its customers if it introduces or increases fees. Although this procedure only directly affects Postbank, it has a signal effect for the entire banking landscape in Germany.
Even if you have your account at another bank, you may still be able to claim money back. The consumer advice center advises you to ask your bank to reverse the changes to your contract if you have not actively agreed to these changes. This depends on the general terms and conditions (GTC) of your contract.
Example: You opened a fee-free account in 2015. As of May 2017, your account fees have been increased to five euros. In February 2020, the bank increased the fees again to ten euros.
In this case, you can claim back at least the fees that were charged from January 1, 2018.
- January 1, 2018 to January 31, 2020 = 25 months x 5 euros = 125 euros
- February 1, 2020 to February 30, 2024 = 60 months x 10 euros = 600 euros
You can claim back at least 725 euros. Please note that there is a statute of limitations for any claims for reimbursement.
According to the Federal Association of Consumer Organizations, it is still unclear when your claims will expire. The vzbv is of the opinion that claims in this case should only be time-barred if they date back more than ten years. In any case, you can claim reimbursement for the last three years. This means: You can still claim claims up to and including 2020 until December 31, 2023.
If the bank refuses to reimburse you, you may still be able to assert your claims through the so-called ombudsman procedure – also known as arbitration. You can also inform the financial regulator.
How to claim back illegally charged bank fees
To find out whether your bank or savings bank has also increased fees in recent years, the consumer advice center recommends taking a look at your documents. How high were
- Your annual account management fees from the last few years,
- the fees for deposits and withdrawals,
- the fees for account statements,
- the costs for SMS-TAN procedures?
The bank may also have charged additional fees based on the new clauses in the amended General Terms and Conditions.
If you don’t know what fees the bank has charged you, you can request a so-called statement of fees. Refer to Section 10 of the Payment Accounts Act (ZKG). This states that the bank must provide you with a statement of fees “at least annually” and upon termination of the contract. Banks have been obliged to do this since 2018.
After reviewing your refund claims, you can write to the bank to request your payment back. The consumer advice center provides you with an interactive sample letter for this purpose.
If your bank threatens to terminate your contract, you can contact the consumer advice centers. The Federal Association of Consumer Organizations is currently examining further legal action against banks that reject legitimate claims.