Status: 01/30/2023 06:26 a.m
If bank customers do not want to accept a more expensive checking account, they are threatened with termination. In such cases, a change can be worthwhile. But the letter of termination does not have to be the last word.
Sparkasse KölnBonn tried again and again for more than a year: With “intensive customer contact” they wanted to convince their customers of the new current account models. In many cases, the bank was apparently successful, according to their information, 95 percent of users accepted the more expensive current account.
Sparkasse terminates 38,000 customers
Customers now either pay nine euros a month for their checking account or they choose a model for five euros a month, which incurs additional costs. Then they have to pay an extra 40 cents each time they pay with their Girocard, transfer money or withdraw something at the counter, for example.
Actually, only a small proportion of customers did not agree. But because the Sparkasse KölnBonn is one of the largest savings banks in Germany, it involves around 38,000 people. And the savings bank has now terminated their account. Those affected are now faced with the choice of whether to go for the more expensive account or to look for a new bank.
Banks must obtain approval
The background to this is a judgment by the Federal Court of Justice in spring 2021. Since then, banks have had to obtain the consent of their customers if they change the terms of the contract. If they are unsuccessful and still no longer want to offer the old conditions, then their only option is to terminate the contract.
In December last year, another court decision consolidated the legal situation. The Sparda-Bank Hanover had already taken it as consent if customers continued to use the account after the contract change, for example by making a transfer. In court, the Federation of Consumer Organizations enforced an injunction against the bank’s actions. Further use is not sufficient as approval.
Further use cancels termination for Sparkasse
The Sparkasse KölnBonn also uses a back door. Although she terminates the customer, after the notice period has expired, she still wants to let the accounts continue for a month. “If the customers in question actively use their account during these four weeks”, for example by paying out cash, according to the bank, “this is also considered as so-called ‘implicit consent’, i.e. consent to active action.” The account will then remain.
Heiko Dünkel from the Federal Association of Consumer Organizations does not want to conclusively evaluate this approach. However, the consumer advocate concedes that the case is “not congruent” with the actions of Sparda-Bank Hanover. This had not even given notice to the customer.
Direct banks usually cheaper
But what is left for customers who do not want to accept fee increases? Josefine Lietzau from the online portal Finanztip has a clear piece of advice here: “If you want something inexpensive, you usually end up with a direct bank.” What is meant are banks that operate entirely over the Internet and have no branches: “We currently recommend the DKB, Consorsbank, Comdirect and ING.” The disadvantage of these direct banks is obvious: personal contact with customer service representatives in the branch is not possible.
The fact that account management fees have risen so much in recent years has economic reasons, says financial expert Lietzau: “Checking accounts are a bad business for banks.” Among other things, expensive IT infrastructure must be operated for this. Banks could use current accounts to retain customers in order to sell them other products. The banks then earned money with investments and loans, says Lietzau.
Customers used to expensive accounts?
The rising level of interest rates, which banks can once again use to earn more money with savings deposits, is also likely to have an impact on account models. Some banks even lure you with attractive overnight interest rates.
Finanztip expert Lietzau therefore does not believe that the account management fees will continue to rise sharply: “I expect that there will now be a bit of calm.” However, Lietzau does not assume that the banks will reverse the “cost spiral”. After all, the financial institutions and, to some extent, consumers too have gotten used to the more expensive accounts.