Status: 04/06/2023 08:29 am
Account suspensions and card problems are a growing nuisance for bank customers. The financial supervisory authority BaFin is receiving more and more complaints about banks and financial institutions.
At the financial supervisory authority BaFin, complaints from consumers about banks and financial institutions have increased sharply. The number of complaints rose by a fifth to a total of 15,000 in 2022. This is the result of BaFin surveys available to the Reuters news agency. Consumer advocates are also reporting an increase in inquiries and uncertainty among customers, not least because of the turbulence surrounding the major Swiss bank Credit Suisse.
However, the German banking industry, which represents the interests of German financial institutions, does not want to hear anything about a loss of confidence. She emphasizes that the German banking market is still stable and robust despite the recent banking turmoil. “It’s normal for customers and banks to have disagreements in an industry that offers mass services,” a spokesman said.
Expert sees loss of confidence in banks
However, some experts see the growing number of inquiries and complaints from consumers as evidence of declining trust in financial institutions. “The mere fact that consumers are asking us more and more and seeking our advice is proof enough that they don’t entirely trust the institutes,” says Niels Nauhauser, an expert on banks and old-age provision at the consumer center in Stuttgart.
In other federal states, consumer advocates have already won court rulings against unilateral interest rate adjustments in premium savings contracts, incomprehensible promises of sustainability in investments or changes in the terms and conditions that occurred without the explicit consent of the customer.
Difficulties after BGH judgment
The financial institutions are particularly concerned about the decision of the Federal Court of Justice (BGH) from April 2021. Since then, bank customers have had to explicitly agree to the General Terms and Conditions (GTC) – including any relevant changes to the GTC or prices. Since then, many banks have been trying in vain to get the approval of all customers. Some financial institutions are now not even afraid of drastic measures such as the threat of termination.
Others, on the other hand, rely on repeated contact with customers in order to still get their approval. According to an expert from the German industry association, however, obtaining the approval of over 110 million account holders in Germany involves an immense financial and bureaucratic burden.
Is the crisis of confidence homemade?
Before the BGH decision, it was sufficient to simply inform the customer about upcoming changes to the terms and conditions. If the customers did not object, the changes were considered accepted. According to a survey by the consulting firm EY, 31 percent of Germans have little or no trust in the financial sector.
The crisis of confidence is also due to the fact that the industry has repeatedly adjusted the conditions in its favor, according to Sascha Straub, head of the department for financial issues at the Bavarian consumer advice center.