And they are moving: In the dispute over additional interest payments for premium savings contracts, the first savings banks are now approaching customers on their own initiative to look for solutions. The Kreissparkasse Köln and the Sparkasse Köln-Bonn – number three and four of the German savings banks in terms of total assets – want to write to their customers and inform them about the legal situation. The Kreissparkasse Köln wants to submit comparison proposals to the savers afterwards, explains a spokesman. Customers are likely to be offered additional payments for their around 25,000 premium savings contracts.
“This is the first time that there has been movement in the savings banks,” says Michael Hummel, legal expert at the consumer advice center in Saxony: “We see it positively – but it was also high time.” The issue at stake is the dispute that has been going on for years as to whether credit institutions have calculated the interest on premium savings contracts correctly. Savings banks and Volksbanken sold millions of such contracts between 1990 and 2010. In addition to a fixed premium, customers receive variable interest rates. In the low-interest phase, however, the institutes lowered the interest rate on their own. As a result, the savers may not have been credited enough. This often involves several thousand euros.
BGH judgments appear to have an effect
Last October, the Saxon consumer advocates fought for a first judgment in favor of the customers before the Federal Court of Justice. Two more followed in November. The judges declared the interest clauses in the contracts of the savings banks to be invalid. They stipulated that the financial institutions must use a long-term interest rate from the Bundesbank to calculate interest rates. The lower court – the higher regional court in Dresden – must now decide which that is specifically.
The judgments are apparently having an effect – at least for some institutes and associations. For example, the Savings Banks Association of Baden-Württemberg recommends its members to make as many comparisons as possible, a spokesman confirms. A spokeswoman for the Bavarian Savings Banks Association emphasizes: All institutes wanted to “find a good way” with their customers. The arbitration board of the German Savings Banks and Giro Association also advises the savings banks to recalculate the interest according to the specifications of the BGH. According to the most recent activity report, “the controversy can then be brought to a conclusion” via agreements with customers. The ombudsmen had previously rejected arbitration on back interest payments.
Not all customers get comparable offers
However, the incipient change of heart at the savings banks is far from benefiting all customers. Very few institutions are still actively approaching savers. Instead, the institutes often only offer agreements to those customers who address the problem themselves or who immediately request additional payments. Others only inform customers about the effects of the BGH judgment when savings contracts expire or are terminated.
Months ago, the Federal Financial Supervisory Authority (Bafin) issued a general decree obliging banks to write to customers, inform them of invalid clauses and make comparative offers. However, a good 1150 institutes objected to this. The Bafin has now rejected these contradictions in a test case – and thus made lawsuits possible. However, it is still unclear whether and when the financial institutions have to comply with the order of the financial supervisory authority.
At least one million contracts nationwide
According to Bafin, the number of premium savings contracts nationwide should be at least one million. With additional payments of several thousand euros per contract, the institutes are therefore dealing with a total of billions. Many of them are therefore still reluctant to make comparisons despite the BGH rulings. In Bavaria, there are “no savings banks that approach their customers themselves and offer additional payments or subsequent calculations,” says Matthias Schmid, a lawyer at the Bavarian consumer advice center. In Saxony, too, it has been “the norm that people have to approach the institutes themselves,” reports Michael Hummel.
Consumer advocates therefore continue to advise premium savers to review their contracts and have the interest recalculated. That costs around 90 euros. More than 6,000 savers have done so at the Saxon consumer center. The additional demands are on average 3600 euros. The amounts that the institutes are willing to pay for comparisons have recently increased. “In some cases they were 100 percent of what we calculated,” says lawyer Hummel. He also attributes this to the most recent court rulings.
It is therefore quite possible that other savings banks will offer their customers comparisons in the future – at the latest when the final calculation interest rate has been determined. That could be the case in the middle of the year. Even then, however, it makes sense to have the interest recalculated in order to be able to assess the offer, says Matthias Schmid: “You should definitely seek independent advice again.” Anyone wishing to assert claims can also participate in a model declaratory action. For the proceedings against the savings banks in Munich and Nuremberg, for example, this is still possible until May 12th.