No More Banking Secrets: BGH Sets the Record Straight on Expiration of Unlawful Bank Fees
Bank's Position on Bank Charges: Time Constraints Explained - Banking Authority Lifts Cap on Unreasonable Bank Fees
Get ready to reclaim your hard-earned cash! German consumers now have a clear timeline for filing claims against unauthorized bank fees, all thanks to the Federal Court of Justice (BGH). In a recent ruling, the BGH clarified that the regular statute of limitations of three years applies to these claims, starting from the end of the year the claim arose and customers became aware of the underlying circumstances.
The BGH's latest decision comes after months of dispute surrounding the expiration of these claims following their landmark ruling in 2021. The court has now made it clear that consumers can file claims even before the 2021 ruling, when widespread use of invalid clauses made it challenging to determine the unlawfulness of the fees. The key to expiration lies in the approval of the balance statements, not the debiting of the excessive fees.
At the heart of the case was a model declaratory action by the Federal Association of Consumer Centers against the Berlin Sparkasse, with nearly 1,200 customers joining in. The Sparkasse's general terms and conditions contained a so-called consent fiction clause, which automatically deemed customers' consent to fee increases if they didn't actively object within a certain period. This clause, which was common at many banks in the past, was ruled invalid by the BGH in April 2021.
The BGH's ruling empowered bank customers to reclaim excessive fees, and in November 2021, the court further strengthened their position by stating that even if a customer paid the invalidly charged fees without objection for more than three years, the bank could not keep this money. Nevertheless, it was still unclear when the repayment claims expire.
The BGH saw no need for consumers to be aware of the invalidity of the consent fiction clause for the start of the limitation period. The legal situation was already clear before the 2021 ruling, allowing consumers to file lawsuits even before that. The widespread use of invalid clauses before the ruling does not speak against this.
Unfortunately, banks and savings banks have managed to keep a significant portion of the improperly charged fees. According to a survey by comparison portal Verivox, only 11% of all customers have demanded money back from their bank, translating to a large chunk of unclaimed refunds.
"Given that at least 40% of all customers experienced an increase in current account fees in the three years before the ruling, many who could have claimed refunds remain unaware of their right to do so," says Verivox CEO Oliver Maier. It's essential for consumers to take action and exercise their rights by contacting their banks and filing refund claims as soon as possible.
- Federal Court of Justice (BGH)
- Statute of limitations
- Account fees
- Bank fees
- Karlsruhe
- Federal Association of Consumer Centres
- Consumer center
- Berlin Sparkasse
It's high time consumers stand up for their rights and demand the refunds they are owed. Don't let banks hold on to your money any longer – take action now!
EC countries can benefit from the clarification provided by the German Federal Court of Justice (BGH) on the statute of limitations for vocational training fees claims. This decision means that individuals in similar situations, across Europe, can potentially reclaim unauthorized training fees, particularly in industries where such fees have been considered unlawful under business practices. Businesses offering vocational training in EC countries should be aware of this judgement and ensure their fee structures are transparent and comply with local regulations to avoid future disputes.
