The bank raised fees illegally. Now he has to give the money back to his clients

As a consequence of the landmark ruling of the national Court of Justice, well-known German savings banks, including Sparkasse, were obliged to reimburse overpaid money to their customers. The scandal concerns an unlawful increase in account fees, transfers and another banking services. Find out what the origin of this fuss is and how you can get your money back.

What happened?

In April 2021, the national Court of Justice ruled that banks and savings banks, specified as Sparkasse, could not unilaterally rise charges without the express consent of customers. Earlier, many financial institutions utilized clauses in contracts that allowed them to change fees without active client permission. For example, if the bank introduced fresh charges or raised costs, the client was automatically charged with fresh rates unless he objected.

However, the fresh conviction changed the rules of the game. Clauses enabling specified practices have been found to be detrimental to consumers and thus unacceptable. As a result, the savings banks that have applied specified practices must now reimburse the overpaid amounts.

What Institutions Are Troubled?

Several savings banks, specified as Sparkasse in Bielefeld, Bad Oeynhausen, Volme and Ruhr, were obliged to return the money. They were punished for unlawful increases in fees and changes in contracts without adequate client consent.

ATM/Bank machine

What does this mean for customers?

1. Money Back: Customers who have been charged higher fees may anticipate to be reimbursed overpaid amounts. In practice, this means that any savings bank that has utilized illegal clauses must reimburse overpayments.
2. Organisation: The savings banks must now contact their customers and get their explicit consent for any future changes in fees. Otherwise, any fresh rise will be considered invalid.
3. Verification of Own Fees: Customers should check their bank accounts and compare current charges with those before the changes. In case of irregularities, it is worth contacting the bank or savings bank to explain the situation and get a refund.

How to Get Back?

1. Contact with Bank: Contact the nearest client service facility or office of your savings bank. Ask for clarification on the introduction of fees and information on the refund process.
2. Documentation: Prepare papers confirming the amount of overpayments specified as bank statements and bank correspondence regarding changes in fees.
3. Complaint to the Consumer Advice Centre: If you are having problem recovering money, you can file a complaint with the Consumer Advice Centre of NRW, which protects consumer rights and can aid resolve the dispute.

Future of Bank Fees

The national Court of Justice ruling is simply a step towards greater transparency and fairness in bank charges. Customers should be aware of their rights and monitor any changes to the terms of the agreement in order to avoid illegal increases in the future.