GER: BaFin Advises Checking Your Savings Plans

Oct 25, 2024 Benn-Ibler Rechtsanwälte

The Bundesanstalt für Finanzdienstleistungsaufsicht (German Federal Financial Supervisory Authority, hereinafter BaFIn) recommends that customers check their premium-linked savings agreements (‘Prämiensparvertrag’) for possible claims for back payments, as they might be entitled to such claims.

The ineffectiveness of the interest adjustment clauses in question has led to a contractual gap in premium-linked savings contracts. This gap was closed by a supplementary interpretation of the contracts. Although the German Federal Court of Justice (Bundesgerichtshof, hereinafter BGH) has provided guidance in several rulings, it has remained unclear which reference interest rate should be used for adjustment. According to the BaFin, in the latest BGH ruling from July 2014, the BGH has now confirmed a possible reference interest rate for the subsequent calculation of interest for ineffective interest adjustment clauses.

Accordingly, holders of older premium-linked savings agreements may be entitled to back payments because many of these contracts contain clauses that allow credit institutions to adjust interest rates unilaterally and without restriction. The BGH had already declared these clauses invalid in 2004. Now the court has confirmed that the reference interest rate can be a possible basis for the subsequent calculation of interest in the case of premium-linked savings contracts.

Consumers should review their contracts as soon as possible and have their bank explain the terms and conditions of their contracts to them.

Consumers may also be entitled to back interest payments if their contracts have already been terminated. In this case, however, a three-year limitation period applies.

BaFin Press Release (2 October 2024)