Premium savings contracts: Bavarian savers are threatened with the statute of limitations on interest claims

Created: 2022-10-19 05:12

By: Catherine Brumbauer

The interest on premium savings contracts is a perennial topic of controversy.

At the end of the year, the claims for additional interest payments expire for those affected.

Munich – They were popular with savers: premium savings contracts.

The savings banks have been offering them since the early 1990s.

In addition to the interest, the financial institution offered a premium that increases the longer the contracts run.

In times of low interest rates, premium savings contracts became increasingly expensive for the banks.

The result was interest rate cuts and contract terminations.

The courts have long been concerned with whether these were legal.

The verdict in many cases: the banks have to pay their customers hefty back interest payments.

At the end of the year, December 31st, the claims for such compensation expire for those affected.

Premium savings contracts: Court decision decides: Savings banks may not change interest rates arbitrarily

In 2004, the Federal Court of Justice ruled in a landmark ruling that the savings banks may not arbitrarily change the interest rates for their premium savings contracts.

The courts have dealt with the subject frequently in the past almost 20 years.

Time and again, court judgments have obliged banks to make additional payments to their customers - in individual cases in the four-digit range.

One point is that interest rate cuts were illegal.

In 2019, consumer advocates complained that the interest rates were often incorrectly calculated.

Trouble with premium savings contracts: consumer center has complaints

In view of the statute of limitations on claims for additional interest payments, the Bavarian consumer advice center is once again sounding the alarm.

The association has two model declaratory actions pending in Bavaria.

In a lawsuit brought by the consumer protection organization before the Higher Regional Court of Munich, it was decided that the termination of the premium savings contracts was not illegal per se, as the consumer advice center believed it should have been.

Because when the highest premium level has been reached, for example after a term of 15 years, the Sparkasse can terminate their customers' contracts.

However, customers are still entitled to additional payments for incorrectly calculated interest, according to the unanimous opinion of the judges.

Consumer center: Premium savers can do that now

Affected customers, who are now threatened with the statute of limitations on their interest payment claims, should now best contact the arbitration board of their respective savings bank, the consumer advice center reports.

Savers could also ask their respective financial institution in writing not to invoke the statute of limitations.

"In this way, savers gain some time until the open legal issues have been clarified," explains Sascha Straub, financial lawyer at the Bavarian Consumer Advice Center.

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Premium savers are threatened with the statute of limitations on their claims for additional interest payments on December 31st.

© Julian Stratenschulte

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Lawsuit against savings banks: Premium savers have these options

Another option is to take legal action.

Anyone who has legal protection insurance can file their own lawsuit.

Everyone else could join a joint action.

In such a case, many individual lawsuits against a savings bank are bundled into one procedure.

The first savings banks in Bavaria canceled their contracts with premium savings customers in 2019.

Because of the options that savings bank customers have to prevent the statute of limitations, the consumer advice center is optimistic.

"Even if consumers have not joined either of the two Bavarian model declaratory actions and are not suing themselves, there is hope," emphasizes Staub, adding, however, that savers must become active in order not to get legitimate additional payments.

"On the other hand, if you want a definitive decision on your claims, you have to take legal action."

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