info@winheller.com+49 (0)69 76 75 77 80Mon. - Fri. from 8am to 8pm, Sat. from 8am to 5pm

Banks cannot charge fee for every transaction on business accounts

Sep 23, 15 • Banking LawNo Comments

In a judgment dated July 28, 2015, the German Federal Court of Justice held that a bank’s general terms and conditions that set a fee of EUR 0.32 for every transaction are ineffective. In the case at issue, the terms and conditions also included transactions with erroneous entries and returned direct debits. For returned direct debits, a processing fee was charged in addition to the transaction fee.

Incorrectly executed payment orders

The Federal Court of Justice considered this clause to be contrary to the statutory provision according to which credit institutions are not entitled to charge fees for erroneously performed payment orders. Even though this provision was only introduced at the end of 2009, the Federal Court of Justice considered the breach to have occurred for the preceding period as well. During that period, the banks should at least have granted a free allocation for establishing and fulfilling loan or safekeeping relationships. That had not been done.

Corporate clients can profit

With this current decision, the German Federal Court of Justice’s continues its recent jurisdiction, which was already issued similarly for private accounts. Now, also business clients are included. At the described case, the complainant was awarded over EUR 77,000.00, which is to be paid back by the bank. For all our clients, it is therefore well worth checking whether the contents of the agreements with the credit institutions stand up to scrutiny. With our specialized attorneys, we are looking forward to helping you with that endeavour.

Federal Court of Justice XI ZR 434/14

Continue Reading:
German Banking Law – Support for banks and financial service providers

Sebastian Förste

Sebastian Förste

Sebastian Förste advises credit institutions and financial services providers on regulatory issues and represents them in dealings with the Federal Financial Supervisory Authority (BaFin) and the German Central Bank (Bundesbank). In addition, he provides advisory services on the laws relating to cryptographic currencies, like Bitcoin, Ethereum and Ripple, and Initial Coin Offerings/Token Sales.

>> show profile

Leave a Comment

Your email address will not be published. Required fields are marked *

WINHELLER Blog via Newsletter

Subscribe to our free newsletter and receive regular updates on German business law by e-mail. (Mandatory fields are marked with *)

German Business Law News (4 times a year)
I would like to subscribe to the selected newsletter and for that purpose give my consent to WINHELLER to process my above mentioned data. I have read the "Information for Data Processing in the Newsletter Subscription". I understand that I can revoke my consent at any time with effect for the future by clicking the unsubscribe button within the newsletter. *