After Credit Suisse debacle: Bafin receives more complaints about banks

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In 2022, the number of complaints rose by a fifth to 15,000, according to Bafin surveys available to Reuters. Consumers complained most frequently about account suspensions or closures, problems with cards and civil law issues. Consumer advocates are also reporting increasing inquiries and uncertainty among customers, for example because of the turbulence surrounding the major Swiss bank Credit Suisse.

The German banking industry, which represents the interests of the local financial institutions, sees no loss of confidence even after the most recent banking turmoil. “The German banking market is extremely stable and robust,” explains a spokesman on request. “As in any industry that offers bulk business services, there are cases where there are disagreements between the customer and the bank.” You can see a declining number of complaints since 2021.

“The mere fact that consumers are asking us more and more and seeking our advice is proof enough that they don’t entirely trust the institutes,” says Niels Nauhauser, an expert on banks and old-age provision at the Stuttgart consumer center. His colleagues from other federal states won judgments against unilateral interest rate adjustments in premium savings contracts, incomprehensible promises of sustainability in investments or changes in the terms and conditions without the explicit consent of the customer.

The decision of the Federal Court of Justice (BGH) of April 2021, according to which the account fees cannot be increased without the explicit consent of the customer, is a thorn in the side of the financial institutions. Whether in online banking or by post – obtaining the approval of over 110 million account holders in Germany is an immense burden for the financial institutions, both financially and bureaucratically, says an expert from a German industry association. Before the BGH decision, it was sufficient to inform the customer about upcoming changes to the terms and conditions and if he did not object, these were considered accepted.

According to a survey by the consulting firm EY, 31 percent of Germans have little or no trust in the financial sector. The crisis of confidence is also due to the fact that the industry has repeatedly adjusted the conditions in its favor, says Sascha Straub, head of the department for financial issues at the Bavarian Consumer Advice Center.

Frankfurt (Reuters)

Image sources: nitpicker / Shutterstock.com, Kai Hartmann Photography – BaFin