The discussion about increasing interest surpluses of the banks – ie high interest rates on loans and low interest rates on savings – is now also calling the government into action
The Ministry of Social Affairs has now commissioned the Association for Consumer Information (VKI) with a class action lawsuit against the banking sector, the Ministry announced on Tuesday. In June, the VKI warned Bank Austria on behalf of the entire industry – but so far without success.
“The fact that banks are constantly increasing borrowing rates while leaving credit rates at zero is unacceptable. Here, profits are made at the expense of consumers,” said Social Affairs Minister Johannes Rauch (Greens). He is confident that these “improper business practices” will be banned in court.
First instance decision later this year
According to a comparison website run by the Chamber of Labor (AK), banks charge between 6.75 and 13.25 percent debit interest. Credit interest on salary accounts is between 0 and 0.1 percent. A decision by the first instance is expected this year.
“It is obvious that this business practice affects the entire Austrian banking industry,” criticized Rauch. “I have therefore commissioned the VKI to take legal action against it.”
After all, “consumers are dependent on a checking account,” says Rauch. And banks used this dependency with their business policy.
The situation is to be reviewed again in September
The banks have adjusted the interest rates for savings or announced a change. The ministry announced that it would review the situation again in September 2023. Then it should be decided whether legal measures should also be taken in the case of interest on savings. “We will continue to monitor the business policies of Austrian banks and intervene consistently if we see disadvantages for consumers,” announced Rauch.
2023-08-15 19:09:15
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