Loan deferrals: consumers paid on it | expert report

In March 2020, the Bundestag passed a credit moratorium to protect consumers with loans from insolvency. On this basis, debtors who got into payment difficulties due to the Corona crisis were able to suspend the installments for interest and repayments for three months.

How the financial institutions implemented this law, the Federal association of consumers (vzbv) examined. Affected consumers could contact the association directly. The vzbv has now received reports that financial institutions have not implemented the legally stipulated credit moratorium in the interests of consumers.

The legislator wanted to avoid additional costs for consumers. Therefore, he emphasizes in the explanatory memorandum that consumers should not incur any default interest, fees or claims for damages at the expense of the consumer. The cases before the vzbv therefore violate the legal moratorium on credit or circumvent it and thus violate the intention of the law.

According to the vzbv, it is now up to the banks to reimburse unlawfully demanded interest to consumers and to forego further unlawful claims.

Additional costs for consumers

In the reported cases, different scenarios were identified, which meant additional costs for consumers. In the first scenario, the banks complied with consumers’ requests for deferral, but continued to demand interest. As a result, the total cost of the credit to the consumer increased.

In another variant, consumers had to make individual agreements with their banks that were detrimental to their legal deferral claim. For example, the borrowers had to pay higher installments as a result or they were only granted a deferral if they topped up the loan.

Other consumers should increase their overdraft facility on the advice of the bank to bridge the gap. In addition, consumers also reported fees for simply changing the installment plans from 15 to 90 euros.

Dorothea Poppy, Head of the financial market team at vzbv, on this:

“The financial supervisory authority is called upon to review how the banking industry has dealt with the moratorium and to put an end to misconduct. Banks that have demanded interest from their customers despite deferring should revise their illegal decisions, refund consumers the money and waive unlawful claims. “

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