German Federal Court clarifies refund claims on current account fees

Friday 13 June 2025 - 10:20

By: Dakir Madiha

German Federal Court clarifies refund claims on current account fees

Banks and savings institutions in Germany can no longer assume their customers’ consent to fee increases simply because customers do not object within a set period. This principle was firmly established by the Federal Court of Justice (BGH) in a landmark ruling that invalidated so-called "consent fiction" clauses in bank contracts.

These clauses, common in general terms and conditions, treated contractual changes—such as price hikes or account model adjustments—as accepted if customers failed to object within a deadline. For years, this silent consent model was standard practice among banks and savings banks.

However, in April 2021, the BGH ruled in favor of the Federation of German Consumer Organisations (vzbv), declaring the clause used by Postbank invalid. The court found that the clause was overly broad and unfairly disadvantaged customers by presuming consent without explicit approval (BGH, judgment of April 27, 2021, case no. XI ZR 26/20).

Although the ruling directly concerned Postbank, it sent a strong signal across Germany’s banking sector, where many institutions employed similar contractual terms. This was reinforced on March 27, 2024, when the Berlin Higher Regional Court, in a model declaratory action, declared unilateral fee increases by Berliner Sparkasse invalid.

As a result, customers who were charged fees under these invalid clauses may be entitled to reclaim those fees and reverse contract changes. However, they should be mindful of statutory limitation periods for claims.

Consumer advice centers now provide interactive sample letters to help customers request refunds from their banks efficiently.

This clarification by the BGH marks a significant step in consumer protection, ensuring that banks must obtain clear consent for fee changes rather than relying on presumed acceptance.