Advertising for a current account misleading?

Is a current account really free of charge if the bank charges an annual fee for a corresponding debit card? The Regional Court (LG) Düsseldorf has dealt with this question and decided in favour of consumers.

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The Sparda-Bank, based in North Rhine-Westphalia, advertised a free current account nationwide. In fact, the bank did not charge any account management fees. However, in April 2016, an annual fee of 10 euros for the issuance of a debit card (Girocard) was introduced. A corresponding card is required by the customer, inter alia, for cash withdrawals at ATMs and for printing account statements.

The Wettbewerbszentrale considered the Sparda-Bank's advertising to be misleading. Contrary to the advertising claim, the customer would have to incur the fee for the Girocard in order to use their account.

The Sparda-Bank defended itself by arguing that the customer could have a so-called "White Card" issued during business hours, with which cash withdrawals at ATMs would be possible. The Girocard did not belong to the conventional scope of functions of a current account.

Court's decision – Bank's advertising misleading

By judgment of 06.01.2017 (Az.: 38 O 68/16), the Regional Court (LG) Düsseldorf (Press release of the Wettbewerbszentrale of 10.01.2017) agreed with the view of the Wettbewerbszentrale and prohibited the bank's advertising as misleading.

The consumer imagines a "free current account" to be one in which one does not have to pay for the debit card.

Conclusion

Banks must – like other service providers – inform their customers transparently about any costs incurred. In this respect, advertising promises must also be kept. Otherwise, corresponding advertising statements are misleading and can be prohibited.

The judgment of the Regional Court (LG) Düsseldorf is not yet final. It remains to be seen whether the bank will lodge an appeal.