Court rules Haspa cannot automatically extend fixed-interest savings contracts

Germany's largest savings bank, Hamburger Sparkasse (Haspa), has been prohibited by the Hanseatic Higher Regional Court from automatically extending its five-year fixed-interest savings contracts. The court ruled in favor of a lawsuit filed by the Consumer Protection Agency Hamburg, finding that such automatic renewals unduly restrict a customer's freedom.

Sandra Klug, who handles money and insurance matters for the consumer protection agency, stated that automatic renewals of savings contracts without a transparent cancellation option are unacceptable, especially when banks can unilaterally set new conditions. In this specific case, the interest rate was set to drop from 0.25 percent to 0.01 percent upon renewal.

Haspa responded by noting that the contract terms in question have not been offered for new business for years, meaning the court's decision affects only a small number of its customers. The bank confirmed it will inform these customers that their contracts will not be automatically extended. Haspa also clarified that the customer involved in the case had been informed and paid out.

The court denied the possibility of appealing the ruling, though Haspa can file a complaint. However, a court spokesperson indicated that the dispute value is likely too low to proceed with a complaint. Fixed-term deposit accounts are designed for saving, offering a fixed interest rate for a set period, typically higher than that of instant-access accounts. Access to these funds is usually restricted or only available in exceptional circumstances.

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Automatic renewals of savings contracts without a transparent cancellation option are unacceptable - especially when banks can unilaterally set new conditions.