For many years, consumer protection associations have been calling for a cap on disputed bankruptcy interest in order to protect bank customers from over-spending their money. The banks have always been reached for the use of “disposables” strong, in the current low interest rate is the difference between the Euribor, to which the banks lend to each other, and the average Dispo interest rate at which they lend it to their customers, particularly large. The interest margin for the current credit facilities ranges from 7.9% to 13.8%. On January 1, 2014, there was a gap of 10.6% between the Euribor and the average disbursements.
The Federal government makes an action
The new federal government would now like to take measures to protect consumers against excessive interest charges. Although the simplest and most effective regulation – the capping of the discretionary interest – failed because of resistance from the EU member states, the new federal government was at least able to agree in the coalition agreement that “the use of a disposition credit should not lead to an excessive burden on the bank customer.” In concrete terms, the Federal Government would like to oblige the credit institutions to warn the customer when transferring to the repayment credit significantly before the costs . In the event of a permanent and significant overdraft of the account , there should be a duty to advise on more favorable financing alternatives. Supposedly, the coalition parties want to bring a similar regulation in 2014 on the way, according to the Justice Department, but it could take until 2015 to have a vote ready bill.
Banks fight against planned dispozings measures
As expected, the project meets with little interest in the banks, they defend themselves for years against the charge of rip-off with reference to the higher risks in discretionary loans . After all, these were flexible and completely unsecured; in order to absorb the numerous loan defaults, the banking industry had to take high risk premiums . Furthermore, consumers would have the choice, they could change the bank if necessary and thus take advantage of more favorable Dispozinskonditionen . In fact, it is to switch banks each consumer free, just the checking account that is associated with a considerable time and administrative burden, which is why many fear the change. Banks are benefiting from the convenience of consumers and the lack of competition , they will not voluntarily forego overdraft interest, so lawmakers are urged to finally protect consumers .
Interest cover fails because of the resistance of the banking lobby
Ideal would be an interest cover , for example, a maximum allowable interest premium on the current Euribor interest rate . Within this interest window could continue to play the competition. The banking lobby will prevent such a regulation, however, with all its might.