German Federal Court invalidates fees for Wohn-Riester contracts

The German Federal Court of Justice (BGH) has ruled that annual administrative fees for certain Wohn-Riester building society contracts (Bausparverträge) are invalid. The court determined that these fees, which ranged from 15 to 24 euros per year, constitute side agreements on price that unfairly disadvantage customers by shifting costs for internal administrative tasks onto the savers.

The ruling follows a lawsuit brought by the Federation of German Consumer Organisations (vzbv) against Landesbank Hessen-Thüringen. While the bank argued that legislation regarding certified Riester products allowed for such costs, the BGH clarified that while the law defines which types of costs may be included, it does not automatically validate specific clauses that unfairly burden the consumer.

As a result of this decision, affected customers may be able to claim refunds for improperly paid fees, covering at least the previous three years. However, the court noted that refunds are not automatic; individuals must actively seek repayment by citing Section 812 of the German Civil Code (BGB), which allows for the recovery of payments made without a valid legal basis.