Trade Republic accused of refusing interest back-payments

The consumer protection agency Verbraucherzentrale Baden-Württemberg has accused the neobroker Trade Republic of refusing to pay back lost interest to affected customers. This follows a legal settlement in July where the company agreed to cease misleading advertising regarding interest rates on customer funds.

The dispute centers on claims that Trade Republic's advertising did not clearly state that users had to manually activate an interest function within the app to receive promised rates. Consequently, some customers believed interest would be credited automatically and failed to activate the feature.

While Trade Republic previously agreed to a settlement involving a fine and the cessation of certain advertising practices, reports indicate the company is now denying interest back-payments to customers who missed out due to the perceived lack of clarity in their marketing.