VKI launches collective action for Austrian bank kick-back claims

The Association for Consumer Information (VKI) has launched a collective action initiative regarding controversial kick-back payments in Austria. The program allows fund investors to register for free to have their claims reviewed against several banks.

The dispute concerns trailing commissions that banks allegedly received from fund companies without disclosing them to customers. These payments, which were reportedly collected unlawfully until the end of 2017, typically ranged between 0.3 and 1 percent of fund assets annually. Depending on the investment duration and asset size, affected customers could claim several hundred to several thousand euros.

Participating banks include BAWAG P.S.K. (including Easybank, direktanlage.at, and Hellobank), BKS Bank, BTV Vier Länder Bank, Gutmann Kapitalanlagegesellschaft, Raiffeisen Bank International, Kathrein Privatbank, Schöller Bank, HYPO-BANK BURGENLAND, Hypo Tirol Bank, Hypo Vorarlberg Bank, HYPO Oberösterreich, Schelhammer Capital Bank, and Bankhaus Carl Spängler. The VKI noted that out-of-court settlements have already been reached with other institutions.