German court ruling on Riester-Bauspar fees

The German Federal Court of Justice (BGH) has ruled that annual administrative fees charged in certain Riester-Bauspar contracts are invalid. The court determined that fees ranging from €15 to €24 per year constitute unlawful price-side agreements that unfairly shift administration costs to consumers.

The ruling follows a legal challenge brought by the Federation of German Consumer Organisations (vzbv) against Landesbank Hessen-Thüringen. While the bank argued that legislation regarding certified Riester products permitted such costs, the BGH clarified that the law does not automatically validate specific clauses that unfairly burden savers.

As a result of this decision, affected customers may be entitled to refunds for improperly paid fees, potentially 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) to recover payments made without a valid legal basis.