What rights do I have as a consumer in the event of a bank insolvency?
January 13, 2022 | 50,00 EUR | answered by Carsten Ahlert
Dear lawyer specializing in banking law,
I am reaching out to you as I recently learned that my bank is facing insolvency. As a consumer, I am now concerned about my deposits and would like to know what rights I have in such a situation.
The situation is as follows: I have a checking account and a savings account with the bank in question, into which I regularly deposit money. Now I fear that my money is at risk due to the bank's insolvency. The current situation is very uncertain and concerning for me as a consumer.
My concerns mainly revolve around whether my deposits are protected by deposit insurance and how I can assert my claims in the event of a bank bankruptcy. I would like to know what steps I can take as a consumer to protect my money and what rights I have in the event of a bank insolvency.
Therefore, my question to you is: What rights do I have as a consumer in the event of a bank insolvency and how can I protect my deposits? Is there deposit insurance that can help me recover my money in case of emergency? What options do I have to assert my claims against the insolvent bank?
I thank you in advance for your support and look forward to your expert advice.
Sincerely,
Hans Otremka
Dear Mr. Otremka,
Thank you for your inquiry and your trust in my expertise in banking law. It is understandable that you are concerned about your deposits when your bank is facing insolvency. In such a situation, it is important to be informed about your rights as a consumer and to know how to protect your money.
First of all, I would like to emphasize that your deposits as a consumer are usually protected by deposit insurance. Deposit insurance is a legally mandated protection of deposits at banks to safeguard depositors in case of bank insolvency. In Germany, deposits up to a limit of 100,000 euros per person and bank are protected by statutory deposit insurance. This means that in the event of your bank's insolvency, your deposits up to this amount are secured and you should receive your money back.
If a bank insolvency does occur, as a consumer, you should assert your claims against the insolvent bank. First, you should contact the insolvency administrator, who is responsible for handling the insolvency proceedings. The insolvency administrator will assess to what extent your claims can be satisfied from the insolvency estate. It is important that you provide all relevant documents and evidence of your deposits at the bank to support your claims.
Furthermore, as a consumer, you also have the option to approach the Compensation Scheme of German Banks (EdB), which serves as an additional safeguard for deposits. In the event of a bank insolvency, the EdB can make additional compensation payments if the statutory deposit insurance is not sufficient to compensate all depositors.
Overall, it is important that you are well-informed as a consumer and know your rights to be able to act appropriately in the event of a bank insolvency. If you have further questions or need assistance, I am at your disposal.
I hope that my explanations have been helpful to you and have provided some reassurance in this uncertain situation. If you have any further questions, please do not hesitate to contact me.
Sincerely,
Carsten Ahlert
Attorney specialized in banking law
