DSC prevails before the Austrian Supreme Court

In a high-profile test case concerning the interest paid on checking accounts, our Banking & Finance team – led by Markus Kellner and Fabian Liebel – has recently secured an important victory for the Austrian banking sector.

The Austrian Consumers’ Association (VKI), acting on behalf of the Minister for Consumer Protection, challenged the legality of agreeing to 0% interest on credit balances in checking accounts – particularly in connection with variable interest on overdrafts. In a recent decision (10 Ob 56/24v), the Austrian Supreme Court dismissed the VKI’s claim against our client.

In its reasoning, the Supreme Court confirmed that while the agreement on credit interest in checking accounts is, in principle, subject to content review under Section 879 (3) of the Austrian Civil Code (ABGB), a difference in the interest rates applied to credit and debit balances does not amount to a gross disadvantage for consumers.

The Court clarified that interest on loans cannot be compared to credit interest on checking accounts – the latter primarily serve as a means of cashless payment, not as an investment instrument. There is no statutory obligation to pay interest on credit balances.

View full decision (in German) >>

The judgment sends a strong signal in favor of the Austrian banking sector and marks a significant success for our client.