Interest clause and refusal of disbursement and cost allocation in the GTC

The clause of the calculation of the interest rate is based on the calculation method "ACT / 360" is legal. This standard method of calculation is based on the assumption that one year has a period of 360 days and that one month has a period of 30 days resulting in slightly higher interest rates. § 32 (7) BWG stipulates the 30/360 calculation method for the interest on savings deposits. Since the OGH considers that this provision can be generalised, such a clause is permitted in the GTC also. On the other hand, the creditor’s right to refuse the payment for "objectively justified reasons" was regarded as not transparent and therefore inadmissible: The clause suggests that the creditor always has the right to refuse the payment. The real legal situation is thus concealed from the consumer. In addition, the reference to the "currently valid notices" for a "possible" setting of costs for amendments to the contract or "other services caused by the consumer" "if necessary" violates § 6 (1) (5) KSchG. This gives the bank an unilateral right to change prices. [OGH 27.06.2016, 6 Ob 17/16t]

• [„BWG” is the Austrian Banking Act; “KSchG” is the Austrian Act on Consumer Protection.]