ABN AMRO in talks with consumer association’s claims service

Kifid ruled that consumers may expect the interest rate on their revolving credit to stay in line with the reference rate for the entire duration of their facility. Kifid compared the interest rate on the facility with the Dutch central bank’s reference rate. It found that ABN AMRO must repay part of the interest paid by the client because in Kifid’s view the interest rate was not sufficiently in line with the market rate. ABN AMRO has studied the ruling and will abide by it in the case of the client concerned.

The Appeals Board’s ruling sends an important signal about the importance of interest rates being sufficiently transparent. ABN AMRO is taking this signal seriously, especially in the context of its clients’ interests. As a result, ABN AMRO is reviewing its pricing policy and the way this was executed. ABN AMRO has also accepted the invitation by Consumentenbond Claimservice, a partnership between the Dutch consumer association and a consumer claims specialist, to work out a solution together. ABN AMRO will be including this review in its talks with the consumer association.

ABN AMRO is nevertheless disappointed that Kifid did not respond in sufficient depth to its objections regarding the reference rate. The interest rate on a revolving credit facility is not based solely on the market rate. Kifid ignored these points and stated that the market rate is the best available reference. ABN AMRO does not agree with the method and the reference rate used. It is therefore asking a civil court to rule on this matter.

ABN AMRO is confident that the talks with the consumer association will be constructive. It is a complex process that the bank wants to get through as quickly as possible. Clients will be kept informed by means of the ABN AMRO website.