Dear Customer,
Do you have questions about our “General Consumer Loan Agreement” service? Here, we would like to answer any questions you may have.
This information fulfills the requirements of Section 14(1)(2) of the Accessibility Enhancement Act (BFSG). The BFSG is intended to ensure the accessibility of products and services offered by companies. This means that companies must guarantee that all consumers have easy access to the products and services they offer. Consumers should not have to rely on outside assistance to do so. The goal is for all consumers to be able to participate in society.
Please note: This information is intended to explain our General Consumer Loan Agreement in an easy-to-understand manner. It is not legally binding. Only your contract documents are legally binding.
This information is divided into 4 sections:
- Section 1 contains specific information. Here, we explain our “General Consumer Loan Agreement” service.
- Sections 2, 3, and 4 contain general information.
- Are you dissatisfied with our service? In Section 2, we explain your options if you have a complaint.
- Would you like to know how our service meets the requirements of the BFSG? In Part 3, we provide information about the accessibility features of our service.
- Are you experiencing accessibility issues with our services? In Part 4, we explain who you can contact in such cases. Here you will find details about the responsible market surveillance authority.
Joh. Berenberg, Gossler & Co. KG
1. Overview of Our Service
In this section, we explain our “General Consumer Loan Agreement” service. You will learn what the service entails and how it works. We will also define the terms that are important for understanding and using our service.
1.1. What is a general consumer loan agreement?
A general consumer loan agreement (hereinafter referred to as the “loan agreement”) is a contract between a borrower and a lender regarding a loan. The borrower is a consumer. The lender is a bank. The lender provides the borrower with a loan—that is, a specific amount of money for personal use. In return, the borrower must pay interest to the lender. The borrower must also repay the loan to the lender. The lender and the borrower agree in the loan agreement on how the borrower is to repay the loan. The borrower can repay the loan to the lender in installments. Or the borrower can repay the loan to the lender at the end of the contractually agreed term.
The law distinguishes between a general consumer loan agreement and a real estate consumer loan agreement. In a general consumer loan agreement, the borrower typically uses the loan for personal purchases, such as furniture, cars, or household appliances. However, the borrower may not use the loan to purchase real estate, such as land, houses, or apartments. For this purpose, a real estate consumer loan agreement must be entered into.
1.2. What happens before the loan agreement is signed?
Before we (as a bank) enter into a loan agreement with you (as a consumer), we, as a bank, must fulfill certain obligations. One important obligation is to provide you with certain information about the loan agreement. This information is referred to as “pre-contractual information” (VVI). The VVI includes the “European Standard Information on Consumer Credit.” Its standardized format helps you compare offers from different banks.´
In addition, we are required to check your creditworthiness. To do so, we will ask you for certain personal information, such as your income, expenses, and assets. Based on this information, we will conduct a credit check. We may only enter into a loan agreement with you if the credit check is favorable. We may determine that you are unable to repay the loan with your income or assets. In that case, we are not permitted to enter into the loan agreement with you. There may be another borrower in addition to you, such as your spouse. In that case, we will assess whether you can repay the loan together.
You have the right to receive a copy of the draft loan agreement. You do not have to pay us any fee for this. However, this applies only if we are certain that we want to enter into the loan agreement with you.
In most cases, when preparing the offer and conducting a credit check, we run a database query—for example, with Schufa. In doing so, we comply with data protection regulations. The database query may indicate that we must reject your loan application. In that case, we will inform you immediately and free of charge.
1.3 How is a contract concluded?
The contract is concluded once we have reached an agreement with you regarding the loan. We set forth all the terms and conditions of the loan in the loan agreement. These include, for example, provisions regarding the loan amount, collateral (see 1.5), interest (see 1.6), and repayment (see 1.9). The loan agreement also contains standardized provisions, i.e., general terms and conditions (GTC) or loan terms. The loan agreement must be concluded in writing. This means that you must personally sign the loan agreement with your name. We, as the bank, must also sign the loan agreement. There is an exception for us if the loan agreement is generated using an automated system. In that case, our signature is not required. The loan agreement may be signed using an electronic signature. In this case, you can insert a qualified electronic signature, which means signing it electronically with your name.
1.4 How does the loan disbursement work?
In the loan agreement, we typically set forth the terms under which we will disburse the loan to you (disbursement conditions). Often, disbursement is contingent upon your having arranged for collateral for the loan (see 1.5).
The disbursement amount does not correspond to the agreed-upon total loan amount (also known as the net loan amount). It also depends on the costs you incur in taking out or granting the loan. These may include costs that we or another company charge you for the loan or in connection with the loan. For example, premiums for residual debt insurance paid to an insurer may be deducted from the total loan amount. The disbursement amount is therefore calculated by deducting all costs from the total loan amount. The total loan amount, or net loan amount, is the maximum amount to which you are entitled under the loan agreement.
You are obligated to accept the loan. If you refuse to accept the loan, in whole or in part, you may be liable to us for damages. This form of damages is referred to as a penalty for non-acceptance. A non-acceptance penalty may apply if you no longer wish to take the loan and therefore do not draw down the funds from us (this applies only to fixed-rate loans; see 1.6.1). The non-acceptance penalty is calculated according to the same principles as the prepayment penalty (see 1.11).
1.5 What are the terms regarding collateral for the loan?
The loan agreement may be subject to collateral. This means that we may require you to provide collateral for our loan. For example, you can provide us with a car as collateral. Or you can assign your insurance claims to us. Collateral that encumbers real property—such as a mortgage—is not permitted. In such cases, a general consumer loan agreement cannot be entered into because there are specific legal requirements.
If we terminate the loan agreement because you are not repaying the loan as agreed, we may liquidate the collateral. This means, for example, that we can sell or auction off a car. We can cancel an insurance policy and demand that the insurance proceeds be paid to us. We will use the proceeds from the sale (sale proceeds) to repay our outstanding claims arising from the loan. If the sale proceeds are insufficient, you must pay the remaining amount. If the proceeds from the sale exceed your debt, we will usually pay you the excess proceeds (excess proceeds = proceeds from the sale minus outstanding debt and sales or auction costs). In the loan agreement or a separate collateral agreement, we will specify with you how and when we are permitted to liquidate the collateral.
If you own securities or wish to purchase securities with the loan amount, they will be deposited in a securities account with us and pledged to us as collateral. The market value of the collateral must be at least equal to the amount of the loan disbursed to you. Depending on the type of securities, we may also apply a value lower than the market value, as the market value of the collateral can change rapidly. We set forth the details regarding this in the pledge agreement.
1.6 What interest rates apply?
You must pay interest on the loan at an agreed-upon rate. This is why it is also referred to as “debit interest” or a “debit interest rate.” The debit interest rate is the cost of us disbursing the loan to you and making it available for a specific period of time.
There are two types of borrowing rates: the fixed borrowing rate (see 1.6.1) and the variable borrowing rate (see 1.6.2). We can agree on either a fixed or a variable borrowing rate with you. In most cases, a fixed borrowing rate is agreed upon.
A commitment fee (also known as commitment interest) may also be contractually agreed upon. In this case, you owe us commitment interest for the period until the loan is fully disbursed.
1.6.1 What is a fixed borrowing rate?
If we agree on a fixed borrowing rate with you, you’ll pay a fixed (constant) borrowing rate. The borrowing rate may be fixed for the entire term of the contract. However, it may also be fixed for a shorter period: the so-called fixed-rate period. With a fixed borrowing rate, the loan is also referred to as a fixed-rate loan. The interest rate is also referred to as a fixed interest rate.
The fixed-rate period may be shorter than the term of the contract. In this case, we will renegotiate the interest rate and the loan repayment installments with you. However, you may also terminate the loan and repay it at the end of the fixed-rate period.
1.6.2 What is a variable interest rate?
A variable borrowing rate is one that can change during the term of the contract. Of course, you should know how the borrowing rate might change. To that end, we agree with you on a reference interest rate that determines how the borrowing rate will change. A reference interest rate is an interest rate that is objectively and unambiguously determined, readily available, and verifiable by both the bank and you. It must be publicly available. The reference interest rate reflects the cost of borrowing in various markets. It is variable. This means it can change—that is, it can rise or fall. As a bank, we have no influence over the movement of the reference interest rate.
The loan agreement specifies when and under what circumstances the variable interest rate will change.
1.7 What is the annual percentage rate (APR)?
The annual percentage rate (APR) represents the total cost of the loan that you will have to pay. It is expressed as an annual percentage. The purpose of the APR is to enable you, as a consumer, to compare different loan offers.
1.8 What are the total costs associated with a loan?
The total cost of a loan consists primarily of the interest charged. In addition, there are all costs incurred by you in connection with the loan agreement that are known to us as the bank. These may include, for example, fees or commissions.
1.9 How does loan repayment work?
You are required to repay the loan. In the loan agreement, we will specify with you how you must repay the loan. There are several repayment options: the annuity loan (see 1.9.1), the amortizing loan (see 1.9.2), and the bullet loan (see 1.9.3).
1.9.1 What is an annuity loan?
When you take out an annuity loan with us, you make regular annuity payments. You can make these payments, for example, once a month, once a quarter, or once a year. Each annuity payment consists of a principal portion and an interest portion. The principal portion is used to pay down the loan, which means the outstanding loan balance decreases with each payment. The interest portion covers the accruing interest on the outstanding loan balance. Therefore, at the beginning, the interest portion of the payment is higher than the principal portion. The more payments you make, the more the interest portion decreases, and the principal portion of each payment increases. However, the annuity payment remains the same throughout the fixed-rate period.
1.9.2 What is an amortizing loan?
“Amortization” is the technical term for repayment. When you take out an amortizing loan with us, you repay the loan in equal amortization installments. Amortization payments are due monthly, quarterly, or annually. The monthly amortization payment, for example, is calculated as follows: The loan amount is divided by the number of months for which we provide you with the loan. Each installment you pay reduces the outstanding loan balance. In addition to the principal installment, you must pay an interest installment. This decreases over the term of the contract because you repay part of the principal with each installment. As a result, the interest you have to pay each month also decreases. Overall, this means your monthly payment will get smaller and smaller over time.
1.9.3 What is a bullet loan?
If you take out a bullet loan with us, you repay the loan in a single lump sum at the end of the term. Until repayment, you must pay us the interest due. The difference from an amortizing loan is that repayment does not occur during the term of the loan. Therefore, the installment contains no principal repayment. It consists entirely of interest. You can repay a bullet loan using your own funds, such as your assets. However, you can also repay it using a repayment substitute. Examples of repayment substitutes include a home savings contract (with a home savings loan) or a whole life insurance policy. You then make contributions to these in parallel with the loan agreement. We do not guarantee that you will be able to repay the loan in full using the repayment substitute. Therefore, you must be prepared for the possibility that you may also need to repay the loan using other means. Other means include, for example, savings or a cash payout from the maturity of an insurance policy. In addition, you must be prepared for the possibility that you may need to take out another loan.
1.10 What happens if payments are late?
If you make payments late, statutory late payment interest may apply. Additional late payment fees may also apply.
Please note: Failure to make payments can have serious consequences for you. For example, we may liquidate the collateral or take legal action against you. Or it may become difficult for you to obtain a loan in the future.
1.11 Is early repayment possible?
You may repay the loan early at any time, that is, before the agreed-upon repayment date. Early repayment results in a loss for us because we forgo interest payments. Therefore, we may stipulate in the loan agreement with you that you must compensate us for this loss. This means we will assert a claim for damages against you. This is referred to as an early repayment penalty. We calculate the amount of the prepayment penalty according to the principles established by case law. It depends on the remaining term of the fixed-rate period and the interest rate level at the time of repayment. Information on how the prepayment penalty is calculated can be found in the loan agreement and in the VVI (“European Standard Information on Consumer Credit”). There you will also find examples of the amount of an early repayment penalty. You should expect that the early repayment penalty may be very high. This applies in particular to the following cases: The loan still has a long remaining fixed-rate period. Or the general interest rate level has fallen since the loan agreement was concluded. However, the prepayment penalty is capped by law (legal basis: Section 502(3) of the German Civil Code). For loans with a variable interest rate, we do not charge a prepayment penalty. In these cases, you may repay the loan early, in full or in part, at any time.
1.12 What are the cancellation terms?
When terminating a loan agreement, a distinction is made between ordinary termination (see 1.12.1) and extraordinary termination (also known as termination for good cause; see 1.12.2).
1.12.1 When is ordinary termination possible?
In the case of ordinary termination, a notice period must often be observed. The notice period depends on whether a fixed interest rate or a variable interest rate was agreed upon. If a fixed interest rate applies, the notice period in turn depends on the term of the contract. The following applies to a fixed interest rate:
You may terminate the loan agreement at the end of the fixed-rate period. The notice period is 1 month. Fixed-rate period of 10 years: You may terminate the loan agreement 10 years after the loan has been fully disbursed or after the last fixed-rate agreement. The notice period is then 6 months. For the variable interest rate: You may terminate the loan agreement at any time. You must observe a 3-month notice period. If we have not agreed on any repayment terms with you, the following applies: You may terminate the loan agreement at any time. You are not required to observe a notice period.
1.12.2 When is termination for cause permitted?
In the case of extraordinary termination, no notice period is required. The conditions for this are: It cannot reasonably be expected that you, as a consumer, will continue to honor the loan agreement. Or it cannot reasonably be expected that we, as the bank, will continue to honor the loan agreement. There must therefore be good cause for the termination. This is why it is also referred to as termination for good cause. A common valid reason is when a consumer fails to make the agreed-upon payments. In such cases, the legal requirements for the bank to terminate the agreement on an extraordinary basis are met.
1.13 Is there a right of withdrawal?
If you enter into a loan agreement with us, you have the right to cancel it. If you cancel the loan agreement, you are no longer bound by it. Here’s how to exercise your right to cancel: You must comply with the cancellation period. The cancellation period is 14 days. It usually begins after the loan agreement is signed.
You may exercise your right of withdrawal verbally or in writing within the withdrawal period. You do not need to provide a reason. And you must direct the notice of withdrawal to us as the lender. Please note: You may have already received the loan amount by the time you withdraw from the loan agreement. In that case, you must repay the loan amount to us within 30 days of your withdrawal. Interest will accrue for this period, which is also referred to as daily interest. You can find the amount of this interest in the withdrawal information.
2. Your Options If You File a Complaint
Are you dissatisfied with our service? In this section, we'll explain your options if you have a complaint.
2.1 Customer Complaints
You can submit your complaint to us in several ways: in person, by phone, or in writing: to your advisor or directly to the branch that serves you in writing to: Joh. Berenberg, Gossler & Co. KG, Complaints Management, Neuer Jungfernstieg 20, 20354 Hamburg
For more information on complaints and dispute resolution, please visit https://www.berenberg.de/rechtliche-hinweise/joh-berenberg-gossler-co-kg/
2.2 Out-of-Court Dispute Resolution
Have you filed a complaint with us, but no resolution was reached? In that case, you have the option of out-of-court dispute resolution. As a bank, we participate in the dispute resolution process of the following consumer arbitration board: Ombudsman for Private Banks. There, you can contact the Ombudsman for Private Banks. The Ombudsman will handle your complaint by mediating between you, as a consumer, and us, as a company.
General information about the Ombudsman for Private Banks can be found at www.bankenombudsmann.de. Information on the exact procedure for the Ombudsman process can be found in the Rules of Procedure of the Ombudsman for Private Banks. We will be happy to provide you with the Rules of Procedure upon request. However, you can also view them online on the website of the Federal Association of German Banks (Bundesverband deutscher Banken e. V.) at www.bankenverband.de
You must submit your complaint in writing to the Ombudsman for Private Banks, for example by mail, fax, or email.
Address: Ombudsman for Private Banks
Office
PO Box 04 03 07
10062 Berlin
Fax: 030 1663-3169
Email: schlichtung@bdb.de
3. Features relating to the accessibility of our service
Would you like to know how our service meets the requirements of the Act on the Promotion of Accessibility (BFSG)? In this section, we provide information on the accessibility features of our service. Background: Among other things, the BFSG requires us to comply with the Web Content Accessibility Guidelines. These guidelines are designed to make web content as accessible as possible for everyone. This applies in particular to people with disabilities. The guidelines are based on the following four principles of accessibility:
Perceivability: As many people as possible should be able to perceive the information and IT functions.
For us, this means, for example, that we must ensure that alternative text is provided for images and graphics.
Operability: As many people as possible should be able to use the IT functions.
For us, this means, for example, that we must ensure our web content can be operated using a keyboard.
Comprehensibility: Web content should be readable and clearly understandable to as many people as possible.
For us, this means, for example, that we must present our web content in language that is as simple as possible.
Robustness: Web content must be as compatible as possible with so-called assistive technologies. Assistive technologies include, for example, programmes for reading aloud or enlarging web content, as well as those for converting speech to text.
For us, this means, for example, that we must comply with standards governing the use of assistive technologies, such as standards relating to the technical structure and labelling of web content.
By implementing these principles, our services meet the requirements of the BFSG.
3.1 Accessibility of services
These are the accessibility features of our service in connection with a general consumer loan agreement:
- We offer our service to you as follows: We can send you the pre-contractual information, the draft contract and other documents by post. Alternatively, we can make the documents available to you via online banking. You may also ask us to hand the documents over to a person who looks after you.
- You can access our service via various methods, using the following sensory channels: in-person collection at one of our branches, or in a readable (and voice-readable) format via online banking or the app.
3.2 Accessibility of this information
The following are the accessibility features of this information:
- We are providing you with this information via various access options, namely through the following sensory channels: collection in person at one of our branches, having it read aloud by one of our staff members, or via the bank’s website.
- The content of this information is written in easy-to-understand language. It does not exceed level B2 of the Common European Framework of Reference for Languages (CEFR). Please note: This does not apply to the actual service contract, the General Terms and Conditions (GTC) or the Pre-contractual Information (PCI) associated with the service contract.
- The layout of this information has a specific design: headings are in a style of the ‘Thunder’ font in various sizes. The size of the headings varies; body text is in the ‘ES Peak’ font. Care has been taken with regard to colour to ensure sufficient contrast between the text and background colours. In this information, the text is black on a white background.
3.3 Accessibility of documents relating to our services
These are the accessibility features of the documents relating to our service (including this information):
- The documents are perceivable. This means that you can view them on screen – with adjustable font size – have them read aloud, and adjust the volume whilst doing so.
- The documents are in PDF format or web-based. This format can be converted into other formats. This means the documents are available to you via multiple sensory channels.
4. Market Surveillance Authority
Do you feel that our service does not meet the requirements of the Accessibility Enhancement Act (BFSG)? In this section, we explain who you can contact in such cases.
The relevant authority is: the State Market Surveillance Authority for the Accessibility of Products and Services (MLBF). The MLBF checks whether economic operators are complying with certain legal requirements. As a banking institution, we are also subject to supervision by the MLBF.
If you encounter any problems whilst using our service, you can submit a complaint to the MLBF. The MLBF will then, where appropriate, take legal action against us (legal basis: Section 6 or Section 7 of the BFSG).
In your complaint, you may allege that we are in breach of a requirement under the BFSG. Alternatively, you may allege that we are in breach of a requirement under the Accessibility Enhancement Act Regulation (BFSGV). (The BFSGV was issued pursuant to Section 3(2) of the BFSG.)
The MLBF’s contact details are:
Address: Turmschanzenstraße 25, 39114 Magdeburg
Telephone: (0391) 567 4530
Email: MLBF@ms.sachsen-anhalt.de