LG Konstanz Rules Bank11 Invalidated Auto Loan Rescission Right

Konstanz Regional Court (Landgericht Konstanz) has ruled that the contract forms used by Bank11 für Privatkunden und Handel GmbH in 2017 failed to initiate the statutory 14-day rescission right for consumer auto loans. The ruling, dated July 30, 2021 (case B 2 O 447/20), concerned a vehicle financing agreement from November 3, 2017, with a principal amount of €22,340.

Under German consumer law, individuals typically have a 14-day period to rescind such loan agreements after signing. However, this period only begins if the lender provides legally compliant information and documentation. In this specific case, the court found a flaw in Bank11's contractual wording regarding the start of the rescission period. The court identified an error in the clause stating that the period begins after contract conclusion but only after the borrower has received all mandatory information as stipulated by German law (§ 492 Abs. 2 BGB), including details on the loan type, net amount, and term.

The plaintiff, represented by the law firm HAHN Rechtsanwälte, declared rescission after their attorney reviewed the documentation. As the bank did not concede the incorrectness of its forms prior to the legal proceedings, the matter proceeded to court. HAHN Rechtsanwälte is offering a free initial assessment to customers of all German auto financing banks to determine if they have received non-compliant contract documents that could allow for rescission months or even years after the contract was signed.

This judgment highlights that other major auto loan providers, including Volkswagen Bank GmbH, BMW Bank GmbH, and Santander Consumer Bank AG, have also faced similar challenges regarding non-compliant contract forms, leading to successful rescissions for consumers.