While preparing to withdraw from the French market, the online bank ING has started to close the savings accounts of certain clients, without their consent. Does she really have the right?
Since December 21, it’s official. Present in France for more than 20 years, the Dutch bank ING has decided to close its French branch, lack of profitability. More precisely, its online bank intended for individuals: it intends to maintain its financing and investment activity aimed at large companies.
The precise date of this departure is not yet known, but it will not take place for many months. In the immediate future, ING is looking for a buyer for its portfolio of customers, estimated at one million. In the meantime, the latter were reassured: [Ils] continue to benefit from the usual online banking services. Customers and partners will be informed individually before any change concerning products and services, explained the communication from ING last Wednesday.
Online banking: what will become of ING’s French clients?
Some of them, however, had the unpleasant surprise to see their relationship with ING severed sooner than expected and without their agreement. The online bank has, in fact, confirmed to proceed, since last summer, the closing of certain accounts considered unprofitable.
Who are the affected customers?
According to ING, the customers concerned hold an Orange Savings Book (LEO) and no other product in the bank. This fiscalised savings booklet was the first banking product launched in France by ING in 2000. Thanks to rates very higher than those charged by traditional brands, it attracted many savers at the time in search of a return on their liquidity.
Since then, the LEO has lost its splendor: since January 1, 2021, it has yielded only 0.01%. On the same date, ING also introduced a ceiling of 100,000 euros, under penalty of being charged. In question, the rate situation. The European Central Bank (ECB) applies negative interest rates: the sums deposited by the banks of the euro zone are taxed -0.5%, explained ING AFP. In other words, they have to pay to deposit the money.
ING: how the Livret pargne orange became the worst passbook in France
According to the estimate of France Conso Banque, an association of banking users, at least 300,000 customers are still affected by these unilateral closings. They also concern Livret A, a regulated product, which the bank has not confirmed.
Is ING within its rights?
Absoutely. The agreement that binds a customer to his bank is a indefinite contract. Which means both parties can put an end to it whenever they want.
However, the bank must respect certain forms. Notify closure its client first, on paper or any other durable medium. Give him time to turn around, then give him a notice period. Two measures which, it seems, have been implemented by ING.
Can the bank close my account without explanation?
Discover the best free bank cards thanks our comparison
Does ING respect the notice periods?
France Conso Banque, which has launched a collective to defend ING customers, accuses the online bank of do not respect a notice period of 2 months. This period, however, only concerns deposit accounts, that is, those used to manage money on a daily basis, on which one has a bank card and a checkbook. In other words, what is commonly called a current account. This is not the case with LEO, which is a simple remunerated savings account, without associated means of payment.
For this type of account, case law requires the bank to leave a sufficient notice to his client, explains Jrme Lasserre Capdeville, HDR lecturer at the University of Strasbourg. In addition, concerning contracts concluded after October 1, 2016, continues this specialist in banking law, a legal basis for this latter solution can be found in article 1211 of the Civil Code: when the contract is concluded for an indefinite period, each party may terminate it at any time, subject to respecting the contractually stipulated notice period or, failing that, a reasonable period.
By giving customers one month’s notice, a period listed in the general conditions of their passbook, ING therefore seems in the nails.
Compare the offers of the best bank passbooks