“Interest rate change clauses in forms which grant the credit institution an unlimited power to change the interest rate in the case of long-term savings contracts are invalid.”
– Judgment from the German Federal Court of Justice of 17 February 2004 – XI ZR 140/03
The artificial intelligence semantha® supports German banks in checking existing savings contracts for invalid interest rate change clauses in order to be able to calculate and form appropriate provisions.
semantha® helps to precisely determine necessary provisions and thus realistically present the risk in the balance sheet. All this in a fraction of the time.
“The previous time-consuming review of our contracts and their documentation required 20 working days. The AI-based solution had done the same work in 2 hours. This resulted in a 98.75% reduction in the resources required for this – sensational!”
The ruling of the German Federal Court of Justice of 17 February 2004 (XI ZR 140/03) and the confirmed case law of 6 October 2021 (ref. XI ZR 234/20) means that banks must check all premium savings contracts for interest rate adjustment clauses and whether corresponding claims by customers are not yet time-barred.
If so, the banks concerned must decide whether they want to contact the customers in order to reach an agreement. In addition, the formation of any provisions should also be examined in this context.
Every premium savings contract must be examined. This is time-consuming and laborious. Too high a provision distorts the balance sheet.
semantha® helps to check the savings contracts and evaluate their effectiveness. Because: Without a qualitative individual evaluation, no real provision formation is possible!
semantha® reliably determines the contract and customer number from the contracts and optimally outputs the results.
Using the HotSpot function, semantha® immediately detects whether a premium savings contract is affected by the BGH ruling.