Austrian leasing lessors over alleged unfair contractual terms,
Leasing Life has learned.
The claimants are the association for consumer interests, Verein
für Konsumenten Information (VKI), and workers’ chamber
Arbeiterkammer (AK), acting on behalf of consumers tied into
automotive contract leases, the terms of which are believed to be
discriminatory.
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Austria’s consumer protection regulations stipulate that any
contract regulating the relationship between companies and their
customers must not include discriminatory elements, and are not
enforceable unless the customer has been specifically notified of
such terms.
In this case, according to a source: “It is understood
particular terms and conditions contained in standard car leasing
contracts are discriminatory towards clients. For example, the
lessee has to continue to pay 100 per cent of the leasing rates
even if the car has a factory fault, so the risk is shifted toward
the lessee rather than the lessor.”
Terms and conditions vary from lessor to lessor, and VKI and AK
have brought specific actions against Austria’s big hitters,
including Porsche Bank, Raiffeisen Leasing, BAWAG PSK Leasing,
Immorent, GE Money, VB Leasing, Hypo Süd Leasing, Oberbank
Leasing,Autobank, EBV Leasing, and BA-CA Leasing.
In all but one of the cases legal action is proceeding and all
are subject to appeal. Raiffeisen Leasing won on several points –
“around 40 per cent of its arguments” according to the source – at
the Commercial Court in Vienna in April, but lost on others, and is
currently appealing, it is understood.
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By GlobalDataLeasing Life contacted the lessors involved and the Association
of Austrian Leasing Companies, but none were able to comment as
legal proceedings are ongoing.
Asked to comment on why the actions are being brought now, VKI
said: “Because of VKI’s limited resources. We have to bundle our
activities to be effective. It was also the wish of the Ministry
for Consumer Affairs to focus on the leasing companies now, due to
the number of complaints in this field.”
According to the Leasing Life source, however: “VKI is
one of the most litigious organisations in Austria.Whenever a
consumer’s interests are allegedly discriminated against, it files
a law suit.”
In response,VKI said: “Both the VKI and AK have led extensive
negotiations with representatives of the leasing sector.
Unfortunately, and after a long process, no result could be found.
We do not know why the leasing sector refused a consumer-friendly
result to the talks.”
It is understood that no financial compensation is being sought
– the claimants instead are seeking the removal of the alleged
unfair terms and conditions in lessors’ contracts.
As to the outcome and timescales, VKI said: “We have sued [on]
all [alleged discriminatory] clauses, and we already have three to
four positive decisions at first instance. This could go on for up
to two years until we reach Supreme Court [Court of Appeal]
decisions.”
