Compensation of variable interest charged for revolving credit

The Dutch Institute for Financial Disputes (Kifid) previously ruled that a number of banks, including ABN AMRO, failed to follow the market rate adequately when calculating variable interest. Following this ruling, the Dutch consumers' association invited us to work with them to find a solution. We have established that market rates were not followed properly for some clients. In view of this, we are offering a compensation scheme for these clients. The details of this compensation scheme have been agreed with the Dutch consumers' association. ABN AMRO felt it was very important to work with the Dutch consumers’ association on coming up with an effective, workable compensation scheme.

We have established a compensation scheme in collaboration with the Dutch consumers' association (Consumentenbond). Under the compensation scheme, clients who had a revolving credit facility at any time on or after 2001 are eligible for compensation of the excess interest they were charged. The following matters were also agreed under the scheme: 

• ABN AMRO must use the methodology and market rates determined by Kifid. It is possible that a different market rate could be used for the Flexibel Hypotheek Krediet facility. Kifid is still dealing with legal proceedings relating to this product. With respect to this product, we will follow Kifid's ruling.
• A compensation threshold of € 50 applies. 
• The compensation is to be increased by adding a 5% markup.

In consultation with the Dutch Consumers’ Association, we had initially opted for a workable compensation approach starting 1 January 2008. This way, we could quickly compensate a large group by digital means. Various investigations in recent months have shown us that client data from the period before 2008 can also be retrieved or reconstructed, with some additional effort. We have therefore decided to offer compensation from 2001 onwards where possible. Where we do not have the complete data, we will do our best to make a good estimate. Where we do not have any data at all, we cannot make an estimate and therefore cannot offer compensation.

Although we have not been asked to do so by Kifid, we will increase your compensation by a 5% markup. The proactive, automated implementation of the compensation scheme may be advantageous or disadvantageous for you in terms of the amount of compensation you receive, and the 5% markup is intended to eliminate any disadvantages you might suffer. As we are providing this 5% markup, we will not pay statutory interest or provide any other additional interest compensation.

No, the compensation scheme also applies to clients of:

• ALFAM (wholly-owned subsidiary of ABN AMRO) ALFAM owns the following labels: DEFAM, Credivance and Alpha Credit Nederland 
• International Card Services (ICS) (wholly-owned subsidiary of ABN AMRO)

The compensation scheme applies to ABN AMRO's current and former retail clients who had a revolving credit facility with a variable interest rate at any time since 2001 (or who still have a revolving credit facility) and who also paid too much interest for that facility. In total, 15% of the clients and former clients who had the following products on or after 2001 are affected:

• Flexibel Krediet facility
• Privé Limiet Plus facility
• Student overdraft
• Flexibel Hypotheek Krediet facility
• Woningverbetering facility
• Internet Voordeel Krediet facility
• Vrije Leven Krediet facility
• Master's loan
• Spaarwinst Krediet revolving credit facility
• Repayment arrangement
• Ledenbewijzen Krediet facility
• Spaarwinst Krediet revolving credit facility
• Service loan
• Student account (with overdraft) 
• Studenten Krediet facility 
• Student overdraft repayment arrangement
• Studenten Krediet facility repayment arrangement
• Medisch Anticipatie Krediet facility
• Privé Limiet Plus facility - Private Banking
• Privé Limiet Plus facility - Young Professional
• Privé Limiet Plus facility - Young Professional repayment arrangement
• Revolving credit from ALFAM (wholly-owned subsidiary of ABN AMRO). ALFAM owns the following labels: DEFAM, Credivance and Alpha Credit Nederland.
• Revolving credit from International Card Services (ICS) 

The compensation scheme does not cover any of ABN AMRO's products for business clients or any other products for retail clients, such as the Rood Staan overdraft facility, personal loans, mortgages, and products linked to a reference rate such as Euribor, Libor or AAEBR. 

Moreover, the ICS Spread Payments Facility for credit cards is not covered by the compensation scheme.

If you are an ABN AMRO client and you are eligible for compensation, we will automatically send you a message. You do not need to apply for the scheme, even if you are a client and have already repaid your revolving credit. 

If you are a former ABN AMRO client and you believe that you are eligible for compensation, please sign up for the compensation scheme by calling +31 (0)88 - 226 26 09.

If your credit facility ended between 1 January 2001 and 31 December 2004 and you think you are eligible for compensation, please sign up for the compensation scheme by calling +31 (0)88 - 226 26 09.

We cannot actively approach you with an offer for compensation, because we do not have the details we need to calculate whether you are eligible. We are therefore asking you to sign up and give us the extra information need about your credit facility. We need at least the following information:    

• The start date of your revolving consumer credit facility and the interest rate on that date. You will find this on your credit facility agreement, for example.   
• The end date of your revolving consumer credit facility. You will find this on your credit facility agreement, for example, or on the last bank statement showing the credit facility and the one after that, which no longer shows it.   
• We can only calculate compensation for months for which you have a bank statement.
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If your credit facility ended between 1 January 2001 and 31 December 2004, please call us on +31 (0)88 – 226 26 09 (usual call charges apply).

If you are an ABN AMRO client and you are eligible for compensation, you will automatically receive a Bankmail or letter from us between December 2021 and December 2022. This means you do not need to contact us yourself. If you are a client and you have already repaid your revolving credit, you do not need to contact us yourself.

If you took out a loan with us, this means you paid interest every month. We agreed with the Dutch consumers' association that we should have used a different interest rate for this. Under the agreement reached with the Dutch consumers’ association, we have recalculated how much interest you should have paid since 2001. The amount of compensation is the difference between the interest paid by you and the interest you should have paid. Read on for full details of the compensation scheme and the calculation.

It is not yet possible for you to see how much compensation you will receive. If you are an ABN AMRO client and you are eligible for compensation, you will receive a letter or Bankmail stating the amount of your compensation between December 2021 and December 2022. You will still receive a letter if you are a client and have already repaid your revolving credit.

If you are an ABN AMRO client who is eligible for compensation and you have access to Internet Banking, you will receive a Bankmail between December 2021 and December 2022. When you receive the Bankmail, our offer of compensation will be available for you in Internet Banking or your ABN AMRO app, where you can accept the offer. Provided your compensation is not below the € 50 threshold, you will receive your compensation within ten working days as follows:

• Does the revolving credit to which your compensation relates still have an outstanding balance? In that case, your compensation will be used to reduce this balance.
• Is there sufficient compensation to repay your outstanding balance in full? In that case, we will transfer the remainder to you.
• Do you no longer have an outstanding balance? In that case, the full amount of your compensation will be transferred to you.
• Have you previously received money from us, such as any compensation, reduction and/or cancellation of your debt? If so, we will deduct the relevant amounts from the compensation. 

If you are an ABN AMRO client who is eligible for compensation and you do not have access to Internet Banking, you will receive a letter containing our offer of compensation between December 2021 and December 2022. You can return the signed offer to us. Provided your compensation is not below the € 50 threshold, you will receive your compensation within ten working days as follows:

• Does your revolving credit still have an outstanding balance? In that case, your compensation will be used to reduce this balance.
• Is there sufficient compensation to repay your outstanding balance in full? In that case, we will transfer the remainder to you.
• Do you no longer have an outstanding balance? In that case, the full amount of your compensation will be transferred to you.
• Have you previously received money from us, such as any compensation, reduction and/or cancellation of your debt? If so, we will deduct the relevant amounts from the compensation. 

It is important to us that all our clients are treated in the same way. We have agreed with the Dutch consumers' association that it will not charge you any fees for participating in the class action claim. ABN AMRO will pay the Dutch consumer association's fees instead. You do not need to take any action.

So far, all the banks that have indicated their intention to compensate their clients have said that they will generally follow Kifid's rulings. The compensation schemes set up by different banks may differ because banks have different products and conditions and may agree different arrangements for providing compensation. As we do not know the details of other banks' schemes, it is impossible to say precisely what the differences mean for individual clients.

The compensation scheme combines pros and cons. As we do not know the details of other banks' schemes, it is impossible to say precisely what the differences mean for individual clients.

Full and final discharge means that once you have accepted the offer you can no longer submit a complaint or claim against ABN AMRO that relates to the variable interest rate on your loan. In addition, you will not be able to receive a higher amount of compensation than the amount we are currently offering. This applies even if a court or disputes committee rules against the bank in class action proceedings or individual proceedings. Full and final discharge also applies in the case of ABN AMRO. We cannot withdraw or change the offer or start legal proceedings relating to the offer.

We want to be clear about the arrangements we agree with you. By granting each other full and final discharge, we both have certainty regarding the compensation. In addition, we avoid any legal conflict regarding the variable interest rate paid by you in the past.

We are implementing the compensation scheme in stages, from December 2021 to December 2022. Check ‘Compensation scheme timelines’ on this page to see when it is your turn. If you believe you are eligible for an offer and have not heard from us in the period you could have expected us to contact you, please give us a call: +31 (0)88 226 26 09 (standard call charges apply). You can reach us Monday to Friday from 9am to 5:30pm.

It’s important that you read through the personal offer carefully. The first page, entitled ‘Instruction and checklist’ tells you exactly what you need to do to accept your personal offer. 

If you don’t want to accept the offer, you don’t need to do anything.

Watch the video below to find out how to accept your personal offer, then sign it and return it to us. 

1. A completed and signed copy of the personal offer 
2. Copy of your valid ID 

• You can use the government's KopieID app to create a secure copy of your ID. 
• We need all pages of the personal offer, including the first page. 
• You can’t just send us the signature page.
• Any comments or notes you add to the personal offer or modifications you make are not valid. 
• Please keep a copy of the personal offer for your own records. 

We do this so that we can verify your identity. We want to be sure that you have signed the Personal Offer yourself.   Did you not take out the credit on your own? In that case, we also request a copy of a valid ID from your co-contractor(s). Naturally, we will handle your data confidentially.   

Important information:

• A valid passport or identity card is required as proof of identity. 
• You can use the government's KopieID app to make a secure copy of your ID. 
• It is important that name, date of birth, document number, validity date and signature are clearly legible. The rest of the data can be made unreadable. 

1. Have you recently moved and changed your address in Internet Banking, the ABN AMRO app or at one of our branches? Then you don't have to do anything and you will soon receive your Personal Offer at your new address.  
2. Have you recently moved and have you not yet changed your address via Internet Banking, the ABN AMRO app or at one of our branches? Then please do so, so that you can receive your Personal Offer at your new address.   
   
   

Read here how you can change your address in Internet Banking or the ABN AMRO app. 

If you have accepted the Personal Offer online, you may change your mind within 14 days of signing the offer (right of withdrawal). You can do so without having to state your reasons, free of charge. To contact us, please call +31 (0)88 - 226 26 26 (local charges apply within the Netherlands). We are available Monday to Friday from 8am to 5:30pm. You will receive confirmation as soon as your request has been processed.

The compensation scheme as agreed with the Dutch consumers’ association ‘Consumentenbond’ does not include any compensation for 'interest-on-interest’. On 25 January 2022, Kifid’s Arbitration Commission also ruled that no ‘interest on interest’ needs to be paid. In the judgement of 11 August 2022, the Kifid Appeal Committee determined that the 'interest-on-interest effect' must be taken into account. ABN AMRO has taken note of this publication and decided on 5 September 2022 to adjust the compensation scheme. 

Clients who have yet to receive their personal offer will receive a proposal that includes compound interest. Clients who have already accepted their personal offer and who qualify for an additional payment will be contacted automatically.

Full and final discharge means that once you have accepted the offer you can no longer submit a complaint or claim against ABN AMRO that relates to the variable interest rate on your loan. As a result, you will not be able to receive a higher amount of compensation than the amount we are currently offering. This applies even if a court or disputes committee rules against the bank in class action proceedings or individual proceedings. Full and final discharge also applies in the case of ABN AMRO. We cannot withdraw the offer, lower your compensation amount or start legal proceedings in that regard.

Pay attention: ABN AMRO has decided on 5 September 2022 to adjust the compensation scheme. Clients who qualify will now also receive compensation for compound interest (interest on interest). This also applies to customers who have already signed the Personal Offer including final discharge. Clients who have yet to receive their personal offer will receive a proposal that includes compound interest. Clients who have already accepted their Personal Offer and who qualify for an additional payment will be contacted automatically.

Do you feel that the arrangements covering your situation are not correct and that you are have been put at a disadvantage as a result, or are you concerned that sufficient consideration has not given to specific aspects of your contract or personal situation? If so, please call us on +31 (0)88 226 26 09 (standard call charges apply). We will be happy to discuss your situation and see if we can come up with a suitable solution.

In most cases, both of you will need to accept the Personal Offer. The Personal Offer will be addressed to both of you if that is indeed the case. Your name and that of your ex-partner will be stated in the address and at the top of the offer.    

• If you receive a personal digital offer from us through Internet Banking addressed to you and your ex-partner, your ex-partner will have received the same offer. We ask both of you to accept the Personal Offer.  
• If you receive a Personal Offer in the post addressed to both you and your ex-partner, this will be the only copy of the Personal Offer. In that case, you should personally contact your ex-partner to have him/her sign the Personal Offer. The agreement is valid only if both of you have accepted the Personal Offer.  
• If your ex-partner does not want to accept the Personal Offer, we recommend that you discuss this with your ex-partner. Unfortunately, it is necessary for both of you to accept the Personal Offer. The compensation cannot be split. 
  

If the loan has been transferred to your name only, only you will receive a Personal Offer. This is on the condition that the division of property has been accepted by ABN AMRO and has been processed in the bank’s records. If not, both of you will receive a Personal Offer that both of you will be asked to accept. You and your partner can make your own arrangements about how to divide the compensation.   

If you have a new partner, he/she will only be required to accept the Personal Offer if he/she is also mentioned in the contract. The Personal Offer will be addressed to both of you if that is indeed the case. Your name and that of your new partner will be stated in the address and at the top of the offer.