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 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.

If you are an ABN AMRO client who is eligible for compensation and you have access to Internet Banking, you will receive a Bankmail. 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 7 weeks 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. You can return the signed offer to us. Provided your compensation is not below the € 50 threshold, you will receive your compensation within 7 weeks 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.

According to a ruling by Kifid, you can expect that the interest rate for your revolving consumer credit will move in line with the market rate. We are adjusting the interest rate to bring it into line with Kifid's ruling. Once every three months, we will assess whether your interest rate needs to be adjusted. If necessary, we will raise or lower the interest rate. We will, of course, inform you about this first.

Do you have an account with ABN AMRO and do you use internet-banking at ABN AMRO? If this is the case, you will receive the (remaining) compensation-amount on this account. You do not have to do anything in this case. Do you not have an account known to ABN AMRO? Or do you not use internet-banking at ABN AMRO? If this is the case, you are able to submit an account-number on which you would like to receive the compensation-amount. This account needs to be registered on the name of the person to whom the Personal Offer is directed. On the fill-in form, you are able to find the field for Dutch account-numbers. Do you not have a Dutch account-number? Please contact our special team by telephone, they are able to help you with a different pay-out manner for your compensation amount. You can call us at 088 - 226 26 09 (usual Dutch calling charges). You are able to reach us from Monday until Friday between 9am to 5:30pm.

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.

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 9am to 5:30pm. You will receive confirmation as soon as your request has been processed.

It’s possible that delays in processing Personal Offers mean that you have received a reminder after signing and returning your offer. Please don’t worry. Your Personal Offer is still being assessed. You don’t need to contact us.

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. 

Have you taken out the consumer loan together with your partner?
If our records show that you have taken out the consumer loan together, are still ABN AMRO clients and are eligible for compensation, you will automatically receive a Personal Offer.
Sometimes we do not know yet that your partner has died. Please notify us if that is the case. For more information, please visit abnamro.nl/overlijden. You can also notify us of your partner’s death there. The heir, administrator and/or executor (person who settles the inheritance) will usually be given access to the deceased person’s banking services. This person will also receive the Personal Offer if he/she is eligible.   

Did your partner take out the consumer loan alone?
If you did not take out the loan together, you might still be able to claim compensation as a widow/widower. It is important that we have been notified of the death and that you are his/her heir.

• Does ABN AMRO not yet know that your partner has died?
  Please notify us as soon as possible at abnamro.nl/overlijden. A number of documents are used to determine who is the heir, administrator or executor (person who settles the inheritance) of the deceased. Below, you can read how to find out if you are eligible for compensation.
• Does ABN AMRO know that your partner has died?
  If we know that your partner has died and you are indeed an heir, you might be able to claim compensation. If your partner was a former ABN AMRO client and you believe that you are eligible for compensation, you can sign up for the compensation scheme by calling +31 (0)88 - 226 26 09.

We’ll get to work as soon as we receive the additional information you’ve sent. Processing compensation is a complicated, time-consuming business, as it’s different for every client. What’s more, a large number of clients are involved and we can’t deal with them all at the same time.      

The current processing time is 2 to 4 weeks.      

 Once you’ve received our confirmation of acceptance, compensation sums of €50 and above will be paid out within 7 weeks as follows:    

• If you owe an outstanding amount on the revolving credit facility for which you’re being paid compensation, we will deduct the compensation sum from this.  
• If the compensation sum is enough to completely pay off the outstanding balance, we will transfer the remaining amount to your account.  
• If you’ve already paid off the outstanding amount, we will transfer the compensation sum to your account. 
• If you’ve already received money from us, such as previous compensation, reductions or the cancellation of a debt, we will deduct these amounts from your compensation sum. 

Please call us on +31 (0)88 226 26 09 (standard call charges apply). You can reach on weekdays from Monday to Friday from 9am to 5:30pm.