DNB, or Den Norske Bank, is sued by the Swedish Consumer Ombudsman.
The bank is accused of having marketed private leasing at a fixed cost as a safe and predictable alternative.
In fact, the leasing cost was variable, and the bank had the right to increase the monthly price based on several different reasons.
Tesla launches its sportiest model ever
“A really cold shower” in private leasing format
When the interest rate hikes came, it dawned on many that the fixed monthly cost of their lease wasn’t actually fixed at all, and for some the costs increased sharply.
The customers who in this situation tried to get out of the leasing agreement were informed that early termination would entail a cost of 40 percent of the remaining leasing fees. As a leasing agreement often runs for three years, it could involve a lot of money.
– A real cold shower. The selling point was precisely the security of having a fixed monthly cost and then suddenly the costs go away. The Consumer Ombudsman believes that the bank used both misleading and unfair contractual terms, says Pär Magnusson, process advisor at KO.
Should the old Saab factory build the new electric car? Now comes the message
“Currently” fixed cost
The fact that DNB has been able to display “fixed” leasing costs has to do with the discreet use of the two letters “f” and “n”.
“Two letters, f and n, in the agreement are what the bank states would show that the fixed monthly cost is not fixed at all. According to DNB, it should be interpreted as meaning that the monthly cost is currently a certain amount, but that it is not a fixed cost,” writes the Consumer Ombudsman.
– Completely incomprehensible and deeply unserious. When the entire marketing emphasizes the security of receiving a fixed monthly cost, the bank thinks it is enough to write “fn” to absolve itself of the promises, says Pär Magnusson.
The Consumer Ombudsman now wants the Patent and Market Court to examine whether DNB has used unfair and misleading terms.
In total, it concerns around 30,000 leasing agreements where customers have been hit by unexpected increases in their leasing costs. Since 2020, KO has received around 70 complaints and questions, as well as around 50 notifications, concerning DNB and their leasing agreements.
The Emily GT owner backs down – about the old Saab factory
This is how fraudsters try to trick you – with a note on the windscreen