A businessman from Narva defeated a journalist in court on March 23, 2023, regarding a case involving a terminated customer relationship. The case centered on a consumer’s action against Swedbank for the termination of their settlement account and payment card. The bank cited concerns about the client’s association with two Narva-based companies deemed to have a high money laundering risk. The Constitutional Court of the Republic of Estonia agreed with the district court’s ruling, stating that the ordinary termination of the basic payment service contract was not permitted. The court determined that an extraordinary termination, requiring justification and potential objection from the consumer, was necessary. Interpreting the Estonian Code of Civil Law in accordance with the EU directive, the court emphasized that the bank’s right to unilateral termination exists only in exceptional circumstances, such as money laundering or financing of terrorism, or violations of crime investigation and prevention legislation. The directive also stresses that such concerns should not be used to reject legitimate customers. The court noted that basic payment services are essential in modern times, highlighting the difficulties faced by individuals without access to a bank account. Consequently, credit institutions are obligated to provide these services to consumers under both the EU directive and the Estonian Code of Civil Law. Topics: #bank #court #businessman Post navigation Andrus Toss is to be the new head of the municipal administration in Jõhvi Two cars drove into a ditch in Lüganuse
This legal battle highlights potential issues with banks’ customer practices and scrutiny of their operations. Reply
What were the specific concerns raised by Swedbank that led to the termination of the customer’s account? Reply