Building society terminating your contract? When it is allowed

Old building savings contracts with high credit interest are a thorn in the building societies' side, and some terminate them. Whether that is permissible depends above all on whether the contract has long been ready for allocation and you have continued to 'over-save' it.

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Your chances of getting your money back

According to the case law of the BGH, a building society may terminate a building savings contract that has been ready for allocation for more than ten years and was not called up (based on the borrower's right of termination under § 489 BGB). In this phase, the building society is regarded as the borrower.

Termination before readiness for allocation or shortly thereafter, by contrast, is often not permissible. The exact calculation of the periods is also worth checking; not every termination holds up.

What you should do now

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1. Clarify readiness for allocation
When did your contract become ready for allocation, and how long ago was that?
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2. Check the termination
Is the building society relying on a permissible basis (e.g. more than 10 years after readiness for allocation)?
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3. Object
If you consider the termination impermissible, object in writing and demand continuation.
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4. Get advice
The consumer advice center can check whether the termination of your contract is valid.

Frequently asked questions

May the building society terminate my building savings contract?

Under certain conditions, yes. The BGH has ruled that a building society may terminate a contract that has been ready for allocation for more than ten years and was not called up for payment/loan. Termination before or shortly after readiness for allocation, by contrast, is often impermissible.

What can I do about the termination?

Check carefully when your contract became ready for allocation and how long ago that was. If you consider the termination invalid, object in writing and demand continuation of the contract. The consumer advice center supports you in assessing whether the termination is permissible in your case.

Take action now

We put together the ready-made texts and the right places to contact for you.

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General information for self-help, not legal advice (RDG). In case of a high loss or uncertainty: contact a consumer advice center or a lawyer.