Bureaucracy: VR Bank Bamberg-Forchheim urgently demands clarity!

Bureaucracy: VR Bank Bamberg-Forchheim urgently demands clarity!

Joachim Hausner, Chairman of the Board of Directors, met in an exciting discussion about reducing bureaucracy in the consumer sector VR Bank Bamberg-Forchheim, and the Bundestag member Dr. Konrad Körner. The conversation aimed to discuss suggestions for reducing the information burden on customers. Hausner made it clear that the express consent of customers to changes to the General Terms and Conditions required by the Federal Court of Justice ruling in April 2021 would mean considerable additional effort for them.

The new regulation forces banks and service providers to ask for consent, which in some cases has even led to the termination of contracts, for example with streaming service providers. “The burden of response is passed on to consumers,” explained Hausner, while denouncing the high costs incurred by the bank due to the need for written consents. The material costs per approval campaign amount to around 100,000 euros, which puts a heavy burden on older and less internet-savvy customers in particular.

Paper flood problems

As Hausner further explained, VR Bank has made three adjustments to the terms and conditions since the ruling, which theoretically led to an enormous amount of paper consumption of around 15 million pages. The bank is therefore calling for legal clarification so that contractual changes can be made again through an objection solution. Dr. Konrad Körner showed understanding for this criticism and noted that similar challenges also face other service sectors.

What is exciting is that the discussion about reducing bureaucracy is currently trending. The Federal Ministry of Justice has published a draft law to reduce bureaucracy in the consumer dispute resolution process. The aim of the reform is to increase the willingness of entrepreneurs to participate and to facilitate access to consumer dispute resolution. Federal Minister of Justice Dr. Marco Buschmann emphasizes how important it is to relieve this area.

Economic impact of bureaucracy

If you look at the economic conditions, the bureaucracy in Germany entails enormous costs. According to an article in the daily news A survey by the Ifo Institute reports that 90% of companies have been affected by increased bureaucratic burdens since 2022. The German economy is suffering from these high requirements, which cost hundreds of billions of euros. One example is sustainability certifications, which can cost 20,000 euros annually without demonstrable problems.

Politicians seem to be under pressure here, because reducing bureaucracy could be a key to increasing the competitiveness of the German economy. Demands for more efficiency and a reduction in legal requirements are becoming louder and louder. For example, the Union provides for the “one in, two out” rule, which states that for every new law that creates a burden, two old laws should be abolished.

In summary, it can be said that there is a clear need for action both in the banking sector and in many other sectors. The challenges facing businesses and consumers require a sound policy response so as not to stand in the way of the economy's valuable good hand.