Riester pension: Consumer advocates sue against pension cuts - fundamental judgment sought.

Riester pension: Consumer advocates sue against pension cuts - fundamental judgment sought.

According to a report by www.versicherungsbote.de,
The citizens' movement Finanzwende and the North Rhine-Westphalia consumer advice center want to take action against unjustified pension cuts in Riester pensions. You already have legal success and are planning to file a representative action to obtain a landmark judgment. Particularly affected are providers of unit-linked Riester pensions, such as Zurich Deutscher Herold, which, according to the Cologne Regional Court, made unlawful pension cuts that violated contractual clauses.

The unlawful reduction of the pension factor by insurers like Zurich is a central issue in this case. These cuts occur when investments develop unfavorably. However, the Cologne Regional Court has decided that reducing the pension factor is inadmissible and that pension factors specified in the insurance certificate cannot be permanently adjusted without certain requirements.

Zurich rejects the allegations and argues that only a highest court ruling by the Federal Court of Justice can clarify whether the reductions in pension factors are permissible. She has withdrawn her appeal in order to refer to another case against Allianz that appears more suitable for a fundamental decision. The North Rhine-Westphalia consumer advice center has warned Zurich Insurance and is threatening to file a representative action if the company does not give in.

This legal dispute not only affects Zurich, but could also affect other providers such as Allianz and Axa, which have similar clauses in their contracts. The citizens' movement Finanzwende and the consumer advice center of North Rhine-Westphalia continue to fight against unjustified pension cuts for Riester pensions.

According to experts, such legal disputes and consumer lawsuits can lead to significant losses of image and trust for the insurance companies concerned. As a result of such incidents, customers could lose trust in Riester pensions and other unit-linked insurance products. It is therefore important that insurance companies act transparently and customer-oriented in order to avoid legal disputes and increase consumer trust.