Regulatory Alerts2023-02-15
Communications - Unilateral Modifications of Contractual Terms Motivated by Interest Rate and Inflation Trends
The Bank of Italy has instructed banks to carefully evaluate unilateral increases in current account fees, noting that recent ECB interest rate hikes may offset inflation-driven cost increases. The regulator emphasizes that such contractual changes must primarily aim to restore the original economic balance between the bank and the client, rather than simply passing on inflation costs. Customers retain the right to terminate contracts without penalty if they disagree with the new terms and wish to seek more favorable offers elsewhere.
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