With the doorstep-selling revocation law, those affected can still part with unprofitable investments years later – and invest in more sensible forms of investment.
To invoke the law, investors must prove that they were taken by surprise in what is known as a doorstep situation.
This is understood by lawyers to mean an unarranged visit to a private home or workplace, or an approach in means of transport or on the street.
A representative visits the consumer at his place of work and offers him the subscription to a fund and, in addition, the financing by means of a land charge or mortgage loan. The consumer accepts the offer. Actually, he should now be instructed about his right of withdrawal. If this is done in writing, the customer can only withdraw from the contract up to two weeks later. If no instruction is given, this right expires according to German law within one month after “complete performance”.
In plain English:
Once the loan is disbursed, the right of withdrawal would expire after one month, even without instruction. In the opinion of the European Court of Justice, however, the German legislator has not correctly implemented the EU Directive: The aforementioned one-month period is irrelevant. This means that anyone who was not informed in writing of their right of cancellation when they took out a mortgage loan can refuse to make any payment to the bank.
by Johannes Fiala, lawyer
Our office in Munich
You will find our office at Fasolt-Strasse 7 in Munich, very close to Schloss Nymphenburg. Our team consists of highly motivated attorneys who are available for all the needs of our clients. In special cases, our law firm cooperates with selected experts to represent your interests in the best possible way.
About the author
PhD, MBA, MM
Dr. Johannes Fiala has been working for more than 25 years as a lawyer and attorney with his own law firm in Munich. He is intensively involved in real estate, financial law, tax and insurance law. The numerous stages of his professional career enable him to provide his clients with comprehensive advice and to act as a lawyer in the event of disputes.
»More about Dr. Johannes Fiala
On these pages, Dr. Fiala provides information on current legal and economic topics as well as on current political changes that are of social and/or corporate relevance.
Arrange your personal appointment with us.
You are already receiving legal advice and would like a second opinion? In this case please contact Dr. Fiala directly via the following link.
(The first phone call is a free get-to-know-you conversation; without consulting. You will learn what we can do for you & what we need from you in terms of information, documents for a qualified consultation.)