Savings: the BNP Paribas bank sentenced to 187 500 euros for misleading commercial practice – The World

The reason: an investment (BNP Jet Warranty 3) offered by the bank in the summer of 2001 and which attracted some 11 000 subscribers. Indeed, the arguments in promotional inserts were attractive: Investors could expect a tripling of their implementation in ten years, or at least recover their investment regardless of the route of the Stock Exchange over the period

clearly, they were promised the moon. And strangely BNP Paribas failed to unhook them. Because after ten years not only the amount invested has not tripled, but presented as capital guaranteed was reduced by management fees and entry fees in life insurance contracts, used as investment vehicles .

Many investors who have filed a complaint in 2012 against the establishment, BNP Paribas offered to all subscribers to pay their management fees. Insufficient according to lawyers for the civil parties, who have asked for compensation for the damage suffered. On this point, the court was not to condemn the bank to pay the tripling of capital vaunted in advertising. “The court recognized that there was no deception on non-tripling of the capital of the question” , is satisfied M ^th Ludovic Malgrain, partner at White & amp ; Case for BNP Paribas.

Investors will not leave empty-handed. “The court sentenced BNP Paribas to pay the civil parties the entry and management fees that were deducted them, representing on average 10% of invested capital says M ^th Charles Constantine Vallet, which ensured the defense of eleven plaintiffs. this ruling opens the way for a new trial before the high court of Paris, as 11,000 customers had subscribed product can claim the same refund. “

Moreover, the Lecoq-Vallon & amp cabinet; Feron-Poloni launched in the wake of this decision, a group action, accessible on its website. “All subscribers to this aggrieved have interest to come forward because they can enjoy the same conclusions that criminal conviction. But be quick, because the limitation period (…) approach. This is the July 25, 2016, and the cluster approach must be initiated no later than June 30 “ says M ^th Feron-Poloni. BNP Paribas reserves “the possibility of appeal, especially as allowances relate to the management fee, while the bank has already paid the” says M ^th Malgrain, who has ten days to appeal.

What could be the cost to the bank? Based on the amount of outstanding subscribed via 11,000 life insurance contracts (253 million euros, according to the minutes of the Departmental protection of populations), BNP Paribas could, in theory, have to pay a little over 25 million, if all the subscribers got the same compensation as that received by the plaintiffs on April 11, 2016. Given that this investment was reported more than 18 million entry fee and management and a bad advertising …