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Student unions hit hard as membership drops

Student unions at Sweden's universities have been hit hard financially since compulsory membership was abolished on July 1st despite more than a billion kronor of support from universities.

Several student unions have seen their budgets fall by half since the abolition of mandatory fees, resulting in the scrapping of a number of their activities, newspaper Dagens Nyheter reported on Monday.

Many unions receive financial support from their universities or colleges in order to continue operations since the abolition of mandatory membership.

As a result, unions have become depend on the universities, which is a problem, said Beatrice Högå, chairwoman of the Swedish National Union of Students (Sveriges Förenade Studentkårer, SFS). The organisation’s mandate includes monitoring the rights of students and ensuring that instruction remains at a high quality.

“We will now scrutinise the educational institutions while receiving financial support from them at the same time. This is something that threatens independence. State subsidies are unfortunately not enough to carry out a quality job,” she said.

As a result, the unions are unable to spend as much time addressing student questions when they have to focus on recruiting members, according to Högå. However, the organization has not taken a position demanding the reimposition of mandatory student union membership.

“We think that the abolition should have been done in a more responsible way. We needed a longer adjustment period to ensure the influence of students continues to work. That is what we are defending,” said Högå.

According to Minister for Higher Education and Research Tobias Krantz, the abolition of compulsory membership is an important matter of principle.

“Students should have freedom of association. They have the right to decide for themselves whether they want to join a student union or not. In addition, I am convinced that the power of student influence and legitimacy will increase if it is voluntary and not through coercion,” he said.

As a result, the unions now have to find new ways to attract members, said Krantz.

“When I travel around the country’s universities and colleges, I see that many are working creatively and are engaged in developing activities and attracting more members voluntarily. Many are positive to this and want to find new solutions,” he said.

“The unions must think about how they can be more attractive to students and others who can give money to them,” he added.

He rejected, although not entirely, the possibility of increasing state funding for student unions.

“We have just implemented the reform, so obviously we will follow developments closely,” he said.

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Why a German court decision means you could be entitled to compensation from your bank

Germany’s federal high court has ruled that the Postbank is not allowed to raise fees without the explicit consent of a customer. The ruling is likely to have consequences for almost all German banks. Here’s how you can benefit from it.

Why a German court decision means you could be entitled to compensation from your bank
Postbank. credit: dpa-Zentralbild | Jens Kalaene

The federal High Court (BGH) announced on Tuesday that it was not permissible for Postbank to change its terms and conditions based on a clause which stated that the customer’s consent would be assumed unless they expressly rejected the new terms.

The BGH ruled that “clauses in a bank’s general terms and conditions are invalid that assume the customer’s consent to changes in the general terms and conditions.”

The national consumer rights organization (VZBZ) had taken the bank to court because of the clause.

Postbank is far from the only bank to have such a clause, according to Der Spiegel. Most German banks have either exactly the same clause or one that has the same effect.

The clauses have been used by banks to increase account fees without expressly gaining the consent of the customer.

The ruling, coming from the country’s highest court, will have a wider impact than simply on this specific case.

According to the website finanztip.de customers can now reclaim all bank fees that have been introduced without the express consent of the customer since the start of 2018.

In other words, if you opened a bank account without having to pay fees for it and the bank subsequently started charging fees, you are likely to be entitled to compensation. The only circumstances under which you are not entitled to such compensation are when you signed a document giving your express consent to the new fees.

Finanztip has created a model letter (in German) that you can use to claim the wrongly charged expenses from your bank. They also say that you are entitled to charge interest on the fees.

According to Der Spiegel, two things are likely to happen when you request repayment from the bank.

Either the bank will say that it was surprised by the decision but will immediately consent to the repayment. It will then inform you of new fees to be paid on your account and ask you to sign a consent form, stating that your account will be cancelled if you do not do so.

You can either sign the form or look for a cheaper account elsewhere.

It is also possible that the bank will claim that the ruling does not cover the specific fees that were charged on your bank account.

In this case you can contact the bank ombudsman and request that they pursue the case for you. There are no costs involved in recruiting the services of the ombudsman.

SEE ALSO: How post-Brexit bank changes could affect British people in Germany

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