Inflation, investment, account management, loan agreements: Monday evening at the district office of the Chamber of Labor in Perg, everything revolved around consumer rights in money matters. What is currently the best investment? Who is the best place to turn to in the event of damage? And what should you do if the insurance company refuses to pay? At the 20th edition of the “Caution, Trap” event – a cooperation between the Upper Austrian Chamber of Labor and the OÖ Nachrichten – all these questions and many more were answered by the Chamber of Labor’s consumer protection experts, Gerhard Augustin and Johann Kriegner.
The questions from the numerous visitors in Perg showed that many are unsettled by the current crisis situation and do not know how best to invest their money at the moment.
What would be a good form of investment for 10,000 euros that you don’t urgently need?
Gerhard Augustine: If you want to invest money, there are three important points to consider: First, am I willing to take the risk of capital losses? Secondly, can I make a long-term commitment or is it essential to have access to my money at all times? And thirdly: what earnings do I expect? You should therefore first clarify your own priorities before making a specific investment decision.
Would you recommend a fixed or a variable interest rate for a loan? And how do you assess future interest rate developments?
Gerhard Augustine: It is difficult to give a general recommendation, so you should look at it in each individual case. While the loan rate is automatically adjusted to the current interest rate level in the case of loans with variable interest rates, the loan rate in the case of loans with a fixed interest rate remains unchanged for the agreed period even if interest rates rise. After a long period of “negative interest rates”, interest rates have risen sharply in recent months. An end to this development is currently not in sight – hence the preference for fixed interest rates. If you have an existing loan agreement, you are bound by it.
During a strong storm, my neighbor’s construction site was not adequately secured. Material flew onto my property and caused damage there. Which insurance company has to pay in this case?
John Krieger: A storm is an overarching event where wind strength also plays a role as an argument for insurance coverage. A storm is only considered a storm above 60 kilometers per hour. The neighbor’s storm insurance only covers his own property. Who can be asked to pay in this case is the liability insurance of the damaging party. But only if you can accuse the neighbor of negligence by not securing his construction site. After all, your property was damaged by the storm.
In some cases, insurance will not pay. Does the person who sells the insurance also have an obligation to inform their customers about it?
John Krieger: No, the obligation to provide information does not go that far for the sellers of insurance companies. You have to differentiate: There are insurance representatives, agents and brokers. If you ask me who to consult in such a case, I would recommend a broker. This is always on the side of the customer and assesses which product is most suitable for the respective policyholder.
Can you withdraw from insurance if you no longer need it?
John Krieger: Two to three years ago, the legislator created a right of withdrawal of 14 days. When buying a product in the supermarket, you can weigh up exactly whether you really want to buy it. With insurance, this is different. Basically, you should read the terms and conditions in good time, even if they are very complex. Without giving a reason, you can withdraw up to 14 days after the conclusion of the contract. After this period has expired, it is not possible overnight.
questions from the audience
“What should I do if the insurance company doesn’t want to pay?” – Daniel Holzer
John Krieger: I often hear in initial consultations that insurance companies do not give a specific reason and withdraw from the insurance contract. I would insist on a written reason to take legal action against it.
“What makes more sense: pay back the loan or should we better go to safety?” – Melanie Schaumberger
Gerhard Augustine: I advise having about three months’ salary available as a nest egg to be prepared for unforeseen events. Otherwise, special loan repayments make economic sense. But you should take a close look at the loan agreement.
“How should I invest my money: in gold, silver or should I buy real estate?” – Harold Matzinger
Gerhard Augustine: The flight to real assets has advantages and disadvantages. Gold, for example, is very popular as a crisis precaution, but does not yield any interest and is also subject to fluctuations in value – just like real estate. I advise against betting everything on one horse.
“In the current time of crisis, advice definitely provides security”
Loss of income, high inflation, financial problems – many employees are currently facing major challenges due to the current wave of inflation. Above all, according to Chamber of Labor President Andreas Stangl, it is the stacked crises that are responsible for the displeasure: First it was the corona pandemic, now it is the wave of inflation and many private individuals have already used up their savings. “There are often problems with banks and insurance companies. Many ask themselves the question: are we being ripped off by these institutions?” says Stangl.
Seek timely advice
The most important thing in such times: “Don’t stick your head in the sand. Banks, social counseling centers and the consumer protection organizations of the Chamber of Labor are there to help with financial bottlenecks,” says Stangl. The employees at Consumer Protection are currently processing more than 33,000 applications. “Our team works a lot so that everyone gets their money on time,” says Stangl and wants to keep putting pressure on.
“We have the highest inflation for 70 years and at the moment politicians are not fighting it, they are fueling it. CO2 pricing is giving people a hard time, at some point they will no longer be able to afford it,” says Stangl. Many are already thinking very carefully about what they are going to buy. A situation that, according to Stangl, is no longer acceptable.
Source: Nachrichten
