Bank in court over 'misleading' ads
Caisse d'Epargne faces criminal charges for promising an account that would double money in six years
A FRENCH bank that promised to double investors' money in just six years has become the first in the country to face criminal charges for misleading advertising.
The Caisse d'Epargne's Doubl'ô account, which launched in 2001, attracted almost a quarter of a million customers nationwide.
The advertising for the account said capital invested in the account would double by the maturity date in 2007. An asterisk next to the claim said: "Subject to conditions indicated by the Commission des Opérations de Bourse" - the French financial services authority at the time.
According to Le Parisien, when the maturity date arrived, customers found their account balance had not grown at all.
In fact it had shrunk because the Caisse d'Epargne had deducted 1-2% in bank fees - meaning customers had lost money over the six-year term.
A retired woman from Saint-Etienne in the Loire has begun the legal action against her regional branch of the Caisse d'Epargne.
The claimant's lawyer Daniel Richard said the court action would force the bank to explain itself.
He told the paper: "The bank was making money while its customers lost out."
Bank users' association Afub said it hoped the Caisse d'Epargne would negotiate a compensation deal on a national level.
Many customers closed other savings accounts to transfer their funds to Doubl'ô, effectively losing six years of interest.
A judgment is expected within six months. The Caisse d'Epargne said the account terms were worded to guarantee the return of the initial capital and this was honoured.
