Nordea customers unlikely to receive compensation after service disruptions in Finland

Customers affected by issues with Nordea’s services are unlikely to be entitled to compensation. According to the Payment Services Act, a service provider is only required to compensate for indirect damages if the harm is caused by the provider’s negligence. “The legislation stipulates that banks can limit their liability for indirect damages in contracts to instances of gross negligence on their part,” says Paula Hannula, director of the Finnish Competition and Consumer Authority (KKV).

Hannula emphasizes that she is commenting on the matter in general terms, noting that denial-of-service attacks are largely beyond a bank’s negligent controls. “It is crucial to assess the bank’s actions. Has there been conduct that exceeds the threshold for claiming compensation for such indirect damages?” The threshold for compensation for indirect damages is higher for banks compared to consumer protection in other areas.

In Nordea’s general terms, it states that it is not liable for damages if it can demonstrate that an unusual and unforeseen cause, which it could not influence, hindered its obligations and could not be avoided with due care. The conditions further state that the bank is responsible for indirect damages caused to account holders only when it fails to comply with obligations specified in the Payment Services Act or agreed upon in the account contract.

Jani Eloranta, head of Nordea’s personal banking division, mentions that the bank has a complaint form available on its website for customers seeking compensation. Over the upcoming week, Nordea plans to extend its customer service hours due to recent issues arising from a problematic update, not linked to denial-of-service attacks.

As for ensuring that similar problems won’t recur, Eloranta expresses confidence in the normalization of services, stating, “Our services are now functioning properly, just as they should.” Meanwhile, the KKV has received inquiries from customers regarding disruptions at banks, advising complaints should first be directed to the bank before contacting the Insurance and Financial Ombudsman.