Customers of the European Bank will be paid for the deceived trust

Denmark’s largest Bank, Danske Bank, will pay customers for their deceived trust after their investments in investment products and strategies, positioned as low-risk, turned into losses, writes Bloomberg.

Bente Nielsen, head of the private client service Department, said that about 900 people lost their funds due to insufficient information from the Bank. “We apologize and, of course, will pay compensation to the affected customers,” the top Manager said.

It is not specified which strategies and products are in question, but it is known that the European Bank advertised them as the most reliable and suitable for clients who prefer low returns with an appropriate level of risk. The amount of compensation to customers will be $ 16 million and should cover the losses incurred by them.

Over the past three years, Danske Bank has repeatedly found itself at the center of scandals. In 2018, its Estonian branch was suspected of laundering clients ‘ money through accounts opened with a credit institution. As a result of the investigation, the Baltic division was closed.

At the end of last year, the Bank faced similar current claims after it was found that it collected too high commissions from customers who used its trading app. Because of this, their overall financial result when investing in low-risk assets was also negative.

In early September, it became known that the Danish financial market regulator will conduct an investigation for overstating the full cost of credit for many customers.