Czech National Bank Fines Československá obchodní banka (ČSOB) CZK 3 Million for Deceitful Poštovní spořitelna Marketing

Prague - The Czech National Bank (CNB) imposed a CZK 3 million fine on Československá obchodní banka, a.s. (ČSOB) for misrepresenting its Poštovní spořitelna brand as an independent bank.

ČSOB’s Misleading Marketing Practices

The CNB announced that ČSOB had violated consumer protection laws by deceiving the public into believing that Poštovní spořitelna was a separate banking institution, when in actuality it was a subsidiary of ČSOB.

“Poštovní spořitelna was marketed to consumers as a standalone banking institution.” - Tomáš Zimmermann, CNB Spokesperson

The false impression created by ČSOB’s marketing practices breached the Consumer Protection Act, leading to the financial penalty.

The Fine and Correstive Action

The fine, which took effect on September 14, 2010, was imposed to hold ČSOB accountable for their deceptive business practices related to Poštovní spořitelna.

The CNB further instructed ČSOB to cease its misleading conduct towards clients and to disclose the true relationship between the two banks.

ČSOB’s Response

In response to the CNB’s decision, ČSOB expressed its remorse for any confusion caused and its intention to rectify the matter.

“We will take immediate corrective action to clarify the real relationship between ČSOB and Poštovní spořitelna to our customers.” - ČSOB Statement

The bank also reaffirmed its commitment to adhering to all relevant regulations moving forward.