Today's Süddeutsche Zeitung published a verdict on O2's General Rules of Business (AGB) regarding its custom of deleting credit on pre-paid cards if they are not topped up within twelve months of the initial purchase. The same goes for any credit left at the termination of the contract. O2 is also no longer allowed to charge a "blocking fine" according to the valid rates at the time as this could be seen as lump sum damages (pauschalierter Schadenersatz) which is prohibited by German law.
O2 had argued that the administration of unused mobile phone credit results in considerable expenses as to infrastructure, personnel and handling. Also, unused mobile phone lines blocks the numbers for new customers. The sim card can only be deactivated by deleting the credit; alternatively, the credit must be transferred to a separate account and kept there until claimed or in accordance with the statute of limitation. The costs for this procedure would be unacceptable.
O2 says it warns each customer with several SMS's and once in writing before the credit is deleted.
The District Court (Landgericht München I) ruled that the customer advances the money for the credit expecting a return of services; any deletion of the credit represents a disadvantage to the customer. The expenses for the administration of unused credit are not excessive.
O2 is expected to appeal the verdict in order to receive an Appellate Court decision. So any of you with unused credit on your O2 card - you are still in danger of losing it as the verdict is not yet legally binding.