A key judgment of the CJEU. Frankowicz from Getin gained important support

On May 8, the Court of Justice of the European Union announced a significant judgment on mortgage loans taken at Getin Noble Bank. The CJEU decided that forced restructuring of the bank should not be an obstacle to suspend the repayment of loan installments if the court was pending in court regarding the annulment of the contract.

Backstage

The case applies to franchisees who took out a loan at GNB in ​​2007 and filed a lawsuit for annulment of the contract due to dishonest conditions. After starting the bank’s restructuring in 2022, customers requested temporary suspension of repayment of installments until the case was resolved. Pursuant to the Polish Act on the Bank Guarantee Fund, such security against the bank in restructuring was not possible. The District Court in Warsaw asked the CJEU asking for the compliance of the provisions with EU law.

The CJEU decided that EU regulations, including directives with dishonest conditions in consumer agreements, require effective consumer protection. According to the Tribunal, refusal to secure when the contract may be invalid may violate EU standards. It was noted that even during restructuring, the protection of customer rights should be provided and the actions of the national court cannot be blocked by national regulations.

Breakthrough

The judgment concerns a situation where the National Court considers that the contract may conclude unfair provisions, and yet – due to the act – it may not suspend the obligation to repay. The CJEU clearly stated that such a limitation is contrary to EU law.

Let us remind you that the restructuring of Getin Noble Bank began in September 2022. Velobank, appointed by eight commercial banks, took over the gold assets and GNB deposits, but loans associated with foreign currencies were excluded from the process.