Swiss franc borrowers are pushing ahead. Over 100 thousand settlements already. Work is underway on an important act

The Ministry of Justice announced on June 25 this year that it is working on preparing a draft Swiss franc law, which is to support the conclusion of settlements and simplify and speed up court proceedings in these cases. The scale of disputes with borrowers is proof that such a law is needed. Some clients go to court, others reach a settlement at the pre-trial stage. They feel confident because their arguments have already been recognized in previous years by foreign institutions, including the Court of Justice of the EU.

Banks flooded courts with lawsuits demanding the return of capital

Banks cannot demand compensation from borrowers for using capital after the invalidation of a loan agreement – this is the main thesis of last year’s ruling of the Court of Justice of the EU, which thousands of Swiss franc borrowers were waiting for. Borrowers had already received confirmation that many banks used defective contracts that violated customers’ rights. Of the 9,596 judgments issued in “swiss franc” cases in 2022, 9,320 were favorable to borrowers (97.1%), and only in 256 cases did the court agree with the banks (2.7%).

At the end of 2021, the first lawsuits from banks began to be filed with the courts, demanding that Swiss franc borrowers be ordered to repay the capital and receive compensation for using it. In this way, the banks want to interrupt the three-year limitation period. – The lawsuits are a consequence of the ruling of the Supreme Court, composed of seven judges, in May 2021, in which it was decided that the three-year limitation period for bank claims is counted from the moment the client submits a statement that he does not agree to continue the contract due to abusive clauses – explained Tadeusz Białek, then vice-president of the Polish Bank Association, and since April 2023, president of this institution.

A law is needed. Work is ongoing

Not all clients want to pursue their rights in court for months and decide to reach a settlement. The President of the Polish Bank Association explained that at the end of May, 97 thousand Swiss franc agreements were concluded, so assuming that the trend from May this year, when 3 thousand 515 agreements were concluded, was maintained, at the end of the second quarter the number of agreements exceeded 100 thousand.

Białek reminded that a special team is working to prepare a model settlement model for Swiss franc loans. “I think we will actually be able to develop such a standard settlement model,” he said. The act is to support the conclusion of settlements and simplify and speed up court proceedings in these cases, which are conducted by the Ministry of Justice.

The head of the Polish Bank Association explained that the special team, apart from representatives of the Ministry of Justice, also includes representatives of the Polish Financial Supervision Authority, the Office of Competition and Consumer Protection, the Financial Ombudsman, the Ministry of Finance, as well as representatives of the consumer side — the Stop Bank Lawlessness Association and the banking side, i.e. the Polish Bank Association.