Swiss franc borrowers will gain new rights. The government adopted the law

The Council of Ministers adopted a draft law regarding loans denominated and indexed to the Swiss franc. According to the government, the new regulations are intended to significantly improve the situation of consumers in disputes with banks and improve the functioning of the justice system. The draft was prepared by the Civil Law Codification Commission and was submitted for discussion on the initiative of the Minister of Justice.

New regulations

Deputy Minister Arkadiusz Myrcha emphasized that the regulations will introduce automatic security for consumer claims, thanks to which borrowers will not have to worry about the enforcement of installments during the process. The change will apply not only to lawsuits currently filed, but also to those filed before the Act entered into force.

The new regulations apply to both loans and advances indexed or denominated in CHF, as well as contracts transformed into indexed loans by annexes. The scope of their application will also include the heirs of borrowers, persons who guaranteed the repayment of the obligation or are materially liable. The final decision on the application of the Act in a given case will be made by the court.

The project provides for a number of process simplifications. Swiss franc cases will be able to be considered in closed sessions, and the parties will be able to submit written testimony. Witness hearings will be able to be conducted remotely, even despite the parties’ objections. Court referendaries will be able to discontinue proceedings after the lawsuit or appeal is withdrawn.

The key solution is to secure consumer claims as soon as a copy of the lawsuit is delivered to the bank. From that moment on, the obligation to repay installments will be suspended. Consumers will not be able to be entered in the registers of debtors for Swiss franc loans, and existing entries will be deleted.

Settlements between the parties

The Act also introduces new rules for settlements between parties. Banks will be able to invoke the allegation of set-off until the end of the proceedings in the second instance. There will also be provisions facilitating counterclaims, which will enable simultaneous settlement of the claims of the borrower and the bank. An incentive to end the dispute amicably will be a partial refund of court fees – up to 50% if the case is withdrawn within six months of the entry into force of the Act.

The project also provides that the Supreme Court will be able to refuse to consider banks’ cassation appeals in Swiss franc cases if there is no need to interpret the regulations or there are no discrepancies in the case law. This is intended to significantly relieve the burden on the courts and speed up the resolution of consumer cases.

The new regulations will not cover land and mortgage register, group, anti-enforcement or bankruptcy proceedings. The Act will enter into force 14 days after publication in the Journal of Laws.