WIBOR has become too popular for Poles. There will be a limit on the sanctions for free credit

Justice has been a relative concept in Poland for a long time, which is probably why Poles simply take matters into their own hands. What’s the harm in trying to get out of paying off a loan?

The Ombudsman drew attention to the growing number of complaints about loan agreements based on the WIBOR index, and to the increasing number of court cases using the so-called free loan sanction.

The WIBOR indicator is legal. Risks explained reliably and understandably?

Over the last year and a half, the office of the Commissioner for Human Rights (Ombudsman) has received 392 complaints about the activities of banks. Most complaints concerned loan agreements, especially those with variable interest rates based on the WIBOR index, which is the basis for calculating loan interest rates. Its amount depends on the economic situation in the country and the level of NBP interest rates.

Poles question the banking method of informing about the principles of operation of this indicator and the risk associated with changing the amount of installments. They are asking the Commissioner for Human Rights for support in ongoing court disputes, even though the legality of the indicator has not been ultimately challenged.

The structure and method of determining it turned out to be consistent with the EU regulation for the CJEU, which excluded the possibility of automatic invalidation of loan agreements concluded in Polish zloty. But although banks were obliged to explain to customers the technical details of the ratio’s creation, Polish courts can still examine whether, before signing the contract, the bank reliably and understandably explained to customers the risks associated with variable interest rates on the loan.

The principle of proportionality in SKD. A minor technical error is not enough

Complaints to the Commissioner for Human Rights regarding the so-called free loan sanction (SKD), which applies to loans up to PLN 255,550 or the equivalent in a foreign currency. Poles point to irregularities in loan agreements, including: loan costs or banks’ information obligations.

SKD is a way to deprive a bank or loan company of the right to collect any fees, commissions, interest and insurance if the bank has made errors in the consumer loan agreement or violated information obligations. Effect? Thanks to this, only the paid capital can be returned to the bank – without any additional costs.

The Ministry of Justice wants to limit the possibility of relying on SKD in courts. The government drew conclusions from the wave of Swiss franc cases that paralyzed district courts in 2017–2022. It proposes procedural changes in the Code of Civil Procedure and systemic changes in the new Consumer Credit Act.

Specialized compensation offices or debt collection companies will no longer be able to purchase such claims en masse and file lawsuits in one selected court. The new regulations are intended to disperse SKD cases among district courts throughout the country.

The Ministry of Justice also wants to move away from the situation in which a minor formal error by the bank allows the loan costs to be completely zeroed. The introduction of the principle of proportionality will change the rules of the game: the penalty for the bank and the benefit for the client will correspond to the real scale and gravity of the violation of the legal principles.