First polish court ruling fully in favor for borrowers with loans in Swiss Franc

On 29th April 2016, The District Court for the Capital City of Warsaw (case no. VIC 1713/15) ruled that the currency clause in loan indexed to CHF is invalid from the time of credit agreement conclusion. This means that the loan should be granted in PLN currency, which applies also to payment of all installments. As a result, the contract on a loan should be indicated in PLN from the beginning. Under the Court decision Bank is obligated to recover overpaid sums. What is very important for creditor LIBOR rate clause remains in force, which is significantly lower than WIBOR.

Polish Courts recently issued rulings in favor for Swiss Franc loans borrowers. However, in the vast majority they were connected with spread rate unduly determined by Polish banks.  The ruling from April 2016 has precedent character as the Court issue the most favorable decision for borrowers.

It has to be noted that the ruling is more supportive for borrowers than any proposition of previous parliamentary term and is fully consistent with President Andrzej Duda last proposals – heavily criticized by representatives of the Polish commercial banks and current opposition.

The ruling is not final and the bank announced that an appeal would be filed.

Should you are interested in restructuring your loan agreement concluded with Polish bank or any further information do not hesitate to contact us via form.

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