KNF chairman Jacek Jastrzembski confirmed that an act is being prepared to eliminate the ambiguities that formed the basis of the dispute between franchisees and banks. Business Insider has determined what provisions may be included in it. Soon the CJEU will announce an important ruling that will resolve many doubts.
A Business Insider reporter found that the Polish Financial Supervision Authority has been working for some time on the prerequisites for a law on Swiss francs, which is designed to settle disputes between borrowers and banks. On Wednesday, KNF chairman Jacek Jastrzembski confirmed that such a decision was being prepared. What are these solutions?
Frank argues. Act on the circumstances of an unfavorable decision for banks in the CJEU
The service determined that the law will regulate the issue of mortgage payments on housing loans denominated or indexed in foreign currency (Swiss franc). The draft must be ready for adoption in case of a negative decision of the Court of Justice of the European Union for the banking sector - case C-520/21 on the so-called. capital contributions.
In mid-February, the CJEU Advocate General issued an opinion unfavorable for banks on this matter. This was a response to the doubts of the Warsaw court judge as to whether the parties, in the event of invalidity of the contract due to the conclusion of unfair conditions, in addition to compensation (the bank returns the installments, fees, commissions and insurance premiums, and the borrower - the capital and statutory interest for delay with the time of the claim for payment) may also claim any other benefits, including receivables.
The opinion of the CJEU Advocate General alarmed the Polish banking sector
Advocate General Anthony Michael Collins said that Directive 93/13 does not prohibit a consumer from claiming additional benefits after the termination of the contract, but the bank does not have such a right. We write more about this opinion here.
The opinion of the Ombudsman preceding the decision of the CJEU is not a source of law, but practice shows that the decision often coincides with it. If the CJEU reiterates the Ombudsman’s findings, Polish banks that issued Swiss franc loans based on contested contracts will have to face a wave of lawsuits and, as a result, high compensation.
To avoid such a scenario, Polish institutions began to prepare laws that would minimize the effect of massive lawsuits.
What can the franc law provide for?
The bill provides that all banks will have to offer borrowers currency conversion based on the rules proposed in December 2020 by the chairman of the Polish Financial Inspectorate. The result of such a step would be the equalization of the position of buyers of the zloty and the currency. According to our sources close to the oversight, this act will most likely not lead to the “automatic” conversion of mortgage loans into zlotys.
Business Insider reports that the bill provides that if a borrower, for whatever reason, does not want to convert the loan, he can regulate his relationship with the bank by replacing exchange rate clauses in the contract, for example, with an average rate. National Bank of Poland.
Yesterday, the CJEU delivered a decision on another case of the “franc”. This cedes the right to the borrowers. We will describe them in the text below.
Source: Wprost
I am George Brown, author at Daily News Hack. I mostly cover economy news and I have been doing this for quite some time now. I have a lot of experience in this field and I’m always looking for new opportunities to learn more.
