The class action of the franchise holders against various public institutions was accepted by the Court of Appeal in Warsaw. Borrowers will try to prove that regulators were aware of the “toxicity” of franc loans but did nothing to protect clients.
For years, the Francoists fought to convince the public and the courts that the loan agreements they entered into gave banks excessive powers and proved harmful to them. The last months bring more and more good news for those who are in debt. First, in February, the Advocate General of the Court of Justice of the European Union ruled in favor of Swiss franc borrowers in response to a question from the judge hearing the case against the bank.
The General Counsel of the CEC is on the side of the franchisee. We are waiting for the verdict
The opinion of the Ombudsman is not binding law, but is an interpretative guide for the courts. It can be expected that the CJEU will reiterate in its decision, which is expected in the coming weeks, the conclusions reached by the Commissioner. If this happens, franc-denominated banks will face an earthquake because customers will be able to file financial claims for abuses committed by financial institutions.
In order to prevent situations that could endanger the financial liquidity of banks, the Office of the Polish Financial Supervision Authority has been working for some time on proposals for the Swiss Franc Law, which should resolve disputes between borrowers and banks. Its specific assumptions have not yet been reported, but a Business Insider journalist found out what it may contain.
Thousand francs
Hundreds of cases filed by franchise owners are pending in the courts - and above all in a special branch of the “franc” in Warsaw. In order to avoid unfavorable judgment, banks offer customers settlements, which was unthinkable even 2-3 years ago.
A class action lawsuit against the State Treasury can be added to the list of franchisee successes. According to Business Insider, “his fate was not easy.” The first decision to accept the claim for consideration was appealed and then cancelled. The next decision was also appealed, and it was not until March 15 that the Court of Appeal in Warsaw finally settled the key formal issue (case no. VI ACz 486/22) and the case will be considered as a group.
Frankovich, class action. What will borrowers prove?
The defendant is the Office of the Polish Financial Inspectorate and the State Treasury, represented by a number of state institutions that are not legal entities, which act within the framework of their tasks on behalf of and in the interests of the State Treasury. These are the Chairman of the Office for Competition and Consumer Protection, the head of the Prime Minister’s Office and the Mazovian Voivode.
The plaintiffs will try to prove that since at least 2002, the state authorities have been aware of the high risk associated with the sale of foreign currency loans. Borrowers claim they were unaware of these risks, and foreign currency loans were massively marketed as safe and attractive products. Another accusation is that state bodies, including financial supervision, did not protect the client or only pretended to protect him, and did not fulfill their statutory obligations.
The Frankovićs contend that, despite the perceived need by government authorities to restrict the sale of foreign currency loans, the government has not taken any effective intervention, warning or information provided by law.
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.
