What's next frankers? - Rynek i gospodarka.

Mortgage loans granted in Swiss francs enjoyed the greatest popularity in the years before the financial crisis of 2007-2009, but to this day they are associated with economic, social and even legal consequences. The Swiss franc loans law firm is actually a new, industry specialization, but there is also the question of what to do with such liabilities, what about the situation of franc borrowers and whether the problem of debt denominated in foreign currencies can be reasonably solved at all?

Retail banks allocate funds for settlements with frankers

Interestingly, recently, even the Polish Financial Supervision Authority has started to recommend retail banks to allocate special funds for settlements with franchise holders, and this is a sign that the problem has actually spread throughout the sector and will probably not end well for large institutions. Law firms dealing with Swiss franc loans help clients to a large extent through free tools for converting new liability costs, e.g. after currency conversion, they publish interesting materials taking into account positive judgments, the most important interpretations. The presence of prohibited clauses in CHF loan agreements has been confirmed by the Office of Competition and Consumer Protection, as well as many EU structures. The problem of franc loans does not only apply to Poland, but also to Hungary and other EU countries. A Swiss franc loan is a highly speculative loan, poorly discussed in contracts in terms of risk. It is already evident today that banks did not properly inform customers about the degree of risk, and they must do so in accordance with the guidelines of the Polish Financial Supervision Authority and the provisions of the Banking Law. These acts, legal acts have been violated in a sense. The allocation of funds by banks and the largest joint-stock companies is a very good sign for franchise holders. Why? This means that the legal analysis departments in banks and previous judgments convinced supervisory boards to make such a move. Settlement funds are a smaller loss than the likelihood of a fight before the courts and even EU institutions.

A new specialization branch in law firms and good prospects for the fight

Assistance to frankers is actually a separate field in many law firms, and this is a huge threat to the retail banking sector. Banks understand that it is better to talk about the settlement directly with the client than with a lawyer, because it only increases costs. Frankowicze also gather in increasingly larger associations, create numerous educational materials, exchange knowledge in closed and open groups, integrate, and prevent the emergence of another speculative pressure. The mortgage loan market has changed, precisely because of the actions of frankers, because in Poland you can no longer make such a commitment if the borrower does not show income in a specific currency. What does it mean? You will not take out a loan in francs if you do not earn in francs. This is a very positive signal excluding speculative values from the entire retail banking sector. The law firm usually offers assistance to frankers in several dimensions. One of them is a free conversion of currency conversion costs and potential profits. Unfortunately, it is not always worth fighting the banks, and it all depends on the conditions of the contract, whether the provisions contain prohibited clauses. For this reason, you should contact a lawyer. It is he who is responsible for determining the further action strategy after detecting such irregularities.

CJEU to help borrowers mired in Swiss francs

In fact, Polish franc loans were not even speculative, but artificially linked to the value of the foreign currency, which caused many pathologies when converting costs. In the discussion on the problem, voices can be heard that it is the frankers’ fault, but this is not entirely true. If the product turns out to be pathological after some time, and the client does not know about it, is not informed about the proper repayment arrangement, is exposed to pointless costs, and there is no chance to change the repayment terms, something is wrong. In the perspective of a Swiss franc loan, the fault lies more with the banks, and this is already indicated by many positive judgments for customers. The next step is, of course, a lawyer servicing franc loans and making a decision to fight. Each borrower should make such decisions individually after reviewing the judgments and industry opportunities. Even the Court of Justice of the European Union, or the CJEU, joined the case of frankowiczów. Most law firms that analyze a loan in francs refer directly to the interpretation of the CJEU, which gives a huge negotiating advantage. In some judgments, it can be seen that the CJEU even promotes the annulment of contracts with specific prohibited clauses.

What should you remember from the article?

First of all, you are not alone in the fight for rights, and the largest national and international institutions are focusing on the franc loan, also in the field of control and determination of prohibited clauses. Banks are afraid of the consequences, which is why they allocate funds for settlements.