EU court rules in favor of Polish Swiss franc mortgage holders

The European Court of Justice (ECJ) has found that banks cannot demand extra fees from Polish borrowers who took out mortgages in Swiss francs for the non-contractual use of the capital.

“EU law does not preclude, in the event of the annulment of a mortgage loan agreement vitiated by unfair terms, the consumers from seeking compensation from the bank going beyond reimbursement of the monthly installments paid,” the court ruled. “By contrast, it precludes the bank from relying on similar claims against consumers.”

Poland’s financial authority KNF criticised the ruling, which could cost the banking sector as much as PLN 100 billion, according to analysts’ estimates. KNF acknowledged that the court’s ruling will have a negative impact on the banks, but reassured that the sector is safe and stable.