UOKiK launches proceedings against Getin Noble and Credit Agricole banks

By offering credit in Swiss francs, Getin Noble Bank and Credit Agricole Bank Polska may have violated contracts they had signed with consumers, reported consumer protection watchdog UOKiK. UOKiK was spurred to action when the franc strengthened against Poland’s currency, the zloty, causing CHF-based mortgage loan rates to also rise. At the same time, the LIBOR index value, used to adjust interest rates on adjustable rate mortgages, fell below zero. "They will now take into account the negative LIBOR rate in their calculation of interest on loans when its absolute value exceeds the value of the margin. This means that the negative interest due to borrowers will reduce the current installment on credit or loans," the statement informed. UOKiK has already launched proceedings against Getin Noble Bank in August 2015 and against Credit Agricole Bank Poland in November. As a result of the Authority’s moves, both banks voluntarily commited to put an end to the practices in question and compensate clients for their effects.