Banking law
Free credit sanction
Where a bank breached its information duties when granting a consumer loan, the borrower may repay the debt with no interest or other costs. We review the agreement and run the case across Poland.
What the free credit sanction is
The free credit sanction is a borrower's entitlement provided for in the Polish Consumer Credit Act. Where the lender breached certain duties, including its information duties, the consumer may repay the loan with no interest and no other cost of credit, returning only the capital borrowed.
We examine consumer loans concluded after 18 December 2011 for the conditions triggering the sanction. Where the bank shaped the agreement contrary to the rules set out in the Act - expressed in particular in Article 30(1) - the borrower, after filing the appropriate declaration with the bank, repays the loan with no interest and no other costs within the period stated in the agreement.
In practice this may mean recovering part of the interest and costs already paid, or reducing the remaining instalments. Every agreement requires an individual review, however - whether the sanction applies depends on the specific wording and on how the agreement was concluded.
When it is worth checking your agreement
The situations below may indicate that an agreement is worth reviewing for the free credit sanction. We always carry out the verification individually.
Consumer credit
A loan or credit agreement concluded as consumer credit, up to PLN 255,550.
Doubts about the costs
Unclear or incorrectly stated costs, APRC or interest rate.
Interest on the cost of credit
Interest charged on a credited commission or insurance premium.
Ongoing or repaid agreement
A review is possible both for agreements still being repaid and for those already settled.
Non-bank loan
Agreements with lending companies, including limits on non-interest costs.
Consolidation loan
Consolidation within the statutory limit and without a mortgage character.
How we work together
Free analysis
You send us the agreement and we assess whether the sanction may apply.
Assessment and terms
We set out the prospects and the terms of cooperation, including instalments.
Declaration and claim
We prepare the declaration for the bank, then the statement of claim, and represent you before the court.
Running the case
We run the case through to resolution, keeping you informed of progress.
How the sanction works
What exactly happens once the declaration is filed
Refund of the overpayment
Any overpayment arising for the period from the date the loan agreement was concluded to the date the declaration was filed is refundable by the bank to the consumer as a payment to which the bank was not entitled.
All interest, commissions, fees and premiums covered by the sanction that have been paid are refundable. The consumer repays the loan with no interest, with retroactive effect from the date the agreement was signed. The sanction does not, however, cover the cost of security.
The declaration has to be right
It matters that the sanction does not arise automatically: it requires a formal declaration specifying the individual defects of the agreement and invoking the sanction.
A wrongly drafted declaration, or formal and substantive gaps in it, can destroy any chance of effectively pursuing the consumer's claims in court. That is why we draft the declaration ourselves and send it by registered mail with acknowledgement of receipt.
The deadline is strict
The right expires one year after the day the agreement was performed. This is a strict time limit - once it passes, the consumer loses the right no matter how serious the bank's errors were.
For agreements already repaid it is therefore crucial to establish exactly when the agreement was fully performed. If you have any doubt, it is worth checking as soon as possible.
How much you may recover under the free credit sanction
The calculator shows which part of the interest and credited costs would be refundable and which would be written off, should the free credit sanction prove effective. The figures you need are on the first page of your loan agreement.
Let's review your agreement
The analysis is free and without obligation. Just send your loan agreement.