Immigration law

A crucial judgment of the CJEU regarding franc loans

On October 3, 2019, the Court of Justice of the European Union in Luxembourg announced its judgment in case C-260/18 in the case of the state of Dziubak, who question in an individual process the fairness of the terms of the contract regarding the indexation mechanism used in a foreign currency indexed mortgage contract.

The Court pointed out that the EU system consumer rules do not allow, after the elimination of indisputably abusive provisions from credit agreements, to introduce other provisions, conversion clauses, etc.

The judgment should be interpreted in such a way that it is not possible to calculate installments, e.g. according to the average exchange rate of the National Bank of Poland.

The CJEU confirmed that the elimination of exchange risk clauses defining the main subject of the loan agreement leads to the conclusion that the objective possibility of maintaining the validity of the loan agreement seems uncertain in these circumstances.

The above conclusions make it possible to determine that, in accordance with the consumer’s decision, you can seek annulment or „de-franking” using the preferential LIBOR interest rate, with total elimination from the contract of illegal clauses referring to the CHF rate.

We kindly invite you to cooperate in matters regarding CHF loans.

Author team leader DKP Legal
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