Consumer Lending | Pay-day loans Regulation in Poland

Updated: 17.04.2025

What Rules Apply to Giving Consumer Loans in Poland?

Consumer loans represent a significant segment of the financial market, regulated under the 2011 Consumer Credit Act. This Act establishes a comprehensive framework for consumer credit agreements by outlining the rules and procedures for their formation, defining the pre-contractual information that creditors and credit intermediaries must provide, and clarifying the responsibilities of consumers in this process. It also specifies the consequences for creditors who fail to fulfil their obligations. Adherence to these rules is essential for the legal and secure operation of the lending sector.

Who Can Legally Offer Consumer Credit in Poland?

According to Article 3 of the Act, consumer credit is defined as any credit agreement not exceeding 255,550 PLN (or its equivalent in a foreign currency) granted to a consumer by an entity operating within its business activities. This category includes loan agreements, bank loans, revolving credit, deferred payment agreements, and other forms of financing that meet statutory criteria. Entities providing consumer credit must adhere to specific formal requirements.

As outlined in Article 5, point 2a of the Act, a lending institution is defined as a lender that does not encompass domestic or foreign banks (or their branches), credit institutions (or their branches), cooperative savings and credit unions, entities whose primary business involves granting consumer credit through deferred payments for their goods and services, or designated payment and electronic money institutions when providing the specified payment credit.

Lending Institution Assessment of the Borrower’s Creditworthiness

Article 9a of the Act stipulates that a consumer credit agreement may only be granted after a positive evaluation of the borrower’s creditworthiness. This assessment is primarily based on information from trusted providers, including institutions and business information bureaus, thus ensuring that reliable financial data inform the credit decision.

Suppose the information from these sources is insufficient. In that case, the lending institution must obtain a declaration of the consumer’s income and regular household expenses, along with supporting documents – significantly when the loan amount exceeds twice the minimum remuneration for work. The collected information becomes an annexe to the consumer credit agreement.

Furthermore, if credit is granted without a proper assessment or if the consumer is in significant arrears on another monetary obligation (beyond six months) and the credit is not intended for settling those arrears, the subsequent assignment or recovery of the debt is either restricted or rendered invalid, subject to specific cost thresholds.

The lending institution must also retain all data used for the credit assessment for three years after the end of the legal relationship. Additionally, it must promptly report credit approvals and any cases of credit arrears to the designated authorities without imposing fees, thereby ensuring ongoing transparency and regulatory compliance.

Exclusion of Part of the Loan Provisions

The provisions of the Polish Civil Code regarding:

1. the maximum amount of non-interest costs of a loan,
2. security for the repayment of the loan,
3. the obligation to inform the borrower of the non-interest costs, the interest amount, and the interest due, as well as
4. early repayment of the loan along with its interest and non-interest costs,

shall not apply to a cash loan agreement granted by a lending institution under the provisions of the Consumer Credit Act.

What Must a Lending Company Do to Legally Operate in Poland?

Lending institutions must operate as either a joint-stock or limited liability company with a supervisory board. They must have a minimum share capital of 1,000,000 PLN, which must fully cover cash contributions from documented sources.

Key personnel- including members of the management board, supervisory board, or proxy members- must not have convictions related to document reliability, property offences, economic turnover, trading in money and securities, or fiscal offences. In addition, applications for entry into the National Court Register must include criminal record certificates for these individuals and a statement confirming the intent to engage in consumer credit business.

Before commencing operations, a lending institution must obtain registration in the register of lending institutions. The day this registration is completed is the effective start date for its business activities.

What Information Must Be Provided to Register as a Lending Institution?

The PFSA maintains the register and makes it available online via its ICT system, ensuring transparency and public access to the details of registered lending institutions. To complete an application, the entity must provide detailed information, including its business name, registered office and address, management board members’ names and PESEL numbers, the National Court Register number, and the tax identification number.

The application must also accompany a clean criminal record certificate for key personnel and documents confirming that the entity meets the required conditions. Once submitted, the Authority is obliged to register the entity within 14 days.

Entry requires a fee of 600 PLN, while amendments or deletions from the register incur a fee of 200 PLN. These fees help cover the costs associated with maintaining the register, which contains key details such as the registration number, business data, and any references to deletions.

Additionally, lending institutions must notify the PFSA within 7 days of any changes to the registered data. The Authority will refuse registration if the entity does not meet the specified conditions and delete entries immediately if an entity ceases to comply or is removed from the Register of Entrepreneurs.

How Must Lending Institutions Handle Consumer Data and Confidentiality?

Lending institutions may share consumer information necessary for assessing creditworthiness and analysing credit risk with designated institutions, provided they have received written authorisation from the consumer specifying the scope of the data to be disclosed. Furthermore, after sharing such information, the lending institution must promptly notify the receiving entity of any changes regarding the consumer’s obligations- such as full repayment or adjustments- within 7 days, and the receiving entity must update its records within the same timeframe.

The Consumer Credit Act also emphasises strict confidentiality requirements. All parties involved – including the lending institution, related entities, and their employees – must keep the shared banking information confidential and may only use it for creditworthiness and risk assessments. This confidentiality obligation remains in effect even after the institution ceases operations or the relevant legal relationships end.

Sources of loan financing – what does the law say?

Moreover, the Act specifies that funds used for granting consumer credits must not originate from activities involving the collection of funds from external parties or undocumented sources.

However, bank loans or loans from affiliated entities are permitted under certain conditions. The lending institution is fully liable for the actions and omissions of its employees, credit intermediaries, or any other agents involved in the credit process, with the burden of proving compliance with these obligations resting solely on the institution.

Foreign credit institution in Poland – how to enter the market?

The Act permits an entity based in an EU country – other than Poland, Switzerland, or an EFTA member- to operate as a consumer credit provider in Poland if it meets the specified conditions.

The entity must notify the PFSA at least two months before commencing operations, indicating the supervisory authorities from its home country or stating that none are designated. Additionally, its minimum share capital is determined using the average exchange rate published by the National Bank of Poland on the day it begins its activity as a lending institution in Poland.

How Does the Polish Financial Authority Check on Lenders?

PFSA is responsible for overseeing lending institutions operating in consumer credit. The primary objective of this oversight is to ensure that these institutions comply with relevant laws. They must submit detailed quarterly and annual reports that include information on the number, value, and structure of consumer credits, contractual statuses, client numbers, revenues (including non-interest costs), balance sheets, and compliance of key personnel.

Lending institutions must submit their reports electronically using prescribed forms and channels. The Ministry responsible for financial institutions will set detailed requirements regarding the scope, deadlines, and format for these submissions to ensure that the PFSA has all the necessary data for effective oversight.

Furthermore, the PFSA is empowered to request additional information or documents beyond the standard reports and can issue recommendations to ensure compliance with the law. If a lending institution fails to meet its reporting obligations, follow PFSA recommendations, or conduct its business in contravention of legal provisions, the PFSA may impose administrative fines on the institution and its responsible board members. The PFSA can even suspend board members or remove the institution from the register in severe cases.

The Consumer Credit Act also mandates strict confidentiality for information obtained during supervision. Such information is protected as professional secrecy and may only be disclosed under specific conditions, for instance, to designated supervisory authorities or in connection with criminal investigations. This ensures that the oversight process does not compromise the protected interests of the parties involved.

Additionally, lending institutions must pay annual fees to cover supervisory costs, calculated as a percentage of their previous year’s consumer credit revenues, subject to a minimum threshold. Provisions for sanction fees also exist if institutions fail to provide mandatory information regarding their revenues, which are enforceable under administrative enforcement procedures.

Criminal Provisions

The Consumer Credit Act outlines criminal provisions and penalties for lending institutions’ non-compliance. It specifies that any lender failing to meet the Act’s conditions is subject to a fine of up to 500,000 PLN and imprisonment for up to 2 years. This penalty applies to board members or authorised representatives who commit the same offence.

Furthermore, it addresses the operation of lending institutions without the required registration in the register of lending institutions. Any lender lacking this mandatory entry faces a fine of up to 500,000 PLN.

Finally, it deals with misrepresenting information to the PFSA. Suppose a responsible person in a lending institution provides false information or otherwise misleads the Authority. In that case, they may face a fine of up to 1,000,000 PLN, imprisonment for up to 2 years, or both. In cases where the offence is unintentional, the penalty is reduced to a fine of up to 500,000 PLN, imprisonment for up to 1 year, or both.

FAQ Consumer Lending in Poland