CJEU Ruling Falls In Line With Advocate-General Opinion In FX Loan Case

The Court of Justice of the European Union sided with the advice from its Advocate General and ruled that after the annulment of a mortgage loan agreement due to unfair terms, consumers may pursue claims against banks that go beyond reimbursement of monetary consideration, which banks cannot do.

• The ruling is set to increase the number of lawsuits against banks offering controversial CHF loans. According to NBP statistics, there are currently around 111,000 such cases in Polish courts.
• The verdict removes a key hurdle for consumers to pursue claims against banks. They no longer face the risk of costs associated with the annulment of unfair loan contracts, with banks no longer able to seek compensation for the use of their capital.
• The zloty holds its earlier range, despite an uptick in EUR/PLN; POLGBs have shown little reaction to the verdict. The WIGBANK Index has extended losses after the CJEU's ruling.