An important position on Swiss franc borrowers. CJEU decision

An important position on Swiss franc borrowers

The Court of Justice of the EU (CJEU) answered the questions of the District Court in Warsaw regarding the method of settling invalid Swiss franc contracts. The Court found that EU law does not require the use of any specific model: neither the consideration of the bank's and the customer's claims separately nor their offsetting.

This means that the court may apply the so-called balance theory, if Polish law allows it. It involves the court comparing how much the bank paid to the borrower and how much the borrower paid back to the bank, and then awards only the difference.

CJEU: Consumer protection cannot be weakened

For example, if the bank paid the client PLN 300,000. PLN of the loan, and the client paid the bank PLN 350,000. PLN, then the application of the balance theory would mean settling these amounts and awarding the consumer PLN 50,000. zloty.