Polish mortgages in Swiss franc – you should better avoid it
The Swiss franc mortgage is a type of mortgage loan that is denominated in Swiss francs (CHF) instead of the local currency. These loans became popular in some countries, such as Poland and Hungary, during the early 2000s due to low interest rates in Switzerland. However, many borrowers were caught off guard when the Swiss National Bank (SNB) unexpectedly abandoned its peg to the euro in January 2015, causing the value of the franc to skyrocket. This resulted in a significant increase in the monthly repayments for borrowers with Swiss franc mortgages, making it difficult for them to keep up with their payments.
In many cases, borrowers are now seeking legal action against the banks that granted them these loans, claiming that the banks did not properly inform them of the risks associated with borrowing in a foreign currency. The banks, on the other hand, argue that the borrowers were aware of the risks and signed contracts voluntarily.
There have been a number of high-profile court cases in which borrowers have successfully sued the banks for mis-selling Swiss franc mortgages. For example, in Poland, the Supreme Court has ruled that banks must convert the loans back into the local currency at the exchange rate that was in effect at the time the loan was taken out. In Hungary, the Constitutional Court has also ruled that Swiss franc mortgages are unconstitutional and must be converted into the local currency.
There are several reasons why borrowers are able to sue the banks and potentially have their Swiss franc mortgages cancelled. One reason is that the banks may have violated consumer protection laws by not fully disclosing the risks associated with borrowing in a foreign currency. This can include failing to inform the borrower of the potential for currency fluctuations, not providing information about the historical exchange rates, or failing to make it clear that the loan would be subject to a currency risk.
Another reason is that the banks may have engaged in predatory lending practices. For example, some banks may have targeted vulnerable borrowers who did not fully understand the risks associated with borrowing in a foreign currency. The banks may have used high-pressure sales tactics to convince the borrowers to take out these loans, even if they were not in their best interests.
Finally, it is possible that the terms and conditions of the loans were unfair or abusive. For example, some borrowers may have had hidden fees and charges added to their loans, making it difficult for them to keep up with the repayments. Additionally, some borrowers may have had loan agreements that contained clauses that were unfavorable to them, such as clauses that would allow the bank to increase the interest rate if the exchange rate changed.
In conclusion, Swiss franc mortgages can be a source of legal action for borrowers who feel that they were not properly informed of the risks associated with borrowing in a foreign currency, or who feel that they were subjected to unfair or abusive lending practices. Whether you are a borrower who is seeking legal action or a bank that is defending itself against a lawsuit, it is important to understand the legal and regulatory environment surrounding Swiss franc mortgages and to work with a knowledgeable attorney who can help you navigate the complex legal landscape. kancelaria frankowa.