Without an Exact Amount of Claims, the Borrower Will Not Receive Default Interest from the Bank — EU Court Decision
The Court of the European Union ruled that a consumer must clearly specify the amount of their claims against the bank before gaining the right to accrue default interest. The decision was made in a case concerning a mortgage loan in Swiss francs in Poland and somewhat strengthens the position of banks in such disputes.
Specifically, the EU Court decided that EU law allows for the accrual of statutory default interest after a credit agreement is declared invalid only from the moment the consumer notifies the bank of the specific amount they demand to be repaid.
The case concerns so-called "franc loans" — mortgages issued in Swiss francs. Such loans were common in several European countries, including Poland, and later became the subject of numerous legal disputes due to unfair contract terms.
What happened in the case
In 2008, a Polish couple concluded a mortgage loan agreement with a bank in Swiss francs for the amount of 50,000 zlotys.
Several years later, the borrowers challenged the validity of the agreement, claiming it contained unfair terms. They demanded the return of all funds paid to the bank, as well as payment of default interest.
The core of the dispute was from which moment such interest should be accrued: from the day the borrowers declared the contract invalid or only after the bank received a document with a clearly defined amount of claims.
Due to these doubts, the District Court of Warsaw referred the matter to the EU Court for an official interpretation of European law.
The EU Court's position
The Court concluded that the bank must be able to familiarize itself with the specific amount demanded by the consumer in order to assess the validity of the claims and the extent of its possible obligation.
Therefore, EU law does not prohibit national legislation from establishing a rule whereby default interest begins to accrue only after the bank receives a statement, claim, or lawsuit specifying the exact amount to be repaid.
According to the Court, such a requirement does not create excessive obstacles for consumers, as information about payments made can be obtained from the account history or through a bank statement.
What the decision means in practice
The decision means that even if a credit agreement is declared invalid due to unfair terms, the bank may be obliged to pay default interest not from the moment the contract is contested, but only from the day it receives a document in which the client precisely specifies the amount of their claims.
At the same time, the EU Court emphasized that the directive on unfair terms in consumer contracts does not regulate in detail all consequences of invalid credit agreements. Therefore, EU member states may independently establish appropriate rules, provided they do not excessively complicate consumer rights protection.
Why this is important
The decision may be significant for thousands of legal disputes concerning currency loans in European Union countries. It confirms that to accrue default interest, it is not enough to merely declare the contract invalid — it is also necessary to clearly formulate monetary claims against the bank.
Key conclusion: if a borrower wants to receive default interest from the bank after a credit agreement is declared invalid, they must specify the exact amount they demand to be repaid. Only after this can the accrual of such interest begin.
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