September 25, 2021

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RF: Consumer loan settlement claims will begin to expire

RF: Consumer loan settlement claims will begin to expire

December 18 this year marks 10 years since the May 12, 2011 Consumer Credit Law came into force. This means that for some clients soon, claims for incorrect settlement by a consumer loan lender will become obsolete. For contracts entered into in the early years of the law, the limitation period is 10 years – the financial ombudsman reported in today’s announcement.

“This is important information for all who took out a consumer loan after the law came into effect, and then paid it off early. As you know, many lenders did not settle their accounts with their customers according to the rules generated by the regulations. To make it easier for customers to follow up on their claims, we decided to extend the functionality of the calculator that has been Launched in October 2020 in order to accurately determine the limitation period for claims, ”- said Jakob Shzerbowski, Director of Banking Client Management and Capital Market at the Office of the Financial Ombudsman, quoted in the statement.

In a press release, the Financial Ombudsman explained how to calculate the cost of the loan that the bank must repay. In the example described by RF, it is a consumer loan taken on December 18, 2011, in which the customer paid costs (such as commission and setup fees) of PLN 5,000. If he repaid it in the middle of the originally planned period, that is, on June 18, 2012, then 2.5 thousand zlotys should be returned to him. PLN – says RF.

He clarifies that according to the law, in the case of early repayment of a consumer loan, all costs of this loan are reduced (except for the notary fee). This reduction is proportional, i.e. refers to the period from the actual repayment of the loan to the final repayment date specified in the contract.

“The bank must settle the loan within 14 days of the early repayment of the loan in full. In the above example, it must do so by July 2, 2012. This means that the claim for repayment of this amount expires at the end of July 3, 2022.” – she explained Polina Tronovska, legal counsel at the Office of the Financial Ombudsman, is quoted in the ad.

The announcement indicated that the 10-year limitation period applies to claims arising from early repayment of a consumer loan between December 18, 2011 and July 8, 2018. Effective July 9, 2018, changes to the limitation period have come into effect, as a result of a claim arising from early repayment of the loan made After that date, it becomes prohibited by law after six years.

As stated in the Financial Ombudsman’s statement, the law, in force for nearly 10 years, imposed a number of restrictions and obligations on lenders. They include, among other things, the instructions given in Art. 49 sec. 1 of the Consumer Credit Act. According to its content, if the entire loan is repaid before the date specified in the contract, the total cost of the loan is reduced by costs related to the period during which the term of the contract was shortened, even if they were incurred by the consumer before repayment.

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