Disputes over Swiss franc mortgages

The year 2024 was a positive time for Polish consumers engaged in legal battles against banks over Swiss franc (CHF) denominated mortgages. A series of landmark rulings from the Court of Justice of the European Union (CJEU) and the Polish Supreme Court reinforced the legal landscape in favour of consumers, continuing a long-term trend.

The most significant rulings issued in 2024 were:

• CJEU C-488/23 – The court ruled that banks have no grounds to demand valorisation of the capital provided once a loan agreement has been declared invalid. This decision hinders banks from claiming additional financial compensation beyond the return of the nominal loan amount.
• CJEU C-348/23 – The court established that consumers are not required to produce a formal declaration of their intention for the courts to consider a CHF mortgage contract as permanently ineffective, simplifying the procedures for the consumers. 
• CJEU C-347/23 – The court clarified that a private borrower does not lose consumer status merely because the purchased property was intended for rental. 
• Polish Supreme Court III CZP 25/22 – The full panel of the Civil Chamber of the Polish Supreme Court unified previous case law, reinforcing consumer-friendly legal interpretations and strengthening the legal certainty for borrowers challenging CHF mortgage contracts.

Unabated court overload

The wave of litigation initiated by consumers against banks has continued unabated. By the end of Q3 2024, Polish banks had reported a staggering 120,500 active lawsuits – an increase of over 14,000 cases compared to the end of 2023. Polish common courts ruled in favour of consumers in approximately 97% of verdicts.

This surge in litigation has placed an immense burden on the Polish judicial system. The average waiting time for a ruling in a CHF mortgage case now stands at 550 days. This backlog underscores the need for procedural reforms to expedite the resolution of CHF mortgage disputes.

Planned reforms for 2025

Recognising the systemic challenges posed by CHF mortgage litigation, Polish authorities have initiated work on amendments to the Code of Civil Procedure, specifically targeting disputes between consumers and banks. A draft amendment proposed by the Polish Commission for the Codification of Civil Law is expected to take effect in 2025, aiming to streamline legal proceedings and reduce court congestion. 

Key provisions include:

• Automatic suspension of a consumer’s loan repayment obligations for the duration of the trial, providing financial relief to borrowers;
• Immediate enforceability of first-instance court judgments, reducing delays in granting consumers legal relief;
• Extended use of closed sessions to expedite case resolution without unnecessary delays;
• Remote witness hearings, even in cases where one party objects;
• Written witness statements as an alternative to in-person testimony; and
• Removal of procedural limitations on raising set-off objections, ensuring a more balanced legal approach.

Conclusion

The legal landscape surrounding CHF mortgages in Poland has continued its shift in favour of consumers over the past year. Landmark court rulings from the CJEU and the Polish Supreme Court have strengthened borrowers’ positions, while the ever-growing number of lawsuits highlights the scale of the issue. 

The anticipated procedural reforms in 2025 are expected to improve judicial efficiency and provide consumers with faster, more effective legal remedies.

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Bartosz is a trusted advisor for his clients, supporting companies with know-how in new tech, IP, and cybersecurity, together with his expertise in resolving disputes and business restructuring.