Consumers are increasingly challenging the fundamentals of financial institutions in an attempt to escape the consequences of the risks they agreed to when taking out mortgages.
Moreover, until recently it was assumed that the entrepreneur was the stronger party to the contract and could dictate the terms. However, in the context of the CHF mortgage cases, we have seen a tendency to give consumers as much ‘protection’ as possible, at the expense of the interests of banks.
However, as the CJEU has emphasised on many occasions, and as the Polish courts should not forget, the role of the consumer protection system should be ‘to restore the balance between the parties, and not to punish the trader’.
Indeed, the undermining of WIBOR poses serious and unprecedented challenges to the banking sector and could have far-reaching consequences for the entire financial system, and the Polish economy.
From a legal point of view, the main objections to this index are its alleged opacity and potential for manipulation, which forces courts to interpret – not always correctly – complex financial mechanisms. As a result, judgments on individual cases can set a kind of precedent that will then influence the course thousands of similar cases.
From a regulatory point of view, this situation forces the supervisory authorities to react. The Financial Supervision Authority (KNF) and the National Bank of Poland are obliged to consider replacing WIBOR with an alternative index, the introduction of which entails further risks and requires careful planning.
For the banking sector, the undermining of WIBOR means potential financial losses and the need to revise business models. A worst-case scenario, but still possible, is a massive renegotiation of loan agreements, which will inevitably affect the liquidity and stability of banks and the availability of credit. And ultimately the overall health of the economy.
Moreover, the pressure currently being exerted by consumers to challenge their loan agreements could turn against them.
This is why, on 11 September, we will talk about the practical aspects of challenging WIBOR, take a close look at the arguments of borrowers and the strategies of the law firms representing them, and discuss effective defence strategies.
We will show why WIBOR should be defended. Indeed, the banks have a real chance of succeeding in the litigation in this respect. Especially now, at this crucial moment when the judiciary is forming its views on the issue.
Topics for discussion:
- Limits of consumer protection
- Types of variable interest rate clauses in agreements concluded by banks
- Consumer objections to the WIBOR benchmark and possible counter-arguments from banks
- Current case law on WIBOR
- Effects of removing WIBOR from the agreement
- Risks associated with the removal of WIBOR from the agreement
Speakers
Weronika Magdziak-Śliwa, Advocate, Partner
Tomasz Leśko, Attorney at Law, Partner
Jakub Jach, Attorney at Law, Counsel
Who is this event for?
This is a closed event, for representatives of cooperative banks only.