Polski / English
In Poland, first instance of a class action brought by so called „Ripped of by mBank” against Polish BRE has ended with a victory of the „old portfolio” Swiss frank mortgage holders.
The court, announcing the ruling, stated that BRE used abusive clause in their mortgage contracts made under mBank and MultiBank brands, which is against good practice and violates borrowers’ interests. The justice confirmed the disparity of rights and obligations in the contracts to the benefit of the bank.
The contract clause on rate adjustments has been described as imprecise and nontransparent, allowing mBank and MultiBank to freely change the interest rates without any control of their clien0ts. As the mortgage payments have been excessive as a result, the plaintiffs can claim damages.
As stated in our previous posts (Class action against mBank – why have I quit? [Polish]) possible confirmation of this ruling will determine only the right of the borrowers to claim damages. Each „ripped off” will still need to individually go to court so that the value of their compensation can be calculated. However, the path of individual suit has been available to the „ripped off” even before and taken by many (see Winners Catalog).
It seems therefore, that the first instance verdict of the class action suit against BRE doesn’t change much, although it might be an additional argument for the „ripped off” in their individual lawsuits.
- BRE Bank to appeal after unfavorable ruling in class action (Polish Press Agency)
- BRE Bank sued over Swiss franc mortgages (Warsaw Business Journal)
- Grupa na Bank: winning the class action (Wierzbowski Eversheds)