A landmark ruling in the case of “franc loan”

On Thursday, October 3rd the Court of Justice of the European Union issued a judgement in the case of a mortgage indexed to the Swiss franc.

The Tribunal pointed out, that the borrowers were charged with the whole costs related to the difference between the currency purchase rate used to unlock the funds and the currency sale rate used to calculate loan repayment instalments.

In the judgement The Tribunal ruled, that in the situation when the national court examining a specific case finds the unfair nature of certain contract terms without which such a contract cannot be continued, the Court may decide about termination of it. However, the contract may be considered void only with the express and informed consent of the borrower.

Everyone who is interested in claiming their rights in such „franc loans” is encouraged to contact our Law Firm, which currently deals with many such cases.

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