A Guide For CHF Borrowers – What Are The Options For Dealing With A CHF Loan?

Guide for CHF borrowers is a practical source of knowledge for people with loans indexed or denominated in Swiss francs. In recent years, thousands of borrowers have successfully asserted their rights in court, and case law – including judgments of the Court of Justice of the European Union – has significantly strengthened their position in disputes with banks.

If you have a CHF loan or have already repaid it in the past, this guide explains what actions you can take, what claims you may be entitled to, and how to prepare step by step to assert your rights.

Who Are CHF Credit Borrowers and What Is a Swiss Franc Loan?

A “CHF loan” usually means a mortgage linked to the Swiss franc exchange rate (CHF). In practice, there are two main types.

In both models, banks used their own exchange rate tables. In many contracts, this led to the inclusion of unfair and unlawful clauses.

Why Are CHF Loans Being Challenged?

The main allegations against CHF loan agreements concern violations of consumer rights. These include:

• unclear rules for setting exchange rates;
• transferring full currency risk to the borrower;
• lack of reliable information about currency risk;
• ambiguous contract provisions.

Such clauses may be considered abusive. Abusive clauses are not binding on consumers.

Guide For CHF Borrowers – Step 1: Review Your Loan Agreement

The first and most important step is a professional contract review.

The analysis should examine:

• how exchange rates were determined;
• provisions on currency risk;
• the bank’s information obligations;
• potentially abusive clauses;
• compliance with consumer protection law.

A detailed review helps determine whether the CHF loan can be annulled. It also shows whether claims against the bank are possible.

Guide For CHF Borrowers – Step 2: Verify Abusive Clauses

Many agreements allow the bank to set exchange rates unilaterally. Often, no fair criteria are provided.

This may result in:

• inability to determine the actual debt;
• the bank’s arbitrary exchange rate calculations
• imbalance between the parties.

If clauses are abusive, they may be declared non-binding.

Guide For CHF Borrowers – Step 3: Check Limitation Periods

According to the case law of the Court of Justice of the European Union (CJEU) and the Polish Supreme Court, the limitation period for consumer claims starts when the consumer becomes aware that the contract may be invalid.

In practice, this means:

• even a fully repaid loan may still give rise to claims;
• the limitation period begins when the borrower becomes aware of the contract defect.

CJEU judgments on consumer protection play a key role in these cases.

Guide For CHF Borrowers – Step 4: Choose the Right Legal Strategy

CHF borrowers have several legal options.

Invalidation of the CHF Loan

A court may declare the agreement invalid if it contains unfair terms.

Effects:

• the bank returns all instalments and fees paid;
• the borrower repays only the principal amount;
• the contract is treated as if it never existed.

This option often brings the greatest financial benefit.

Removal of CHF Indexation (“De-indexing”)

This involves removing the CHF indexation mechanism. The loan is then recalculated as a PLN loan.

Effects:

• lower outstanding balance;
• reduced instalments;
• elimination of currency risk.

Settlement with the Bank

The bank may offer to amend the loan terms. This usually involves converting the loan into PLN.

Advantages:

• quick resolution of the dispute;
• no court proceedings.

Risks:

• waiver of further claims;
• often less favourable terms than a court judgment.

Swiss Franc Borrowers – Filing a Lawsuit Against the Bank

If negotiations fail, borrowers may file a lawsuit.

A CHF lawsuit may include:

• a claim for contract invalidation;
• alternatively, de-indexing;
• reimbursement of overpayments;
• settlement of mutual claims.

Currently, most court proceedings in CHF cases end in favour of borrowers.

CJEU Judgments and the Situation of CHF Borrowers

Judgments of the Court of Justice of the European Union have significantly strengthened consumer protection.

The case law confirms that:

• consumers must be protected against unfair terms;
• contracts cannot involve provisions favourable only to banks;
• the consequences of abusive clauses should deter unfair business practices.

Sanctions for Banks and Legal Consequences

If a contract is declared invalid, this may result in:

• the bank having to return payments received;
• loss of interest and commissions;
• covering court costs.

Court rulings also have a preventive effect. They influence banking market practices.

Is a Settlement with the Bank Worth It?

A settlement decision should always follow a legal review.

A settlement may be beneficial if:

• the borrower wants a quick resolution;
• stability of instalments is a priority;
• the borrower wishes to avoid long-term litigation.

However, often, contract invalidation provides greater financial benefits.

Common Mistakes Made by CHF Borrowers

• signing a settlement without legal analysis;
• giving up claims out of fear of court proceedings;
• failing to secure loan documentation;
• delaying action for too long;
• using unreliable compensation companies.

Summary – Guide for CHF borrowers

A CHF loan does not have to mean a long-term financial burden. Thanks to evolving case law and consumer protection laws, borrowers can enforce their rights. Many recover significant amounts.

The key factors are a thorough contract review and the right legal strategy. Support from an experienced lawyer is necessary.

Have Your CHF Loan Agreement Reviewed

A professional review can assess your chances of invalidating the loan. It can also determine whether you can recover overpayments or negotiate a settlement.

A law firm can assist with:

• contract and document analysis;
• assessment of claims and risks;
• negotiations with the bank;
• court representation.

Early consultation increases the chances of a successful outcome. Contact us for more information.

Guide for CHF borrowers – Frequently Asked Questions