Banking litigation: WIBOR, the free credit sanction, and judgments from the Court of Justice
Reports 14.07.2025
The Polish courts hear numerous cases between banks and their customers. Some borrowers challenge the legality of the use of the Warsaw Interbank Offered Rate as the benchmark for interest rates on mortgage loans. Others seek imposition of the sanction of “free credit” to gain an economic advantage in consumer credit cases. On top of these are cases involving the settling of accounts under invalidated credit agreements denominated in Swiss francs.
In our report we present a thorough legal analysis of these issues from the perspective of the stability of the banking system and protection of the legitimate interests of lenders. We demonstrate that neither the objections to the WIBOR benchmark, nor overbroad attempts to expand the sanction of free credit, are properly grounded in the applicable law. We also discuss a recent ruling from the Court of Justice of the European Union which will an impact on the settlement of accounts between the parties to credit agreements that have been found to be invalid.
