Antitrust Raids at BIK and Major Banks Over Loan Comparison Penalties
Poland’s competition watchdog, UOKiK, has launched unannounced raids on the Credit Information Bureau (BIK) and leading banks to investigate if credit scoring models unfairly penalized consumers for...
Poland’s competition watchdog, UOKiK, has launched unannounced raids on the Credit Information Bureau (BIK) and leading banks to investigate if credit scoring models unfairly penalized consumers for comparing mortgage offers.
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Regulatory investigation into banking practices
Officials from the Office of Competition and Consumer Protection (UOKiK), acting under court authorization and police assistance, conducted surprise inspections at the offices of the Credit Information Bureau (BIK), ING Bank Śląski, mBank, and mBank Hipoteczny. The action is part of an ongoing investigation to determine if the Polish banking sector has been involved in unlawful anti-competitive behavior.
Credit scoring systems under scrutiny
The investigation centers on the rules for assessing creditworthiness and the exchange of information within the banking system. Regulators are examining the scoring models used by BIK, a private institution owned by nine commercial banks and the Polish Bank Association, which acts as the sole collector of credit history for the Polish population.
The paradox of the informed consumer
UOKiK is verifying whether banks used BIK to artificially lower the creditworthiness of customers who requested multiple loan quotes. This created a paradox: consumers seeking the best mortgage terms by comparing offers generated inquiries that lowered their credit score, while those who blindly accepted offers from their primary bank faced no such penalty.
Statement from the regulator
UOKiK President Tomasz Chróstny stated that the issue is vital for both the financial market and millions of consumers. He emphasized that informed consumers must not be penalized for seeking the best possible credit terms and that information exchange must serve the market rather than stifle competition.
Potential for record-breaking fines
The investigation is currently focused on the practices themselves rather than specific entities. However, if evidence confirms the allegations, banks and BIK could face antitrust penalties reaching up to 10% of their annual turnover. The regulator has also reminded the industry that a leniency program is available for those who cooperate with the investigation.