Polish parliamentary committees will revisit a bill designed to expedite court proceedings and reduce the burden on courts handling “frank loan” cases this Thursday.
Bill Aims for Faster Proceedings and Reduced Court Load
The Sejm’s justice and economy committees are scheduled to resume work on a bill concerning the handling of “frank loan” cases in courts. A general discussion on the project took place in December of last year, and the committees are now set to proceed with individual provisions.
The government adopted the draft law, officially titled “On special solutions in the field of recognizing cases concerning credit agreements denominated or indexed to the Swiss franc,” at the end of September last year.
Automatic Suspension of Repayments
According to the bill’s provisions, the obligation to repay installments by the borrower would be automatically suspended upon delivery of a lawsuit to the bank – until the proceedings are finalized with legal force. This solution is intended to be automatic, without requiring any court decisions or orders.
Mutual Claims Settlement in One Proceeding
The project also stipulates that in a process where the borrower seeks claims arising from the invalidity of the credit agreement, the bank will have the opportunity to pursue a reciprocal claim in the event the agreement is deemed invalid. This aims to settle the claims of both the bank and the consumer in one court proceeding and one judgment.
Currently, after a borrower files a lawsuit for a refund of payments made, the bank files a lawsuit for the return of the disbursed capital, resulting in duplicated proceedings.
More Hearings Held Behind Closed Doors and Remotely
Other provisions of the project relate to broader possibilities for courts to hear such cases in closed sessions, the possibility of hearing witnesses remotely, and allowing the examination of a party by submitting written testimony. Court referees will be able to dismiss proceedings after withdrawal of the lawsuit or appeal.
Disputed “Set-Off Claim” Provision
Discussion is expected on Thursday regarding provisions concerning the possibility of submitting statements regarding the so-called set-off claim. This was a contentious element, pending rulings from the Court of Justice of the European Union (CJEU), which was to address set-offs. The Ministry of Justice is now prepared for potential corrections to allow the project to move forward.
Controversies Surrounding the Provisions
According to the regulations, the defendant, such as the bank, can raise a set-off claim in cases where there is reciprocity of claims, which is often the case in “frank loan” cases. The project proposes that “a set-off claim may be raised until the closure of the hearing before the second instance court.”
Critics argue this proposal, extending the time to potentially raise the claim, could be used to prolong and delay proceedings.
CJEU Rulings and Polish Legislation
The CJEU has already addressed issues of set-offs in various rulings. Recently, in the second half of January, it responded to questions from a Warsaw court, which wondered whether a bank could raise a set-off claim for the return of loan capital as a conditional claim, used in the event the court did not uphold the bank’s position that the loan agreement was valid and did not contain unfair terms.
The European Court of Justice ruled that the national court’s consideration of a set-off claim raised by the bank is not contrary to EU law. However, it stipulated that the consumer should be informed of the consequences of declaring the agreement invalid and seeking to invalidate it, being aware of any claims the bank may have regarding the capital.
Possible Swift Adoption of the Bill
The beginning of the Sejm committee meeting is scheduled for Thursday at noon. The Deputy Minister of Justice indicated that, according to preliminary plans, it is possible that the committee’s report will be presented at the next plenary session of the Sejm, and the draft law adopted by the Chamber.