Interpretations of prohibited contractual provisions in the mortgage market with foreign exchange risk

Abstract

Background: Consumers who entered into a contract with banks for credit indexed or denominated to foreign currencies raise the issue of the presence of prohibited provisions. These cases are accompanied by ‘interpretation wars’ between lawyers and academics, as we can see in the courts of general jurisdiction in which a number of cases are pending.

Research purpose: The research goal of this work is to determine the state of development of interpretation in Polish and EU jurisprudence on the legality of concluding mortgage loan agreements linked to foreign currency, as well as to identify prohibited provisions contained in such agreements.

Methods: The adopted goal required the use of an analysis of foreign currency clauses contained in foreign currency-related mortgage contracts. This analysis consisted of the presentation (inventory and discussion) of court decisions as well as selected decisions of the President of the OCCP.

Conclusions: The analysis of the legal situation and events in the legal space allows us to note the

deepening of the processes of unification and expansion of pro-consumer interpretation in Polish and EU jurisprudence Much of this stems from the jurisprudence of the CJEU, which clarifiesmany issues and consolidates the way mortgage issues are resolved.