- The draft law introduces crucial changes to the judicial procedures for frank loans, aimed at speeding up proceedings and expanding the efficiency of justice.
- The fresh regulations include simplification of judicial procedures, broadening the competence of referents, introducing mechanisms to limit the number of fresh cases and encouraging settlement and mediation.
- Thanks to these solutions, the legislator seeks to increase consumer protection and to improve the work of courts dealing with frank cases.
genesis of planned solutions in the project
The bill was created in consequence to respective key challenges faced by the Polish justice strategy as part of the handling of frank cases. Their scale is highly large, which leads to overburdening courts and crucial delays, both in franc cases and another proceedings, regardless of their subjects. So far, organisational solutions, including the creation of specialised departments in territory courts, have not yielded the expected results. The case law of the Court of Justice of the European Union and the ultimate Court has already clarified a number of key legal issues, making it possible to simplify procedures without interfering in the substantive settlement of cases. Prolonged proceedings violate consumers' rights and reduce the efficiency of justice and so peculiar legislative measures are necessary.
Purpose of the proposed law
The aim of the proposed government is to establishing legal standards enabling courts to identify cases relating to denominated or indexed loans to Swiss francs more quickly.
As indicated in the published assumptions, the solutions provided for in the task are aimed at:
- discharge of court congestion resulting from the mass impact of franc cases on courts;
- safeguard the constitutional right of citizens to examine their case within a reasonable time;
- the introduction of effective procedural mechanisms to improve the work of courts handling frank cases;
- reducing the burden on courts by promoting measures to reduce the number of franc cases and encouraging settlement of disputes.
Key solutions provided for in the bill
The draft law focuses on introducing circumstantial procedural rules aimed at speeding up proceedings and reducing the burden on courts. Changes have been made covering both the simplification of procedures and legal instruments allowing more efficient settlement of frank disputes.
Simplification and acceleration of judicial procedures
The proposed government assumes suspension of the consumer's work to comply with the benefits arising from the frank credit agreement from the minute the claim is served on the bank, which eliminates the request to recognise consumer safety claims. The extension is to be subject to the anticipation of ruling at classified meetings in both the first and second instance. Under the proposed rules, it was besides possible to interview the parties in writing and let witnesses to be interviewed at distant meetings. It is besides foreseen harmonisation of the rules for the lodging and acceptance of statements of set-off by the procedural representative and the anticipation to settle a claim between the bank and the consumer within a single procedure. Members of the Court of Justice shall have the power to waive proceedings in the event of revocation of a suit or appeal. It is besides planned to reduce the rule of collegiate rulings in franc cases, which is expected to velocity up the issuance of judgments.
Limitation of the number of franc cases in courts
In order to reduce the number of court proceedings relating to frank loans, The bill introduces incentives to retreat or terminate them by settlement. The parties who decide to retreat the case from the court will benefit from fiscal advantages. It is besides provided for mechanism of the alleged pre-court for actions in franc casesWhich will let for an early selection of cases going to the ultimate Court. Promoting mediation and judicial settlement by simplifying procedures and removing formal barriers aims at reducing the number of fresh cases and speeding up the resolution of pending proceedings.
Strengthening consumer protection
The bill provides for mechanisms to empower consumers in disputes with banks. Recognising the judgement of the first instance of the consumer’s monetary benefit as enforceable at the time of its announcement or transportation to the bank will let for faster enforcement of claims. The automatic suspension of the work to repay the frank debt upon service of the write-down to the bank is an additional safeguard of the interests of the borrowers, allowing them to avoid further financial burdens during the course of the legal process.
Promoting out-of-court dispute resolution
One of the main assumptions of the bill is encouraging parties to conclude settlements and usage mediation. The draft provides for the anticipation of mediation by judicial referents and for clear deadlines to which the organization may object. It is besides proposed to simplify the rules of communication between the court and the mediator, with a view to improving the negotiation process and improving the effectiveness of out-of-court solutions.
Legislative phase
The assumptions of the draft Act on peculiar Solutions for the designation of Cases concerning Contracts of Denomination or Indexed to Swiss Franc concluded with consumers were published in a list of legislative and programming works of the Council of Ministers. The planned deadline for adoption by the Council of Ministers is the second 4th of 2025.
