Loan in Euro - annulment

The popularity of euro-denominated loans stemmed from their previously attractive financial terms. Banks offered them as an alternative to loans in Polish zloty, attracting customers with lower interest rates. This, in turn, translated into lower monthly installments. At that time (around 2011), individuals planning to purchase an apartment or house saw such loans as an opportunity to reduce borrowing costs.

By opting for a euro mortgage, borrowers hoped that the stability of the common European currency would guarantee them predictable and favorable repayment terms. The low interest rate was a decisive factor, making the banks' offers appear very attractive. However, in practice, it turned out that the euro exchange rate against the zloty could undergo significant fluctuations, leading to increased debt and, consequently, rising loan costs.

Currently, many individuals are struggling with the consequences of unfavorable exchange rate changes and unclear loan agreement provisions. Fortunately, this is not a situation without recourse. Many such agreements contained abusive clauses. This opens the way for legal action, including even the annulment of the euro loan.

Is it possible to take out a euro mortgage?

Currently, in Poland, banks do not grant euro mortgages on the same terms as in the past. Due to legal regulations and decisions by the Financial Supervision Authority, foreign currency loans have been almost entirely withdrawn from banks' offerings. This means that individuals seeking financing for real estate purchases in Poland must rely on loans in Polish zloty.

The decision to withdraw such offers resulted from the problems faced by clients who previously opted for foreign currency loans. Exchange rate fluctuations, difficulties in servicing debt, and increasing legal issues related to unfair contract terms led to these financial products becoming unavailable.

Euro Loan — Annulment

Many borrowers question whether it is possible to annul a euro loan. The answer to this question is yes, but it requires a detailed analysis of the agreement and a precise approach to the entire legal process. 

In Poland, court rulings increasingly annul loan agreements containing abusive clauses.

The most significant provisions concern the mechanism for currency exchange rate conversion. Banks often introduced clauses allowing them to unilaterally determine the euro exchange rate used to calculate loan installments. Such practices are deemed unfair and can serve as grounds for annulling a euro loan.

In the event of loan annulment, the court may decide that the loan agreement is considered void from the moment of its conclusion. This means that the borrower and the bank mutually return the benefits performed under the agreement. The borrower may demand the return of overpayments resulting from unfair practices.

Annulment of a Euro Loan — Seek Assistance from an Experienced Attorney

The process of annulling a euro loan requires in-depth knowledge of legal regulations and court practice. Attorneys from our law firm have extensive experience in handling cases related to foreign currency loans, enabling us to effectively represent our clients' interests.

We offer a comprehensive analysis of your loan agreement, identification of potential abusive clauses, and support at every stage of the legal proceedings. Our goal is to ensure your full legal security and recover the funds you are entitled to.

If you have a foreign currency loan and are considering whether it is possible to annul your euro loan, contact us. Trust our attorneys, who successfully assist clients in similar situations. Together, we will find the best solution for your case.