Claims of borrowers against the bank are subject to limitation. Check until when you can effectively claim the return of repaid funds.
Generally, in court proceedings against the bank, the borrower claims that the loan agreement is invalid because it contains legal defects. The consequence of the invalidity of the agreement is that both the bank and the consumer have fulfilled their obligations to the other party without a legal basis (the invalid agreement never existed). Undue benefits should be returned.
Property claims, including claims for the return of undue benefits, are subject to limitation. In short, this means that after a certain period, the creditor cannot effectively claim them from the debtor.
Until June 2021, it was assumed that the limitation period for the borrower’s claims runs from the date of repayment of each installment (separately for each installment). However, this approach changed with the ruling of the Court of Justice of the European Union on June 10, 2021 (C-776/19). The CJEU stated that the limitation period cannot begin until the consumer becomes aware of the unfair nature of the loan agreement.
There is no single way to determine the moment when the borrower became aware of the unfair nature of the contractual clauses. If someone sent a payment demand to the bank or filed a complaint, it seems reasonable to assume that they were aware of the defects in the agreement and the limitation period has already begun.
If the borrower did not take any action to recover funds from the bank, it is more difficult to determine when they became aware of the unfair terms of the agreement, and consequently, when the limitation period began. The court examines each such case individually.
It is worth noting that since around 2019, the topic of Swiss franc loans and their defects has gained significant popularity in the media. Without definitively concluding whether the so-called “media hype” is sufficient to establish that the consumer became aware of the unfair terms of the agreement, it should be noted that such a risk exists.
The limitation period for borrowers’ claims is 10 years for installments paid until July 8, 2018, and 6 years for installments paid after that date, with the stipulation that the period always ends on the last day of the year.
As an example, one can point to a borrower who fully repaid their Swiss franc loan in 2019 and did not take any action to pursue claims against the bank. If we assume that the limitation period should be counted from 2019, then this borrower’s claims will expire on December 31, 2025.
The limitation period is interrupted, in particular, by filing a lawsuit or a request for securing the claim.
In summary, the jurisprudence regarding the limitation of claims is favorable to consumers. However, this does not mean that their claims will never be time-barred. If you have not yet addressed your Swiss franc loan, it is worth verifying this issue to avoid losing the opportunity to obtain a refund of undue benefits.
Do you have a Swiss franc loan and would like to know what rights you have? Contact our law firm – we will gladly conduct a free analysis of your loan agreement and present you with options.
