Have you not yet dealt with your foreign currency denominated or indexed loan? Check why it is worth doing so before the end of 2025.
Property claims – including those related to indexed/denominated loans in foreign currency – are subject to the statute of limitations. The statute of limitations does not automatically cause the claim to “expire” — in legal terms, it still exists. However, the bank can effectively raise the statute of limitations defense, which in practice closes the path to obtaining any refund of the installments that the borrower paid under the defective loan agreement.
In general, consumers have 6 years to seek a refund of payments made (10 years for payments made before July 9, 2018). This period runs from the moment considered to be the due date of the claim and expires at the end of the relevant calendar year. For example, if the claim became due on May 1, 2020, the six-year statute of limitations expires on December 31, 2026.
Due date of claims related to invalid loans
Until June 2021, it was assumed that the statute of limitations for the borrower’s claims runs from the date of repayment of each installment (separately for each installment). However, this approach has changed, as the CJEU ruled that the statute of limitations cannot begin to run until the consumer became aware of the unfair nature of the loan agreement.
There is no single way to determine 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 statute of limitations has already begun to run.
If the borrower has not taken 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 statute of limitations began to run. The court examines each such case individually.
Why is it worth taking an interest in your loan before the end of 2025?
In October 2019, the topic of Swiss franc loans and their defects gained significant popularity in the media. Without definitively determining whether the so-called “media hype” is sufficient to conclude that the consumer became aware of the unfair terms of the agreement, it should be noted that such a risk exists.
In ongoing cases, we observe that courts often refer to this date. If it is assumed that in 2019 the average consumer should have become aware of the defects of the loan, and consequently, their claims against the bank prior to that date became due, then these claims will expire precisely at the end of December 31, 2025.
As an example, one can point to a borrower who fully repaid a Swiss franc loan in 2019 and did not take any action to pursue claims against the bank. If we assume that their claims became due in 2019 after they became aware (or should have become aware with average diligence) of the Dziubak case, then this borrower’s claims will expire at the end of 2025.
How to interrupt the running of the statute of limitations?
The running of the statute is primarily interrupted by filing a lawsuit against the Bank.
Which loans does this apply to?
The above rules apply to all indexed/denominated loans in foreign currency that contain so-called prohibited clauses. From the practice of the Law Firm, it appears that these are particularly loans indexed/denominated to CHF, EUR, USD, but this list is not exhaustive.
Do you have a foreign currency indexed/denominated loan and would like to know what rights you have? Contact our Law Firm – we will conduct a free analysis of your loan agreement and present you with options.
