CHF Loan Cases And Settlements

CHF loan cases and settlements

The vast majority of cases end with the invalidation of the loan agreement, which means that borrowers who decide to challenge it in court effectively obtain an interest-free loan. This is because, as a result of a court ruling declaring the agreement invalid, both parties are obliged to return to each other what they have mutually provided. If the loan is still being repaid, the entire outstanding balance is cancelled, and the borrower settles with the bank up to the amount of the loan originally granted by the bank.

Example of settlement

For example:
If a loan indexed to a foreign currency was granted in the amount of PLN 100,000, and the borrower has repaid PLN 180,000 in principal and interest instalments, while the outstanding balance still amounts to CHF 20,000, then as a result of the invalidation of the agreement, the loan will be terminated, the entire outstanding balance will be cancelled, and the bank will ultimately refund the borrower the amount of PLN 80,000.

Similar rules apply both to loan agreements that are still being performed and to those that have already been fully performed and closed, even many years ago, with the reservation that in the case where all principal and interest instalments have already been repaid, there is no outstanding balance, and the bank is obliged to refund an even higher amount of money.

Scope of the Law Firm’s services

As part of handling a CHF loan case, the Law Firm will:

– carry out a free analysis of your loan agreement for prohibited clauses,
– calculate the amount of your claim against the bank, and
– present a cooperation offer.

At every stage of the proceedings, including the pre-litigation stage, the Law Firm is happy to assist in attempts to amicably resolve the dispute with the bank. We support settlement-based solutions.

If the CHF case ultimately goes to court, the Law Firm will file a lawsuit and represent you in proceedings before the court of first and second instance. After obtaining a final judgment, we will help you settle with the bank and remove all loan securities.

CHF settlements

In order to effectively challenge a CHF loan agreement and consequently settle with the bank in respect of a defective loan, it is usually necessary to file a lawsuit. Pursuing a claim takes on average three to five years, which often involves significant costs and stressful waiting for the outcome.

An alternative for the parties to a CHF dispute is a settlement. This is currently the cheapest, fastest, and equally effective solution as a final court judgment (for the loan).

A CHF settlement is a simple agreement concluded between the bank and the borrower, aimed at amicably resolving a dispute related to a loan agreement indexed or denominated in Swiss francs or another currency.

At the beginning of 2025, it can be confidently stated that court jurisprudence has definitively – and in every aspect significant for CHF borrowers – taken their side. This results in CHF settlements being increasingly used by banks as a tool to quickly end problematic legal relationships.

Since entering into a CHF settlement involves determining key conditions for the borrower’s performance of a financial obligation, in each case its provisions should be negotiated with the assistance of a professional dealing with this subject matter.

Banks, especially at the initial stages of discussions with clients, propose less favourable terms than those that can be achieved through short and specific negotiations.

What benefits are associated with signing a CHF settlement?

– quick resolution of the dispute – the settlement allows the disputed agreement to be resolved and settled without the need for lengthy and costly litigation,
– debt cancellation – under the settlement, the borrower’s entire outstanding debt is cancelled,
– refund of at least part of the funds repaid by the borrower under the loan,
– deletion of the mortgage and removal of other loan securities.

In short – what our service consists of

– we guarantee clear and comprehensive service from the first contact with the client until the removal of all securities established to secure loan repayment,
– we have experience in conducting CHF disputes and negotiating all types of CHF settlements, which we use effectively,
– we treat each case individually and respect the needs of every client, therefore we advise in every situation and inform about every available option,
– our remuneration is aligned with market realities; we do not set excessive success fees in client agreements,
– by taking actions aimed at amicable resolution of disputes, we relieve the courts, which – due to a heavy CHF caseload – are particularly interested in supporting settlement-based solutions.

If you have any questions, please contact legal counsel Jędrzej Banaszewski at +48 796 580 170.

Types of settlements in CHF cases

1) Settlement during loan repayment

Currently, it happens that banks propose a settlement during loan repayment, i.e. when the loan agreement has not been challenged in court and is being performed under its original terms.

Banks’ proposals essentially come down to signing an annex to the agreement, under which:

– the borrower agrees to convert the CHF-indexed loan into a PLN loan,
– the bank cancels part of the outstanding balance and sets further repayment based on a variable WIBOR interest rate,
– by signing the annex, the borrower waives any claims against the bank arising from the defective CHF loan agreement,
– the loan agreement continues to be performed under the terms set out in the annex.

2) Settlement after the borrower files a lawsuit

A different situation arises when the borrower files a lawsuit seeking annulment of a loan indexed to CHF, thereby challenging the validity of the loan agreement.

After filing the lawsuit, banks – being in a difficult position due to unequivocally borrower-friendly case law – express readiness to settle amicably. Since the risk of losing the case is extremely high, even initial offers appear satisfactory, although the bank’s proposal is always subject to further negotiation.

As experience from the past year shows, during negotiations concerning settlements of CHF loans, banks make significant concessions. As a result, final settlement terms differ only slightly from what the borrower could obtain in court.

By signing a settlement, within a few months the issue of the CHF loan is definitively resolved – which in Polish conditions is extremely fast.

Under a CHF settlement concluded after court proceedings have been initiated, the bank:

– cancels the borrower’s entire remaining loan balance,
– refunds the borrower an amount agreed through negotiations,
– the loan agreement is terminated,
– as a consequence, the mortgage is deleted and other loan securities are removed.

The amount refunded by the bank depends primarily on the level of overpaid capital-and-interest instalments exceeding the original loan amount.

Since a settlement is intended to be beneficial for both parties, the borrower must take into account that the refund will not be as high as what could be obtained after winning a final court judgment following several years of litigation.

3) Settlement after full loan repayment

CHF settlements mainly concern loans that are still being repaid; however, nothing prevents concluding a settlement after the full repayment of a CHF-indexed loan.

The borrower must first initiate court proceedings to challenge the performed loan agreement and then enter negotiations regarding the refund of overpaid instalments exceeding the original loan amount.

Also in this case, the negotiation outcome will not significantly differ from what the borrower could obtain in court.