In the first nine months of this year, courts settled over 27% more franc-based cases than in the corresponding period of 2023. Experts highlight that these statistics also include cases closed due to settlements being reached. There has been a significant increase in such agreements recently. Nevertheless, the total number of settled cases remains less than the number of lawsuits filed in this area. The situation in the Warsaw District Court is the opposite, which experts associate with changing regulations. Forecasts for the next few months are varied, and the approach of banks and franc borrowers themselves to reaching agreements will be significant.
Settlement-Driven Acceleration
According to data gathered from 47 district courts, 50.7 thousand franc-based cases were settled in Q1-Q3 this year. This is 27.5% more than in the same period last year, when there were 39.7 thousand such instances. In the opinion of Adrian Goska, a legal advisor from the SubiGo Law Firm, this year-on-year growth is not surprising, considering the ongoing influx of cases and the courts’ drive to quicken the pace of resolution.
A crucial factor that led to this increase in settled cases is the large number of settlements reached. As Wojciech Wandzel, a lawyer and leader of the Banking & Finance Practice at Kubas Kos Gałkowski, comments, banks have been offering very attractive financial deals to swiftly and effectively end the disputes concerning currency loans. Cases where borrowers did not want to settle are still ongoing.
Recently there has been a noticeable increase in settlements, extending their popularity in closing franc-based cases. The reasons mainly emanate from pressure on courts and banks to speed up resolving all franc dispute matters.
The Importance of Regulations
Court data also showed a year-on-year increase in settled franc-based cases. The number of incoming franc cases remains significantly higher, but there is a noticeable reduction in the gap. 56 thousand franc cases were filed in Q1-Q3 2023, compared to 39.7 thousand settled cases. In contrast, the numbers from January to September this year were 54.9 thousand and 50.7 thousand, respectively. However, Warsaw District Court reported over 9.1 thousand franc cases filed, and over 14.2 thousand settled in the first nine months of the year, thus representing an opposite trend within the same period.
Legal advisor Goska explains that this diminishing gap is a clear sign that district courts are speeding up their work. The situation in Warsaw, where there are specific ‘franc departments,’ results from the reorganization of work and growing judges’ experience. Goska also believes that the attitude of franc borrowers themselves towards settlements will also play a crucial role in the coming months.
Increase in Awareness
Lawyer Wandzel predicts that the number of settled cases will remain at a similar level in the coming months. Settlement programs proposed by banks will particularly influence this. He suggests that if a borrower wants to settle efficiently, the best way to end the dispute is to reach an agreement.
In the coming months, the borrowers’ approach to reaching agreements will play a significant role. Increased awareness of the tax risk associated with accepting a settlement in cases of substantial overpayments may lead some franc borrowers to opt to continue the legal process. In this way, they will hope to have the agreement invalidated, which is a more favorable tax solution. Borrowers who do not have such significant overpayments may be more likely to opt for settlements, of course, if the offered conditions are sufficiently beneficial for them.
Source: https://managerplus.pl/przyspieszenie-w-sprawach-frankowych-sady-zalatwiaja-ich-coraz-wiecej-wzrosty-rdr-sa-dwucyfrowe-66842
