Free Loan Sanction
Check whether your credit or loan meets all the conditions specified in the Consumer Credit Act. If not, we will help you take advantage of the Free Loan Sanction – a unique opportunity available to consumers, thanks to which you will be able to recover the reimbursement of repaid costs, such as interest or commission, or repay the principal amount of the loan itself. That is, as much as the bank or non-bank entity borrowed, you will pay it back – without any profit for the lender. If the loan has already been repaid, you are entitled to a refund of the overpaid amount.
Free Loan Sanction – what is it?
The sanction of a free loan finds its normative basis in Art. 45 of the Act of May 12, 2011 on consumer credit. If the creditor violates the obligations set out in this provision, the consumer has the right to return the loan without interest and other credit costs due to the creditor, within the time and in the manner established in the contract.
Therefore, the Free Loan Sanction comes down to the fact that the consumer who is a borrower repays the lender only the borrowed capital, without any additional costs constituting the bank’s profit. The legislator assumes here – typical of consumer transactions – that an entrepreneur (e.g. a bank) committing violations against natural persons who do not run a business cannot benefit from such a situation. The consumer therefore benefits from special legal protection, which has an important financial dimension for him.
The Free Loan Sanction can only be used in strictly defined cases related to violations expressly indicated in the Consumer Credit Act by a bank or other financial institution. Importantly, the consumer can exercise this right only within 1 year from the date of execution of the contract, or during its term and repayment of the loan. However, in the first case, i.e. after repayment of the loan and expiry of the contract, you should act quickly – the claim expires after one year from the repayment of the loan.
What should you do? How can we help you?
In order for the free loan sanction to be effective, the consumer must submit an appropriate written declaration to the lender. The content of this statement is important, it is worth preparing it precisely and at a high substantive level. The statement should clearly indicate specific types of violations and the resulting consequences. If the lender fails to respond appropriately, a lawsuit must be filed in court.
What types of credit does the Free Credit Sanction apply to?
The sanction applies to consumer cash loans, student loans, loans (including non-bank loans), car loans, consolidation loans and other consumer liabilities of a similar nature. Sometimes it may also apply to mortgage loans, depending on the content of the concluded contract. Please remember that the type of contract and whether it is subject to the Free Credit Sanction are determined not by its name, but by the content and elements contained therein.
Importantly, the Free Loan Sanction applies not only to loans granted in PLN. The sanction applies to loans granted in an amount not exceeding PLN 255,550 or the equivalent of this amount in a currency other than Polish currency. This means that your loan granted in dollars, euros or another currency, if it does not exceed the equivalent of this amount, will also be eligible for the Free Loan Sanction.
What are the benefits of the Free Credit Sanction?
The benefits may include:
- significant reduction in installments (even by half),
- refund of capital interest and costs incurred,
- write-off of interest and costs until the end of the loan agreement,
- no impact on creditworthiness assessment,
- return of capital only (only the amount borrowed).
How much can you realistically get back?
The values obtainable in connection with the reason for payment under the Basic Credit Sanction are based on several factors, such as the amount of the account provided, the amount of frequency, the duration of the extension agreement and additional credit-related fees that the consumer must pay. These fees include commissions, insurance and other additional fees.
What documents will be needed for the analysis?
A scan of the loan agreement, along with all annexes and amending annexes, is the most important document we need. We can perform the entire analysis remotely.
Contact us.
