Abstract

The Swiss franc mortgage loans given to the general public during 2004-2008 are becoming more and more of a social issue in Poland. The plunge which the Polish currency (zloty) experienced against the Swiss franc at the end of 2008, combined with a prior prolonged decline in the real property market, caused the contractual liabilities related to loans indexed to the Swiss franc to far exceed the value of the underlying property. As a result of the ongoing sovereign debt crisis, the European job markets continue to deteriorate. One will not have missed the news of decisions passed by courts in some countries questioning the lawfulness of mortgage loans denominated in foreign currencies granted to non-professional consumers of financial services. The author attempts to explore the question whether a Swiss franc loan can be considered a high-risk investment product, and in what proportion the risk is shared by the customer and the bank. He also aims to find out whether a Swiss franc loan, as a banking product, corresponds to the existing level of knowledge and awareness on the part of the mass average consumer of financial services. In addition, he seeks to establish a standard in financial product information requirements that should be met by all financial institutions in selling high-risk products to individual, non-professional customers. The analysis leads to the hypothesis that banks might have failed to use due professional diligence in providing their customers with accurate and sufficient information on the product. The paper is concluded by a review of legal arguments that could be used by loanees to exercise their rights in cases where banks might have breached the product information standards.(original abstract)