Amendment of the law on support for borrowers with housing loans

The Sejm has referred for further work in the Public Finance Committee the presidential amendment to the law on support for borrowers who took out a housing loan and found themselves in a difficult financial situation. This means that those repaying so-called franking credits can forget about the spread law and the full conversion of their obligations into zloty. However, they can effectively defend themselves against high instalments and over-indebtedness.

The law is expected to enter into force on 1 January 2018, if President Andrzej Duda's draft is adopted by MPs. What does it mean? People with housing loans will receive monthly support of PLN 1.5-2 thousand for 3 years. They will be able to repay the interest-free financial support for 12 years, provided the cost of the loan exceeds 50 per cent of their income. Many borrowers, however, have not waited for legal solutions, which currently boil down to debt rollover, i.e. de facto extension of the repayment period (from e.g. 30 to 42 years), and are themselves trying to recover, through the courts, the instalments they claim to have overpaid or to effect a complete debt relief through consumer bankruptcy. And the case is substantial, involving 600 000 agreements and as many as one million people who are repaying franking credits.

The material appeared on dziennikprzedsiebiorcy.pl:

27 October 2017:
" Borrower, go out on a limb effectively