• EGF Council, a financial intermediary, applied abusive contract terms in the course of its operations.
• The actions of EGF Council were intentional, their aim being to maximise profits at the expense of consumers.
• A financial penalty in the amount of over PLN 5.7 million was imposed upon the company.

Europejska Grupa Finansowa Council is a credit broker operating under the “Personal Finanse” brand. The Office of Competition and Consumer Protection performed an analysis of the standard contract terms in order to check for the presence of abusive clauses. The proceedings against the company began in December 2016. All in all, the President of the Office considered 13 different contract terms to be abusive.

“The clauses applied by EGF Council in its contracts are ambiguous and imprecise. They are also contrary to acceptable practices. For instance, a customer reading through the contract would not have known how much the company itself would charge for its services due to the fact that the amount of remuneration was not specified. This was a deliberate move, designed to ensure that the company could make a substantial profit” – says
Marek Niechciał, President of UOKiK.

The Office found a number of prohibited terms in the company’s contracts. These terms provided that:

• the consumer would be under an obligation to pay remuneration to EGF Council for brokering the loan. However, the consumer would not be informed of the amount of such remuneration. Example: The Ordering Party hereby undertakes to pay remuneration to the Contractor in the amount specified in the final decision approved by the Ordering Party.

• In its contracts, EGF Council would also place the consumer under an obligation to grant recommendations to the company, representing that the company was trustworthy and reliable. The company’s consumers were also under an obligation to declare that they have adopted the decision on taking out the loan on their own, without any pressure being exerted by company employees. Such declarations could make it difficult to enforce claims in the future. Example: I hereby recommend the company EGFC SA, doing business under the PERSONAL FINANSE brand and having its registered office in Wrocław. The company is a trustworthy business and provides its services in a reliable and professional manner.
• The consumers would also be compelled to declare that the terms and conditions of the contract were agreed upon in the course of negotiations, even though they were, in fact, unilaterally proposed by EGF Council. The intention behind these arrangements was that these terms and conditions would not be considered abusive due to the fact that they had allegedly been agreed upon through negotiations.

A financial penalty in the amount of over PLN 5.7 million was imposed upon EGF Council for the use of abusive contract terms. The decision is not final and the undertaking has decided to appeal to a court of law.

This is not the first time that the Office has adopted a decision concerning this particular financial intermediary. In 2017, the UOKiK considered that EGF Council violated collective interests of consumers, imposing a penalty in the amount of PLN 6.3 million. Furthermore, the UOKiK also been filing reports concerning the activities of this company with law enforcement agencies for a couple of years. The proceedings concerning the activities of EGF Council are being conducted by the Regional Prosecution Service in Wrocław. The proprietors of the business were detained at the request of the Prosecution Service; some of them were arrested.

From April 2016, the President of UOKiK has the power to decide whether the terms and conditions contained in a contract constitute prohibited clauses. If you suspect that an entrepreneur you have dealings with applies such clauses, remember to notify the UOKiK. Please e-mail us at uokik@uokik.gov.pl.

Additional information for the media:

Press Office of the UOKiK 
Pl. Powstańców Warszawy 1, 00-950 Warszawa
Phone: 695 902 088
Email: biuroprasowe@uokik.gov.pl
Twitter: @UOKiKgovPL