Incorrect indication of the annual percentage rate of charge, too short validity period of information sheets – these were the most common irregularities found by UOKiK in agreements signed by SKOK-i (credit unions) with their consumers. This year, the President of UOKiK has carried out seven proceedings and has fined SKOK-i with the total of nearly PLN 300 thousand

Spółdzielcze Kasy Oszczędnościowo-Kredytowe (SKOK, Member-Owned Financial Cooperatives) engage in accumulation of financial resources, cash lending and insurance brokerage. Unlike most financial institutions, however, SKOK-i do not operate as joint-stock companies, but as cooperatives. It means that in order to use their services one has to become their member, i.e. one has to, among other things, make a financial contribution in the amount specified in the statutes of the credit union concerned. There are now 55 SKOK-i operating in Poland. Since October 2012, they have been supervised by the Polish Financial Supervision Authority. UOKiK looks into their offers, too, monitoring their compliance with the provisions of agreements signed with consumers.

In 2013, the President of UOKiK issued seven decisions concerning: SKOK Stefczyka in Gdynia, SKOK Kujawiak in Włocław, SKOK Nike in Warsaw, SKOK Wołomin, SKOK Jaworzno and SKOK Piast in Tychy (two decisions). The fines imposed by UOKiK totalled PLN 282 557. It is worth mentioning that most of undertakings inspected by UOKiK decided to discontinue the practices objected to and thus managed to avoid financial sanctions. As discovered by UOKiK, most irregularities were associated with incorrect indication of the annual percentage rate of charge (APRC) and contractual provisions which made it possible for SKOK-i to terminate the agreement when the loan was withdrawn from their offer.

One of the latest decisions of the President of UOKiK has been taken with respect to SKOK Nike in Warsaw. The proceedings revealed that SKOK Nike failed to provide borrowers with reliable information on the APRC. Its calculation was based on the erroneous assumption that the costs of the loan being credited had been taken into account in the payment amount. Consumers who were given incorrect information about the APRC might have thought that the loan offered by Nike was much more advantageous than loans offered by competitors. The costs of the loan were added to the payment amount, reducing the amount actually paid to consumers. As a result, they had less cash at their disposal than they had expected when accepting the offer. In addition, SKOK Nike charged unreasonable costs on customers withdrawing from their loan agreements, which was a prohibited practice too. Contrary to the law, the entrepreneur charged interest not only on the principal loan amount, but also on the commission and insurance amount. The President of UOKiK imposed on SKOK Nike a fine amounting to PLN 7 595 for making it difficult for customers to withdraw from their agreements. No penalty, however, was imposed for other challenged practices, as they were discontinued by Nike when the proceedings were still in progress.

SKOK Piast in Tychy was involved in similar practices - it indicated the APRC incorrectly and charged interest on the loan costs in the case of a withdrawal from an agreement. Moreover, the undertaking’s information sheets were only valid for one day. In the opinion of UOKiK, consumers interested in the offer should have been given more time to think it over and to compare it with loans offered by competitors. During the proceedings, SKOK Piast decided to extend the validity period of its forms to 3 days. Having concluded the proceedings in October 2013, the President of UOKiK imposed on the undertaking a fine  -PLN 115 215.

SKOK Wołomin was another credit union which violated collective interests of consumers. Its agreements contained a clause regarded by UOKiK as prohibited. Under that clause, SKOK Wołomin could change the interest rate of a loan agreement during its term, on a discretionary basis, due to any change in the interest rates announced by the National Bank of Poland or in the consumer price index announced by the President of the Central Statistical Office. As a result, even a slight change in the interest rates by the central bank could be used by SKOK as a pretext for a significant increase in the interest rate of the loan. The fine imposed by the President of UOKiK on SKOK in Wołomin amounted to PLN 159 747. The practice objected to has been discontinued.

Assistance for consumers

Before choosing a loan provider, consumers are encouraged to read advice which is available at www.zanim-podpiszesz.pl. The site presents essential information on dangerous legal tricks used by lenders, a special calculator for calculating the cost of a loan and prudent borrowing rules. On this site, consumers will also find answers to the most common questions on borrowing money, which have been especially prepared to help them to make financial decisions. Assistance may also be sought from the Consumer Federation under the number: 800 007 707 (toll free), or from its branch offices, while the Association of Polish Consumers will answer questions sent by electronic mail to the following address: [SCODE]cG9yYWR5QGRsYWtvbnN1bWVudG93LnBs[ECODE]. Advice on agreements with financial institutions may also be obtained, free of charge, from poviat and municipal consumer ombudsmen.

Additional information for the media:
Małgorzata Cieloch, Spokesperson for UOKiK
Department of International Relations and Communication
Pl. Powstańców Warszawy 1, 00-950 Warszawa
Phone: +48 22 827 28 92, 55 60 314
Fax +48 22 826 11 86
E-mail: [SCODE]bWFsZ29yemF0YS5jaWVsb2NoQHVva2lrLmdvdi5wbA==[ECODE]