To compensate clients for losses, Alior Bank will not charge interest or will return interest to clients it took for the last 12 months of their contract. The commitment is the result of an UOKiK decision addressing the bank’s "Guaranteed lowest installment rate" consumer credit advertisement

Poland’s Office of Competition and Consumer Protection (UOKiK) initiated proceedings against Alior Bank in January in response to the bank’s consumer credit advertisement “Guaranteed lowest installment rate”. Using a variety of media, the campaign ran from April 1 through September 2015, promising consumers the lowest installment rates on credit. However, it did not inform consumers of the additional conditions that had to be fulfilled to take advantage of the offer. This led UOKiK to conclude the actual conditions of the promotion may have misled consumers.

According to the rules of the promotion, Alior Bank did not guarantee the lowest rate on the market, but only one lower than that offered by other banks. However, consumers had to find the lower rate themselves, and present a form confirming the competitive conditions or a contract signed with another lender.

Of the bank’s promotion, UOKiK President Marek Niechciał said, “Hearing the words ‘the guaranteed lowest rate’, consumers could have felt confident they were getting the cheapest credit on the market. At the same time, they were required to compare offers and find the cheapest, and, as such, could have been misled. If they had known that this was not the cheapest offer, they may not have opted to take the credit.

Alior Bank has committed to compensating consumers who took credit using the terms of the misleading offer. This means it will not charge interest on current contracts and will return the interest it took, even if the credit has already been paid. Customers who have a consumer credit agreement in the framework of the promotion will receive a letter informing them of the return policy and UOKiK’s decision. The bank will also be airing a 15-second statement on Polish Television and, within five months of the decision becoming binding, submit a report on the execution of its commitments.

Additional information for the media

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