• During the first effective week of the credit holidays regulations UOKiK received ca. 550 complaints from consumers.
• In result of actions taken by the Office, many banks changed their practices which were unfavourable towards consumers, e.g. allowed for applications for instalment suspension for any period within the law.
• We are monitoring the situation and react immediately to any irregularities on part of the banks reported by consumers - said Tomasz Chróstny, President of UOKiK.

Friday, July 29^th was the effective date of the Act on Social Financing for Economic Endeavours and Borrower Aid, which introduced credit holidays. They will be available to any consumer who has taken out a mortgage loan in Polish currency for their own housing needs. Exemption from instalment payments is to include a maximum of 8 months until the end of 2023. As part of his investigations*, the President of UOKiK has been monitoring how banks inform the consumers about the possibility to suspend repayment and whether they hinder them in taking advantage of credit holidays from the very beginning.

- During the first effective week of the credit holidays regulations we received ca. 550 complaints. They mainly pertained to the electronic application process, the banks requiring separate different applications to suspend each instalment, threatening consumers with a negative impact of credit holidays on credit rating, or hindering credit overpayment if instalments were suspended - said Tomasz Chróstny, President of the Office for Competition and Consumer Protection.

- We take each complaint very seriously. We are monitoring the market, including information posted on the banks’ websites. In case of observed irregularities, we immediately demand explanations from the banks and a change of the questionable practices - he added.

The President of UOKiK met with representatives of 17 banks one day before the effective date of the regulations. He emphasised that the credit holidays application process needs to conform to the Act and banks should make it easier for consumers to take advantage of these holidays. He clearly stated which practices will not be accepted. A bank’s duty is to allow their customers to submit a single application for the periods covered by the holidays. On the other hand, it is unacceptable to state that taking advantage of credit holidays may negatively impact credit rating. The President of UOKiK also reminded that in accordance with the Act, suspension of instalments is effective on the date when the application is served.

- We see both great interest in credit holidays from the consumers and a change of practices in the banking sector. The websites of all banks now include information on the possibility of taking advantage of credit holidays. An increasing number of banks enable consumers to suspend eight instalments per application within the deadlines and on the terms and conditions in accordance with the laws in force since July 29^th. We continue our activities to eliminate infringements on the collective interest of consumers, including those resulting from misleading the consumers. We encourage banks to adopt a constructive outlook and efficiently remedy irregularities in the process of granting statutory credit holidays - says Tomasz Chróstny, President of UOKiK.

Problems appearing in regard to complaints and bank reactions

• Requirement to apply for suspension of each instalment separately. In accordance with the Act, the consumer’s application needs to indicate a period or periods for which the payment has been suspended. This means that it is the consumer’s choice whether they want to apply for credit holidays once for all eight possible periods or do so successively in separate applications. In the meantime, many banks illegally required a separate application for each instalment or quarter. Currently, after an intervention by the Office, 11 out of 17 investigated banks allow applications for any period within the law.
• Hindering the application process. The complaints indicate that there are banks which hinder the submission of paper applications when the consumer uses e-banking or do not accept mailed applications.
• Application date. The Act clearly indicated that an instalment is suspended “on the date of application service.” Therefore, if the consumer applied on the date of instalment payment, the bank needs to process and apply it. Furthermore, if e.g. the bank collected an instalment in the morning, and the consumer submitted the application via e-banking in the evening, the bank should return the money it collected. Meanwhile, many banks required the application to be submitted one day before instalment payment at the latest. Currently - after our pleas - they are withdrawing from this practice. The requirement is still enforced by 4 banks - if they do not change this practice, they will have to contend with accusations of the President of UOKiK. At same time, it is worth showcasing a positive example: one bank announced that it will examine applications submitted after the instalment payment date - until the last business day of the month for which it is due.
• Threating loss of credit rating. Messages for consumers indicate that some banks suggest that taking advantage of credit holidays may result in difficulties in obtaining financing in the future, also from other financial institutions. During an online application process, one bank requires confirmation that the customer has been informed that the information on instalment suspension will be passed on to the Credit Information Bureau (Biuro Informacji Kredytowej - BIK). Credit holidays do not lower credit rating and information on taking advantage thereof will be submitted to BIK as a neutral notification on the course of the liability. A condition for taking advantage of credit holidays is not the customer’s financial difficulties, and therefore, there is no legal or substantive basis for concluding that it automatically means that the customer is having problems with fulfilling their obligations or may have them in the future.
• Sum of subsequent instalments. In accordance with the law, taking advantage of credit holidays is free of charge. The bank may not collect or charge any interest in this period, and the borrower only incurs costs of insurance. Meanwhile, consumers report to UOKiK that they received a payment schedule, where interest instalments in subsequent months after suspension are significantly higher than before the suspension or that the bank only envisages interest payments after the holiday (without repaying the principal). We are clarifying the issue.
• Hindering credit overpayment. The President of UOKiK requested to, if at all possible, use the money saved through instalment suspension for credit overpayment. In result, the consumer would have less to repay in the future and could gain on interest. Only 7 out of 17 banks reviewed provide information about the possibility of credit overpayment during credit holidays. The Office, however, is receiving signals that there are also banks which hinder overpayment by their customers. For example, consumers are misinformed in branches that overpayment is impossible during the instalment suspension period. Additionally, one bank adds the suspended interest instalment to the principal. We asked that bank for clarification.

* Currently, explanatory proceedings include 17 banks: Alior Bank, Bank Handlowy w Warszawie, Bank Millennium, Bank Ochrony Środowiska, Bank Pocztowy, Bank Polska Kasa Opieki, Bank Polskiej Spółdzielczości (Grupa BPS), BNP Paribas Bank Polska, Credit Agricole Bank Polska, Getin Noble Bank, ING Bank Śląski, mBank, Pekao Bank Hipoteczny, PKO Bank Hipoteczny, Powszechna Kasa Oszczędności Bank Polski, Santander Bank Polska, SG Bank.

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