The Swiss Franc Loan Act – New Rules for Protecting Borrowers in Disputes with Banks

On 7 August 2026, the Swiss Franc Loan Act entered into force. How does it change the legal position of Swiss franc borrowers? (Unfortunately, it applies only to Swiss franc borrowers and not, for example, to borrowers with euro-denominated or euro-indexed loans.)

The Act of 29 May 2026 on Special Measures for the Adjudication of Cases Concerning Loans Denominated in or Indexed to the Swiss Franc introduces significant changes to the way disputes between borrowers and banks are conducted before Polish courts. Its primary objective is to strengthen the procedural protection of consumers asserting claims against banks.

Automatic suspension of loan repayments

Until now, a borrower seeking to challenge the validity of a Swiss franc loan agreement or the unfairness of its contractual terms had to apply separately for interim relief in order to suspend the obligation to repay loan instalments during the proceedings. Whether such relief was granted depended on the court’s discretion.

The new legislation fundamentally changes this approach. Once the statement of claim has been served on the bank, the borrower’s obligation to repay future loan instalments is suspended automatically by operation of law until the proceedings are finally concluded. Consequently, borrowers are no longer required to file a separate application for interim relief.

Protection against adverse legal and financial consequences

The Act also introduces additional safeguards for consumers benefiting from the statutory suspension of repayments.

Failure to pay instalments covered by either a court-ordered interim measure or the statutory suspension may not be treated as a breach or improper performance of the loan agreement.

Furthermore, during the period of statutory protection, the bank may neither terminate the loan agreement on the grounds of non-payment of the protected instalments nor report the borrower to the Polish Credit Information Bureau (BIK).

This solution is of considerable practical importance, as it eliminates the risk of a borrower’s credit history being negatively affected while litigation against the bank is pending.

Faster court proceedings

The Act also introduces several procedural measures designed to accelerate Swiss franc litigation.

Courts are now granted broader authority to issue judgments during closed sessions (in camera proceedings) without holding a hearing where this is not necessary.

The rules governing certain appellate proceedings have also been amended. In specified cases, appeals and interlocutory appeals may be examined by a single judge. In addition, the Act permits courts to take evidence remotely, receive written witness statements and prepare simplified written reasons for judgments.

The purpose of these measures is to reduce the duration of proceedings and expedite the resolution of disputes between consumer borrowers and banks.

Scope of application – limited to Swiss franc loans

It should be emphasized that the Act applies exclusively to loans denominated in or indexed to the Swiss franc (CHF). It does not extend to loans linked to other foreign currencies, particularly the euro (EUR).

This limitation raises legitimate concerns regarding the consistency of consumer protection. Euro-denominated or euro-indexed loans were often structured in the same – or virtually identical – manner as Swiss franc loans. They likewise relied on currency conversion mechanisms based on exchange rates unilaterally determined by banks and contained contractual provisions whose compliance with consumer protection law has repeatedly been challenged before the courts.

From the perspective of consumer protection, it is difficult to justify differentiating borrowers solely on the basis of the currency to which their loan is linked. Defective indexation and currency conversion mechanisms are by no means unique to Swiss franc loans.

De lege ferenda, consideration should therefore be given to extending the scope of the Act to loans linked to other foreign currencies, particularly the euro. Borrowers holding such loans are in a comparable legal and economic position to Swiss franc borrowers, and extending equivalent protection would provide a more coherent and comprehensive legislative solution.

The Act also applies to pending proceedings

The new legislation will also apply to proceedings that were initiated before its entry into force and have not yet been finally concluded.

Accordingly, borrowers who are already involved in litigation against banks will also benefit from the statutory suspension of loan repayments.

The Act additionally introduces incentives encouraging parties to conclude certain proceedings. For example, where a party withdraws a statement of claim, appeal or cassation appeal within six months of the Act entering into force, 50% of the relevant court fee will be refunded.

Summary

The Swiss Franc Loan Act represents a significant development in the protection of borrowers engaged in disputes with banks. The introduction of an automatic statutory suspension of loan repayments, together with procedural reforms aimed at streamlining court proceedings, should substantially improve the legal position of consumers.

At the same time, by limiting its application exclusively to Swiss franc loans, the Act leaves unresolved the question of extending similar protection to borrowers with loans linked to other foreign currencies – particularly the euro – whose contractual structures are based on substantially identical legal mechanisms.