Close [x]
By using the site you express your consent to the use of cookie files, some of which may be already saved in the browser folder.
For more information, please follow the Privacy and using cookie files policy for the service

Office of Competition and Consumer Protection

Increase font sizeDecrease font sizeHigh-contrast versionText versionText versionRSS ChannelGet QR codeWersja polska

You're here: Home > About us > About us > News

Cheaper consumer credits - UOKiK's proposal for the anti-crisis shield

< previous | next > 01.04.2020

Cheaper consumer credits - UOKiK's proposal for the anti-crisis shield
  • Decreasing the maximum value of the non-interest costs of a consumer credit – this is one of the UOKiK’s proposals as part of the Polish “anti-crisis shield”.
  • We will not allow a situation where consumers who find themselves in a difficult situation during the coronavirus epidemic fall into a debt trap – says President of the UOKIK, Tomasz Chróstny.

The restrictions involved in the coronavirus epidemic have resulted in many persons losing their source of income or suffering a major decrease in income. As a result, they may take out instant, short-term consumer loans. For example, a consumer may need a loan of PLN 1,000 to maintain their financial liquidity until the end of the month. Such loans are ostensibly attractive offers with a relatively low interest rate, but in fact the borrower has to pay much more in non-interest charges, e.g. commissions. President Tomasz Chróstny has proposed an amendment that will significantly reduce such costs. The reason is that after the epidemiological crisis is over, such consumers will be left with major debts.

“As part of the anti-crisis shield, we have proposed that the maximum level of non-interest charges for consumer credits (including loans to consumers) should be temporarily reduced by statutory instruments. For instance: at present, if a consumer borrows PLN 1,000 for seven days, the costs may amount to more than PLN 250. According to the UOKiK’s proposal, that amount would be five times smaller, about PLN 50,” explains President Tomasz Chróstny.

In the case of consumer credits granted for a period longer than one month, the UOKiK proposal reduces the costs involved by about a half. A consumer borrowing PLN 1,000 for three months would have to pay, apart from the interest, no more than PLN 165 – instead of the PLN 324 that is allowed at present.

A reduction in non-interest charges is absolutely crucial for reducing the total costs of consumer credits or loans. In the case of short-term credits, the interest rate is relatively low, up to 9 per cent per annum. In our example, a consumer borrowing PLN 1,000 for a week would pay interest in the amount of approx. PLN 2.

The UOKiK proposal concerning regulatory amendments as part of the anti-crisis shield provides that in the case of loans with a term of less than 30 days, the non-interest charges shall not be more than 5 per cent, and in the case of products with a term of 30 days and more, the costs may be up to 15 per cent plus 6 per cent for each year of the loan – for instance, not more than 21 per cent for a one-year loan. Additionally, irrespective of the loan term, the level of non-interest charges shall not exceed 45 per cent.

“At the moment, the final shape of the anti-crisis shield is being determined and I hope that our proposals will also be included. I also hope that entrepreneurs will respond appropriately in this difficult, but only temporary period. Loan companies and other financial institutions should address consumer needs and implement pro-consumer solutions. This is necessary for consumers to be able not only to repay such products, but also to use them at a lower cost at this difficult time. This is a testing time for all of us – entrepreneurs and consumers. We should emerge from this crisis with the belief that institutions providing financial services are socially responsible and can come up to expectations,” says President Tomasz Chróstny.

The upcoming weeks represent many threats to consumers, including the risk of a considerable income reduction and falling into a debt trap. For this reason, the President of the UOKiK has developed a package of countermeasures for the period of the epidemic. If the provisions proposed by the UOKiK are accepted, exceeding the permissible levels of non-interest charges will result in major financial penalties, up to 10 per cent of the annual turnover.

Should you have any doubts concerning financial products, we encourage you to obtain free legal advice. Consumers can consult a lawyer by phone: 801 440 220 and 22 290 89 16, Monday to Friday from 8:00 to 18:00, and by email: [SCODE]cG9yYWR5QGRsYWtvbnN1bWVudG93LnBs[ECODE].

Consumer support:

Phone: +48 801 440 220 or +48 22 290 89 16 – consumer helpline
E-mail: [SCODE]cG9yYWR5QGRsYWtvbnN1bWVudG93LnBs[ECODE]
Consumer ombudsmen – in your town or district
Regional Consumer Centres: 22 299 60 90 –
European Consumer Centre: 22 55 60 600 – in cross-border issues

Additional information for the media:

UOKiK Press Office
Pl. Powstańców Warszawy 1, 00-950 Warszawa, Poland
Phone +48 695 902 088, +48 22 55 60 246
E-mail: [SCODE]Yml1cm9wcmFzb3dlQHVva2lrLmdvdi5wbA==[ECODE]
Twitter: @UOKiKgovPL

Attached files


Read also

Fine for risky ATV investments
Fine for risky ATV investments

Investing in vehicles and deriving income from renting them - this was the offer of Jakub Lesniewski Total Finance from Warsaw.   ...>

UOKiK participates in 22nd ICN Annual Conference
UOKiK participates in 22nd ICN Annual Conference

This year's 22nd Annual Conference of the International Competition Network (ICN) is hosted by the Spanish CNMC in Barcelona from 18 to 20 October 2023.  ...>

Clear prices on Black Friday
Clear prices on Black Friday

Since the beginning of this year, entrepreneurs who inform about price reduction for goods or services have been obligated to inform about the lowest price from 30 days before the reduction. ...>

CLOUT MMA - UOKiK initiates a preliminary investigation
CLOUT MMA - UOKiK initiates a preliminary investigation

The President of UOKiK, Tomasz Chróstny, has initiated a preliminary investigation into the CLOUT MMA streaming service and requested explanations from companies operating under the business names No Limit and Multi Agency Górska.   ...>

Radio market - end of preliminary investigation
Radio market - end of preliminary investigation

Tomasz Chróstny, President of UOKiK, has closed the investigation into entities forming the Radio Research Committee. ...>

More than pln 5 million fine for manipulating mail order sales of dietary supplements
More than pln 5 million fine for manipulating mail order sales of dietary supplements

There were supposed to be free samples of supplements, while bills were coming in for a year’s supply of the product along with a subscription.   ...>


See also: