• The President of UOKiK, Tomasz Chróstny, deemed PKO BP’s clauses regarding changes to consumer loan interest rates to be unlawful, prohibited their use, and imposed a fine of nearly PLN 80 million on the bank.
• The bank is also required to inform consumers of the decision individually and publish a statement on its website and social media.
• We would like to remind you that prohibited contractual provisions are ineffective by law and are not binding on consumers. Once it becomes final, the decision may help consumers pursue their claims.

UOKiK has concluded proceedings concerning the provisions of a standard agreement used by PKO Bank Polski in addenda to overdraft credit agreements. The President of UOKiK, Tomasz Chróstny, deemed the provisions concerning the rules for changing the interest rate on the revolving credit limit to be unlawful. He obliged the bank to individually inform all consumers affected by the infringement of the decision, to publish an appropriate statement on its website and social media channels, and imposed a fine of nearly PLN 80 million on the bank.

Scope of the disputed clauses

The provisions analysed by the President of UOKiK concern the possibility of unilateral changes to the interest rate on a loan by the bank in the event of certain circumstances. As a rule, such mechanisms are permissible, provided that the conditions for changing the interest rate are formulated in a manner that is unambiguous, precise, and verifiable by the consumer.

– As the stronger party in a contract with a consumer, the bank should act professionally and transparently. Clauses concerning interest rate changes should be formulated in such a way that the consumer knows when and how the costs of the loan may change – emphasises Tomasz Chróstny, President of UOKiK.

The disputed provisions do not sufficiently specify the grounds for changing the interest rate, nor do they indicate how the consumer can verify the legitimacy and scope of such a change. They give the bank a very wide scope for interpretation and, in practice, the possibility of arbitrarily setting the interest rate on the loan. They do not clearly specify, among others, what criteria the bank is to take into account or the relationship between the change in the measures indicated in the provision and their possible weights. As a result, consumers are unable to predict the economic consequences of their obligations to the bank.

Effects of the decision on consumers

A final decision recognising the provisions of a standard form contract as unlawful has an effect on the bank and all its customers who have concluded addenda to contracts based on the standard forms indicated in the decision. Provisions deemed unlawful are ineffective by operation of law and are not binding on consumers – they should be treated as if they were not included in the agreements at all. It is not necessary to have their ineffectiveness confirmed by a court. The courts are bound by the decision of the President of UOKiK regarding the unlawful nature of the clauses.

The decision issued by the President of UOKiK may also be of significant help to consumers in individual claims related to the application of these provisions. That is why an important part of the decision is the bank’s obligation to inform consumers who have concluded addenda to agreements based on the disputed standard forms about the violations. This information will be communicated within one month of the decision becoming final by SMS and e-mail, or by SMS and registered letter if the bank does not have the consumer’s active e-mail address. In addition, the bank has been required to display an appropriate statement on its website for a period of four months and on its Facebook and Instagram social media channels for a period of three months.

Long-term infringement, high penalty

The standard form contracts containing the disputed provisions have been used by PKO BP since 15 December 2018, so the practice is of a long-term nature. During the ongoing proceedings, the bank did not take any action to cease the use of the prohibited clauses. Therefore, in addition to declaring the provisions prohibited and ordering the removal of the effects of the infringement, the President of UOKiK imposed a fine of PLN 79,291,800 on the bank.

The decision is not final. The bank may appeal against it to the Court of Competition and Consumer Protection.