Funding secured for consumer claims against banks in Poland

A funding arrangement has been secured for a portfolio of consumer credit claims against banks in Poland, centred on the free credit sanction provided under the Consumer Credit Act. This mechanism allows consumers to limit repayment to the principal amount only, with no interest or fees, where a bank has breached statutory requirements such as failing to provide mandatory information, including improper contractual terms, or charging excessive non-interest costs. Effectively, the loan is treated as interest-free. While the sanction is generally applicable to consumer credit agreements, it does not extend to most mortgage-secured loans and is subject to statutory thresholds and time limits.

The transaction involves a specialized investment fund focused on consumer claims, working alongside selected law firms and entities with experience in pursuing free credit sanction litigation. The funded portfolio comprises both newly originated cases and ongoing proceedings, with a total claim value of approximately PLN 20 million (USD 5.5 million).

Advisor Miko Burzec assisted in facilitating the transaction, helping to identify and align the appropriate sponsors and to present the opportunity to the investor, whose interest in the deal was driven by the diversified portfolio, the profile of the defendant banks, and the significant upside potential in light of increasingly consumer-friendly rulings in Poland and across the EU.