Supreme Court rules in favour of consumers in case concerning loans indexed to Swiss franc

ZAGREB, Sept 17 (Croatia Sun News) – The Supreme Court has ruled that banks breached the collective interests and rights of holders of loans originally pegged to the Swiss franc, the court said on Tuesday.

The court reported that it had refused a motion by the defendant for a review of a case in which the Croatian Consumer Protection Association sued eight domestic banks to protect their collective interests and rights.

Court spokesman Zeljko Pajalic said that the court’s ruling contained the conclusion that “in the period specified the banks breached the collective interests and rights of consumers-loan holders by concluding loan contracts containing unfair and invalid contractual regulations under which the loan principal was tied to the Swiss franc (currency clause), without negotiating the matter with individual loan holders.”

“The contested ruling of the second-instance court has been partly quashed (without ordering a retrial) in the part in which the banks were ordered to suspend the procedure in question as a final ruling on the matter had already been handed down.”

In individual lawsuits physical and legal entities may refer to the plaintiff’s motions that were upheld in this case, and the conclusions are binding for courts in dealing with individual lawsuits, the Supreme Court said.

(Source: Hina)

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