Poland - PKO BP - decision of UOKiK

Determining rates of consumer credit at one’s discretion, only one-day validity of information form stipulating loan conditions – to name a few practices applied by PKO BP. The bank has been imposed a fine exceeding PLN 29 mln (ca. EUR 7 250 000).

Proceedings against the bank were instituted in November, 2012. UOKiK was concerned about standard forms of consumer credit contract, containing abusive clauses as well as the fact that the bank failed to fulfil the information obligations. The President of UOKiK challenged six practices applied by PKO BP.

The bank made a stipulation that the credit interest may be altered. It provided, however, neither the circumstances when such a change may occur nor its extent. Such terms provide an undertaking with an opportunity to make any decisions concerning the change of interest rate. A consumer is not able to predict the time and volume of increase in the interest rate. In the opinion of UOKiK, this clause is too general and ambiguous.

PKO BP failed to perform its information duties as well. Prior to contract conclusion, every financial institution is obliged to provide a consumer with the information form containing e.g. information on the cost of taking a loan. Such document should be valid so long that a consumer could easily compare it with other offers. Forms applied by PKO BP were in force for one day only – not long enough to make an informed decision concerning taking an obligation. Moreover, UOKiK discovered that the bank had failed to provide in forms the information on arrear charges in instalments payment and interest rate for overdue debts. This way the entrepreneur restricted the rights of consumers to be provided with complete and reliable information.

For violating collective interests of consumers, PKO BP has been imposed a fine amountig to PLN 29 063 982 (ca. EUR 7 265 995). The decision is not final – the undertaking may appeal against it. The bank commited to change a part of practices challenged by the President of UOKiK.

At the same time, UOKiK would like to remind consumers that in the case of a dispute with a financial institution, they may seek assistance of municipal or poviat consumer ombudsmen or non-governmental organizations – Consumer Federation, Association of Polish Consumers. Advice may also be obtained, free of charge, by calling the following telephone number: 800 007 707.

Read the press release in Polish.