Borrowers' Right To Compensation From Banks For Unfair Loan Terms Confirmed By The CJEU

In its preliminary ruling delivered on 15 June 2023 in the case of Arkadiusz Szczesniak ("A.S.") v. Bank M. SA (the "Bank") (C-520/21), the Court of Justice of the European Union (the "CJEU") concluded that consumers can demand compensation from banks beyond the reimbursement of monthly instalments paid by them, where the loan agreement with unfair terms is declared null and invalid.

Background to the case brought before the Polish District Court

Back in 2008, A.S. and his wife concluded a 28-year mortgage loan agreement with Bank M., the terms of which were not individually negotiated. The mortgage loan agreement was FX-denominated, as the customers paid the monthly instalments in Polish Zlotys after conversion thereof using the Swiss Franc's selling rate.