Franc cases

In the case of loan agreements that have not been repaid in full, the demand that should be made first is a request to establish the invalidity of the agreement. The court's decision in this regard makes it possible not only to settle favourably with the bank, but also to cancel the collateral (in particular the mortgage established on the property securing the loan repayment).

In the event that the loan is repaid in full, there is no legal interest in claiming that the contract is void. In such a case, an action for payment must be brought against the bank. The prerequisite for allowing a payment action is the invalidity of the credit agreement (without the court issuing a separate ruling on the subject). The borrower should demand payment from the bank of an amount equivalent to all amounts paid by the borrower under the loan agreement (i.e. instalments, both interest and principal, commission, penalty interest, insurance premiums).

Banks offer borrowers to conclude settlements on increasingly better terms. We carry out a detailed analysis of such proposals, comparing them with the potential benefits of a positive court judgment, ensuring that the settlement includes provisions that safeguard the client's interests (i.e., above all, the bank's waiver of claims).

In the event that the court rules in favour of the borrower on the basis of the two-condition theory, the question of settlement with the bank, i.e. repayment of the loan principal to the bank, remains open. In such a case, we aim to conclude a compensation agreement with the bank on the most favourable terms for the client.

We assist in cases in which the bank has sued clients (or summoned them to pay) for repayment of the loan principal. We oppose the bank's claims against the borrowers' claims, also taking appropriate procedural steps (e.g. raising a plea of set-off, filing a counterclaim).