The Croatian National Bank (HNB) reported on Wednesday that it will review the proposed annex to the contracts sent by Erste Bank to borrowers in ‘Swiss francs’ along with the conversion calculation, and that it will act in accordance with its powers if any inconsistencies with the provisions of the law regulating consumer crediting are identified.
– The Croatian National Bank has been informed about the content of the disputed provision of the proposed annex to the loan contract, which is in the process of converting loans with a currency clause in Swiss francs sent to its borrowers by Erste & Steiermärkische Bank, and is also aware of the open letter from the Franak Association regarding the mentioned provision. The HNB has supervisory authority over the application of the Consumer Credit Act and regulations enacted under that law at credit institutions in a manner prescribed by special laws governing the operations of credit institutions as creditors. In this regard, we will carefully review the proposed annex to the contract from Erste & Steiermärkische Bank and see if there are any inconsistencies between the provisions of the proposed annex and the provisions of the law regulating consumer crediting. If such inconsistencies are identified, the HNB will act in accordance with its powers under the law, the central bank stated in response to inquiries about warnings from associations regarding the annexes to the contracts sent to users by Erste Bank.
The Franak Association warned on Tuesday that Erste Bank intends to violate the provisions of the Consumer Credit Act, which stipulates that “if the consumer accepts the conversion calculation of the loan, the creditor will not require additional payment security instruments in relation to the agreed ones, nor impose additional conditions on the consumer that would derogate their other rights.” Franak believes that Erste is doing just that, announcing the possibility of terminating the annex to the loan contract if the conversion law is repealed or ceases to be valid.
The Association of Credit Borrowers (KREDA) also warned on Wednesday, stating that Erste Bank secured itself with a proposal for an annex to the contract which states that, in the event that the constitutionality of the law is resolved in their favor, that annex will not produce legal effects.
Erste Bank, on the other hand, responded that they believe the draft annex to the loan contract, sent to loan users as an integral part of the documentation for the implementation of the conversion of loans in Swiss francs, is in accordance with applicable regulations. They emphasize that they deemed it necessary to inform loan users of the fact that they submitted a proposal for the assessment of the constitutionality of the legal amendments regarding loans in ‘Swiss francs’ and that the decision of the Constitutional Court cannot be prejudged nor can the possible consequences of that decision be predicted.
