mBank has reached over 16 thousand settlements with CHF borrowers

by   CIJ News iDesk III
2024-05-15   10:56
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The total number of settlements concluded by mBank with its franc customers has exceeded 16,000, the bank said. Last week, the bank reported that it stood at 15,168 at the end of March this year.

More than 16,000 agreements have already been signed by people paying off Swiss franc mortgages at mBank. Since the launch of the programme, more customers have opted for a settlement with the bank than litigation. During this time, mBank's portfolio of franc mortgages has decreased by 45%, the bank announced.

In the first three months of 2024, almost 1,900 borrowers chose to settle, the bank stressed.

Since the launch of the settlement programme at the end of 2022, the bank has concluded more settlements than it has received new lawsuits. At the beginning of this period, the bank had 45,000 franking credits in repayment. At the end of April 2024, this number had decreased to 25,000, the bank reported.

The starting point of mBank's settlement proposal is to convert the loan as if it had been repaid in zloty from the beginning. The offer is negotiable. For the majority of people, the settlement means a complete write-off of the debt. Clients thus get rid of the loan without having to pay a law firm and fight a years-long dispute in court. In court cases, final judgements have so far been made in only 5,000 cases, according to the bank.

"Settlement is better than litigation. Customers who sign an agreement with the bank can forget about the franking loan in a matter of days. Lawsuits take years. [...] Reducing the number of franking credits by almost half allows us to be optimistic about the future and focus on the bank's development," said CEO Cezary Stypułkowski.

Settlement proposals have already been received by all franc borrowers. mBank regularly renews its offer and encourages negotiation of its terms, the bank reported.

Source: mBank and ISBnews

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