Poland’s largest bank, PKO BP (PKO.WA), has been hit with a fine exceeding 79 million zlotys, equivalent to $22 million AUD, for incorporating prohibited clauses in its consumer loan agreements. The penalty was issued by Poland’s competition and consumer protection office, UOKiK, which identified the problematic terms. PKO BP is Poland’s largest lender, providing a range of financial services to individuals and businesses. It plays a significant role in the Polish banking sector.
The offending clauses allowed PKO BP to unilaterally adjust interest rates on renewable credit limits without transparently outlining the conditions that would trigger such changes. UOKiK stated that the loan agreements lacked specific criteria the bank would consider when altering rates, granting it the latitude for arbitrary decisions. These prohibited clauses have been in effect since December 2018, impacting a portion of the bank’s loan portfolio.
According to UOKiK President Tomasz Chróstny, clauses pertaining to interest rate adjustments must be clearly defined to ensure consumers understand when and how their credit costs may fluctuate. The regulator has mandated that PKO BP notify all affected customers about the ruling and disseminate a statement on its website and social media platforms. The bank retains the right to appeal the decision.
PKO BP has acknowledged the ruling and stated it will determine its next course of action, including the possibility of an appeal, following a thorough analysis. The bank also noted that the case involves approximately 23,000 loan agreements, representing less than three per cent of its total loan portfolio.
