Mr Jacek Protasiewicz submitted an interpelling which detailed the rules for granting credit holidays. The question asked is: Does the Ministry of Finance envisage an amendment to that Act, given that the conclusion of an agreement with another bank and its signature after 1 July 2022 (in place of a contract signed before 1 July 2022) for purchase one and the same property for residential purposes is de facto and should be treated as one mortgage credit taken to meet personal housing needs, and thus - eligible to benefit from “credit holidays”?
The Undersecretary of State at the Ministry of Finance Piotr Patkowski replied to the inquiry:
"Act dated 7 July 2022 on crowdfunding for business ventures and helping borrowers (Journal of Laws of 2022, item 1488), which entered into force on the day 29 July this year, a credit holiday institution has been introduced. By Sound Article 73(1-3) At the consumer's request, the creditor suspends repayment of a mortgage loan granted in Polish currency, excluding loans indexed or denominated in a currency other than the Polish currency. Credit holidays can be used if the mortgage agreement was concluded before 1 July 2022 Thus, only the repayment of a mortgage loan granted under a mortgage agreement which may be considered as a mortgage agreement within the meaning of Article 3 Act dated 23 March 2017 on mortgage credit and supervision of mortgage intermediaries and agents. Suspension of repayment of the loan shall be granted to the consumer only in relation to one contract concluded to meet their own housing needs.
According to the UKNF position, it should be noted that according to ‘Article 506(1) a civil code, if the debtor undertakes, with the consent of the creditor, to fulfil another benefit or even the same benefit, but on another legal basis, the existing obligation expires.
In the case described in the interview we are therefore dealing with a new credit agreement. This also applies fully to the so-called re-financing loan received by the borrower in another bank. There are certainly more facts, similar - in the subjective reception of borrowers - to the described under Article 73 Act.
For example, in a similar situation as borrowers benefiting from debt refinancing in another or the same bank, there are also consumers who have applied for credit in the period immediately prior to the adoption and entry into force of the rules and who have entered into a contract with the bank after a specified date under Article 74 Act.
Nor does the provision apply to such contracts Article 73 that law’.
I would also like to draw attention to the position of the UOKiK that "the purpose of the legislation is to help borrowers overcome the temporary difficulties in regulating the liabilities arising from the repayment of loans for housing purposes.
In terms of interest rate increases, the burden on the household budget of the borrower to repay a variable rate housing loan. At this point it should be recalled that there are differences in the scale of the problem depending, among others, on the year the loan was drawn.
Available data indicate that the burden resulting from difficulties in the use of loans may be greatest for borrowers who have taken on average the most valuable loans over the period of historically lowest interest rates i.e. in years 2020-2021.
At the same time, it should be stressed that, in the light of the provisions of the Act, the use of a re-financing credit alone does not mean an automatic exemption from the possibility of taking credit holidays. The creditor should not automatically reject applications for credit holidays relating to refinancing loans.
It should assess such a request each time in the light of all statutory conditions, including whether it was concluded by the date at the latest 30 June 2022 The problem which the honourable Member describes may concern only those who have refinanced the loan after 30 June 2022 At this point it should be stressed that Act dated 7 July 2022 on crowdfunding for business ventures and helping borrowers under Article 74 indicates that Article 73 on credit holidays shall apply to contracts concluded before 1 July 2022, of which also contracts concluded before the date of entry into force of the Amended Act under Article 69, if the maturity of the credit period specified in those contracts is at an end 6 months after that date.
So for credit agreements concluded after the date 30 June creditors have no statutory obligation to provide credit holidays.’
In the context of the parliamentary interpellation, I would also point out that the Financial Ombudsman is conducting market monitoring activities.
As indicated in the Financial Ombudsman’s position, “as part of the hotline and the e-mail box..., The Financial Ombudsman receives signals from customers regarding possible difficulties in obtaining credit holidays.
Some questions addressed by customers to the Financial Ombudsman also concern the issue described in the submitted parliamentary interpelling (...).
It should also be noted that the Financial Ombudsman does not currently have sufficient data to fully assess the practice of banks in these cases, as any requests to the Financial Ombudsman to refuse credit holidays in respect of a refinancing loan will likely be received by the Office of the Financial Ombudsman only after the customer has exhausted the complaint procedure in a given bank.’