UOKiK: Polish lenders should apply linear method in refunds for early repaid consumer loans
Polish lenders should offer linear proportional refunds of fees tied to consumer loans in the case of early repayment of such loans, the President of the Office of Competition and Consumer Protection said.
"In the opinion of UOKiK's President lending institutions and banks should apply the linear method while calculating the refund - it is the most legible method for consumers, the simplest one, transparent and just," UOKiK said.
In September 2019, the Court of Justice of the European Union ruled that a lender should make a proportional refund of fees and charges tied to a consumer loan if a borrower repays such a loan early.
Some Polish lenders have been using the linear method, while others have been adjusting refunds against effective interest rates.