BNP Paribas wants to compensate customers of Swiss franc loans
Published: Wednesday, Jan 3rd 2024, 09:10
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Around 4,400 customers who took out Swiss franc mortgage loans with the major French bank BNP Paribas can hope to receive compensation. Following a court ruling in November, BNP Paribas has now agreed an "amicable solution" with consumer protection organizations.
BNP Paribas Personal Finance has committed to offering a solution to customers of the "Helvet Immo" product in the coming months, according to a press release issued by the French consumer protection organization CLCV (Consommation, Logement et Cadre de Vie) on Tuesday. According to an article published in the newspaper "Le Parisien" at the beginning of the year, the major French bank could make compensation payments totaling up to 600 million euros.
In 2008 and 2009, the lending subsidiary of BNP Paribas had granted loans in Swiss francs that were repayable in euros. While the Swiss franc interest rates were lower than the interest rates for euro loans, the charges for borrowers skyrocketed due to the massive strengthening of the Swiss currency after the 2008 financial crisis. In its ruling, the French courts came to the conclusion that the bank had concealed the high exchange rate risks of the product from customers in its offer.
In November 2023, a Paris Court of Appeal sentenced BNP Paribas Personal Finance to pay a fine of 187,500 euros and compensation payments to 2,500 customers amounting to around 130 million euros. It thus confirmed a ruling by the court of first instance from 2020. In November, the bank reserved the right to appeal to the Court of Cassation.
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