CJEU judgment C-396/24 – revolution in CHF loan settlements

On 19 June 2025 the Court of Justice of the European Union (CJEU) issued a landmark judgment in case C-396/24, concerning the settlement of parties after a credit agreement was declared invalid due to abusive clauses. The judgment, in response to questions referred by the Regional Court in Krakow, is of enormous significance for Polish court practice.

The CJEU unambiguously rejected the two-condiction theory previously used in Poland as the basis for settlements. The ruling clearly indicates that settlement should be based on the balance principle, taking into account only the difference between the total amount of repayments made by the consumer and the loan principal. This means simplifying the procedure and reducing costs for both parties.

Simplified settlement procedure: the settlement comes down to comparing the amount paid by the consumer and the principal amount. The surplus is returned to the party that paid it. There is no longer a need to pursue claims separately by each party.

The judgment also largely closes the discussion on the statute of limitations of bank claims for the return of capital. The CJEU did not take a clear position on granting the rigour of immediate enforceability to a judgment awarding the principal, but emphasised that such action would be contrary to EU law unless national law provides adequate consumer protection.

The CJEU judgment marks a revolution in settlements after the invalidity of credit agreements. We expect significant simplification of procedures, reduction of costs and formalities, and faster, fairer resolution of disputes. It will also make it easier to conclude settlements between banks and consumers, which are the most beneficial solution for both parties.