The Polish competition authority, UOKiK, has levied fines totaling nearly 119 million PLN on two banks, Pekao and Pekao Bank Hipoteczny, for failing to comply with regulations regarding credit holidays. These banks shortened the suspension period for mortgage repayments while disproportionately extending the repayment term, leading to increased costs for consumers.

Since August 2022, consumers have been able to take advantage of credit holidays, allowing them to suspend up to 12 mortgage payments due to rising interest rates. UOKiK has been monitoring compliance with these regulations and found that both banks employed a non-compliant model for processing credit holiday requests.

Specifically, when consumers applied for credit holidays at the end of a quarter, the banks only granted suspension from the application date to the end of the month, rather than for the full month. Additionally, they automatically extended the loan term by a full month, regardless of the actual suspension period, which increased the total cost of the loan due to accrued interest.

UOKiK's President, Tomasz Chróstny, emphasized that these practices undermined the intended support for borrowers during high inflation and rising loan servicing costs. The banks are required to inform all affected consumers about the violations.

The fines imposed are 117,801,000 PLN for Bank Polska Kasa Opieki SA and 1,183,304 PLN for Pekao Bank Hipoteczny SA. Both banks have the right to appeal the decisions in the Court of Competition and Consumer Protection.