Supreme Court: Users who accepted CHF loan conversion have no right to overpaid principal

Croatia's Supreme Court has issued a final ruling stating that borrowers who converted their Swiss franc (CHF) loans to euros are not entitled to a refund of overpaid principal amounts. The decision, made by a nine-to-four vote, clarifies the legal standing for a significant number of consumers who had taken out loans denominated in CHF.

While the court denied claims for the return of the principal based on null and void contract clauses, it did recognize borrowers' right to receive default interest. This interest applies to the overpaid amounts from the conclusion of the loan agreement until the conversion date, specifically September 30, 2015. The court specified that these default interest payments are due on all amounts paid above the initial exchange rate and interest rate, as stipulated in the loan contracts.

The ruling has drawn criticism from the "Franak" association, which advocates for borrowers. The association argues that the default interest awarded constitutes only about 20% of the total compensation they believe consumers are owed. Four judges on the Supreme Court panel issued dissenting opinions, which "Franak" hopes will be influential in future appeals to the Constitutional Court. The association also noted that the issue of legal costs remains unresolved, with current arrangements requiring each party to bear their own expenses, a situation they deem unsustainable.

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Tužitelju pripadaju od dana sklapanja Ugovora o kreditu pa do dana prestanka obveze izvršenom konverzijom kredita zatezne kamate na preplaćene iznose temeljem ništetnih i nepoštenih odredbi o promjenjivoj kamatnoj stopi i deviznoj klauzuli u CHF, što znači na sve one iznose koje je tužitelj plaćao više od početnog tečaja i od početne kamatne stope.