A Second "Franc-Style" Front: Banks Are Now Offering Settlements to Euro Mortgage Holders
Until recently, the topic of invalidated mortgage contracts in Poland was almost exclusively associated with Swiss franc loans. In July 2026, that is clearly changing - banks have started proactively offering settlements to people repaying euro-denominated mortgages. For hundreds of thousands of Poles who took out a mortgage in a currency other than the franc two decades ago, this is a signal to read carefully whatever pops up on their banking app screen before clicking "accept."
What exactly is happening
PKO Bank Polski has expanded its settlement and mediation programme, run through the Arbitration Court at the Polish Financial Supervision Authority (KNF) and previously associated almost exclusively with franc loans, to cover euro-denominated mortgages and home loans. Customers logging into the iPKO app started seeing a full-screen banner proposing to close their euro loan, together with a stated overpayment refund amount - the bank notes that this figure can still be increased during free mediation, from which the customer can withdraw at any time. Industry observers following the foreign-currency loan market expect other banks with large euro and dollar loan portfolios to launch similar programmes in the coming months, for a simple reason: the euro loan portfolio is now larger in value than the shrinking franc portfolio.
Why euro loans look so much like franc cases
The structure of euro or dollar-denominated mortgage contracts is nearly identical to that of franc contracts: conversions calculated using the bank's own internal exchange-rate tables, currency risk placed entirely on the consumer, and incomplete disclosure of that risk at the time of signing. Polish courts apply the exact same body of case law from the Court of Justice of the European Union and the Supreme Court that was previously built up in franc cases.
The scale is striking. According to mBank's data for the first quarter of 2026, of 252 final rulings concerning loans indexed to currencies other than the franc - mainly euro - 247 went against the bank. That is nearly 98 percent of cases lost by the institution. mBank itself has already set aside 474 million zloty in provisions for legal risk in this segment, while PKO Bank Polski had built reserves exceeding 1.5 billion zloty specifically for euro loan disputes by the end of the first quarter of 2026.
A bank settlement offer - a good deal, or a pre-emptive move?
A settlement offer that pops up on its own inside a banking app sounds tempting - no need to go to court, no years-long wait for a final ruling, and the bank itself proposes to refund part of the overpayment. Lawyers who handle foreign-currency loan cases warn about one mechanism, though: whoever signs a settlement first usually gets the least favourable terms. Knowing that they lose almost every case in court, banks calculate that a quick settlement is cheaper for them than a full contract invalidation ordered by a court - and invalidation usually means a significantly larger refund for the customer than a settlement, though it takes patience.
Before accepting an offer that appears in a banking-app banner, it is worth doing the following:
- Do not click "accept" straight away. Mediation is free and non-binding until the settlement is actually signed - you have time for a calm analysis.
- Get the terms reviewed by a lawyer independent of the bank. Only such a person can realistically compare what you could recover in court against what the settlement offers.
- Check your contract for currency-risk clauses. If it contains conversions based on the bank's own exchange-rate table without clearly defined rules, you are in a strong negotiating position.
- Do not rush. The trend is only picking up speed, and settlement terms may well become more favourable to customers over time, not less.
What this means for you
If you are repaying a euro or dollar loan
If a similar banner has already appeared in your banking app, treat it as a starting point for a conversation, not a ready-made decision. It is worth carefully reviewing your contract, checking the case law in similar disputes, and only then deciding whether to pursue a settlement or go to court.
If you are looking for a safe mortgage today
This whole situation is also a warning for the future: a foreign-currency loan carries exchange-rate risk that, as both the franc and euro cases show, can catch borrowers off guard even after many years of paying instalments. If you are planning to buy a home on credit, it is far safer to stick with a zloty-denominated mortgage and compare current mortgage offers in Polish currency instead of counting on a temporarily lower instalment on a foreign-currency loan.
If you are expecting a refund from a settlement or a court ruling
People who eventually receive an overpayment refund - whether through a settlement or a final court ruling - often face the question of what to do with a typically sizeable lump sum. Before deciding to overpay another loan or invest the money, it is worth parking it temporarily by comparing current term deposit offers for the time you need to think through your next steps, or using a flexible savings account if you would rather not lock the money in for a fixed term.
If you need cash for something else in the meantime
Court disputes and settlement processes can drag on for many months, and everyday expenses do not wait. If you need to fund a smaller, specific goal in the meantime, it is far safer to compare cash loan offers in zloty rather than reaching for another foreign-currency loan - that way you avoid repeating the very scenario that is now forcing banks to offer settlements.
What you should do
Extending the settlement programme to euro loans shows that Poland's foreign-currency loan problem is not ending along with franc cases - it is simply changing currency. If you have such a loan, do not make a decision under the influence of a banking-app banner: check the contract, consult an independent lawyer, and only then decide whether the settlement genuinely pays off. And if you are still planning to finance a home purchase, treat this story as one more argument for sticking with the zloty and thoroughly comparing the offers available before you sign anything.