The expertise was commissioned by Bank Millenium SA, one of Poland’s banks. The expertise was not directly connected to any ongoing or finally completed proceedings related to the insurance clause in mortgage agreements requiring a small deposit. The expertise has a public character, it is available on the CARS website (www.cars.wz.uw.edu.pl). Thus, it can be used by other banks and clients lending mortgage loans indexed to foreign currency. The main goal of the expertise was to address the question whether the typical insurance clause contained in mortgages that require only a small deposit (a low ‘down payment’) has an economic and regulatory justification or whether it could be considered a potentially illegal clause in the light of Article 3851 of the Polish Civil Code – a so-called abusive clause.
Legal and economic analysis of the insurance clause in mortgage agreements requiring a small deposit
