Commercial Court judge Radovan Dobronic on Thursday urged eight Croatian banks to try and reach a settlement with the Potrosac (Consumer) civil society organisation after losing a lawsuit over loans pegged to the Swiss franc, saying that if the court ruling became final it would lead to further lawsuits that might deal a heavy blow to the banks.
"You should be reasonable and try to reach a compromise with the plaintiff," Judge Dobronic said, adding that such a large number of lawsuits could exhaust any bank.
The banks had earlier rejected the call from the NGO for conciliation, and the judge told them they did not comprehend the seriousness of the Consumer Protection Act.
Explaining the court judgment, Dobronic said that the banks should not have offered citizens loans tied to the Swiss franc at a variable interest rate and a variable loan principal.
"Such a combination of an unlimited variable interest rate and principle, at a time of a fluctuating exchange rate and for such a long period, is completely unacceptable," the judge said, stressing that the banks had violated the consumers' rights because they had not fully informed them of all parameters necessary for making a proper decision.
The banks were ordered not to behave like that in the future and to cover the cost of litigation in excess of 440,000 kuna (59,000 euros).
The ruling, which is subject to appeal, gave the banks 60 days from the day of the ruling becoming final, to offer their clients a change of the contract and define the loan principal in kuna with a fixed interest rate as at the date the contract was signed. However, the citizens will be able to exercise their claims towards the banks only after initiating and winning their private lawsuits.
