Consumer loan claims remain major risk for Polish banks, Bank Millennium CEO says

By Reuters News13:05 (UTC), 27 October 2026 Updated

GDANSK, Poland, Oct 27 (Reuters) - The CEO of Bank Millennium MILP.WA said on Tuesday that lawsuits over the free credit sanction, a penalty that can strip lenders of interest and fees on consumer loans, remained a major risk for Poland's banking sector, although he added Millennium's provisions were adequate for now.

Under the penalty, imposed if a lender is found to have broken disclosure rules when giving out the loan, borrowers with consumer loans of up to 255,550 zlotys ($64,758) can repay only the amount borrowed.

Millennium set aside 161.5 million zlotys for consumer loan disputes and complaints in the first nine months of 2026 and said it could adjust these provisions further
It faced 3,157 pending lawsuits worth 87.6 million zlotys as of end-September and had won 502 of the 605 cases that reached a final ruling
Domestic rival Alior Bank ALRR.WA also said its provisions appeared sufficient for the current inflow of cases and court rulings
Alior's provisions for such lawsuits, including claims it expects in the future, stood at 184.1 million zlotys at end-September, up 77% from the end of 2025
Alior faced 6,140 pending cases worth 288 million zlotys, up 40% in number since end-2025

($1 = 3.9462 zlotys)