Abolition of the WIBOR Rate
WIBOR is an index that, over many recent years, has been and continues to be used by banks to set the interest rates for both consumer and mortgage loans.
The problem is that credit agreements, whose interest rates are based on the WIBOR index, are burdened with serious deficiencies and legal flaws. Without delving into a detailed legal analysis, the following arguments can be listed in this regard:
- lack of a full and reliable definition of the WIBOR rate
- lack of information about the publisher and administrator of the WIBOR rate
- lack of information about the method, formula, and rules according to which WIBOR is calculated
- lack of information about the risks associated with the use of the WIBOR rate for the borrower
- lack of historical data on how the WIBOR rate has evolved in the past
- lack of appendices – documents to the credit agreement that contain detailed information on how the WIBOR rate is calculated
In addition to the above, a valid argument raised in the legal community is that the WIBOR rate is non-transparent and allows banks (thus a party to the credit agreement) to shape its amount. In short, it should be noted here that WIBOR is calculated based on declarations regarding possible transactions between banks.
In the case of many credit agreements, there is therefore the possibility of successfully challenging and invalidating the WIBOR rate. Consequently, the borrower may be entitled to recover all paid interest installments that include the WIBOR rate. Considering that mortgage agreements are long-term, the savings from this can be very substantial.
Lexitor, as an entity specialized in pursuing claims against banks, guarantees a free and reliable analysis of the credit agreement regarding the possibility of recovering unduly charged interest installments that include the WIBOR rate. Subsequently, Lexitor provides comprehensive legal and procedural support until the successful recovery of all dues from this title. We invite you to send your credit agreement today for a free analysis.
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