Reform of the free credit sanctions. Experts divided in assessment

The Ministry of Justice in Poland has proposed a new consumer credit law that aims to limit the circumstances under which banks can be required to provide free credit. The current system imposes strict penalties for minor violations, but the ministry seeks to create a more nuanced approach that aligns penalties with the severity of the violation. This change is partly driven by a new EU directive. Stakeholders have mixed opinions, with some supporting the need for clearer regulations while others express concerns about the effectiveness of regulatory bodies like UOKiK and KNF in protecting consumer rights. Critics argue that limiting penalties could weaken consumer protection, while proponents believe it will lead to a more effective sanctioning system.