Free-credit sanction (SKD)
The free-credit sanction is a remedy under Article 45 of the Polish Consumer Credit Act. When a consumer credit agreement contains specific errors, the borrower — after filing a written declaration — repays only the principal, with no interest or other credit costs. Interest and costs already paid can be recovered.
When a consumer credit agreement contains errors, the borrower can repay the credit without interest and non-interest costs — and recover what was already paid. We explain when the sanction applies and how to claim it.
What is the free-credit sanction?
The free-credit sanction (SKD) is a remedy under Article 45 of the Polish Consumer Credit Act. When a consumer credit agreement contains specific errors, the borrower — after filing a written declaration — repays only the principal, with no interest or other credit costs. Interest and costs already paid can be recovered.
In short: with a defective agreement you return only the borrowed principal — interest and the commission are forfeited by the lender.
When the sanction applies
A range of defects in a consumer credit agreement give the right to the SKD. The most common are:
- Missing or incorrectly calculated APR in the agreement
- Incorrect total amount of credit or total amount payable
- No rules and conditions for changing the interest rate
- Omission of some costs when calculating the maximum interest
- No information on the right of withdrawal or early repayment
- Charging costs on financed fees (interest on the commission)
How much you can recover
A quick idea of the potential refund with an effective SKD.
With an effective sanction you repay only the borrowed principal. Everything you have already paid on top of it — interest, commission and other credit costs — is what you can recover.
Example: on a 30,000 zł loan on which you have already paid 6,500 zł in interest and costs, an effective sanction means repaying only the 30,000 zł principal and recovering roughly 6,500 zł.
This is an informational estimate, not legal advice. The actual refund depends on the wording of the specific agreement and its assessment — which is carried out by a lawyer or law firm.
Note: the free-credit sanction is different from a promotional 0% loan for new customers — there the free credit is an offer, here it is a consequence of errors in the agreement.
Repaying several loans at once?
Before you check your agreement for a sanction, learn how credit costs work. In our knowledge base we explain APR, interest and debt consolidation.
Źródła i podstawa prawna
- 1. Act of 12 May 2011 on consumer credit — Article 45 (free-credit sanction) — ISAP — Internet System of Legal Acts (Poland)
- 2. Case law of the common courts and the CJEU on free-credit-sanction cases — Court of Justice of the European Union
- 3. UOKiK materials on consumer credit and lenders’ information obligations — Office of Competition and Consumer Protection (UOKiK)
Stan prawny i dane liczbowe zweryfikowane przez redakcję kreddo.pl. Jeśli zauważyłeś nieaktualne źródło — daj nam znać.
How to claim the sanction step by step
A typical course of a free-credit-sanction case.
- 1
Check the agreement
Gather the consumer credit agreement, the repayment schedule and proof of payments.
- 2
Order a legal review
A lawyer or law firm assesses whether the agreement contains errors that justify the sanction.
- 3
File the declaration
A written declaration of using the free-credit sanction is sent to the lender.
- 4
Settle the refund
You repay only the principal, and overpaid interest and costs are refunded — in a dispute, through the courts.
See also
Frequently Asked Questions
Who does the free-credit sanction apply to?
Consumers who entered into a consumer credit agreement (e.g. a cash loan, a loan, an instalment credit) that contains errors specified in the act. It does not apply to business loans.
How much time do I have to use the sanction?
The declaration can be filed within one year of performing the agreement. It is worth confirming the deadline and how it is counted with a lawyer for your specific agreement.
Do I need a lawyer?
Assessing the agreement requires legal knowledge, and lenders usually contest the claim. In practice, cases are handled by law firms, often on a success-fee basis.
What exactly do I recover?
With an effective sanction you repay only the principal. Interest, commissions and other credit costs are forfeited by the lender, and any already paid are refunded.
