Introduction

The purpose of this chapter is to examine the legal position of the borrower under a loan agreement entered into with a bank. As Polish financial and capital markets develop, a growing amount of banking products have become available. This is particularly evident with respect to bank loans, which have become increasingly affordable.

Despite the fact that many banks are present on the market, the competition to secure a client base does not always guarantee that contracts equally protect the interests of the client and the bank. Apart from including abusive clauses and burdening the borrower with onerous duties, banks assume that the borrower is aware of the legal effects of creating security for the loan. However, in practice, the borrower does not comprehend the effect this has on his legal position. Moreover, this position entails legal effects not only for the borrower during his lifetime, but also for his heirs upon his death.

Poland's accession to the European Union must be viewed as having had a positive influence on the development of banking practice and consumer protection in the field of bank loans. Directives such as the Consumer Credit Directive, Door-Step Selling Directive, e-Commerce Directive, Distance Marketing Directive, and the Unfair Terms Directive are aimed at increasing the safety and transparency of transactions, with particular attention paid to the protection of consumers.