Helvet Immo: BNP Paribas has to pay € 127 million to borrowers

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Helvet Immo: BNP Paribas has to pay € 127 million to borrowers


Sent on September 26, 2020, 1:07 pmUpdated September 27, 2020, 4:53 pm

Compensation must be paid, and without waiting for new legal developments. After a decision by the Paris Court of Appeal on Friday, BNP Paribas Personal Finance (PF) will have to pay ” approximately 127 million euros to borrowers in the Helvet Immo loan case, in which she was sentenced in the first instance, last February.

The court then ordered the provisional execution of its decision with the ” payment of damages “. The credit institution – known in France under the brand name Cetelem – had challenged the merits and, in a separate proceeding, had attempted to provisionally challenge this payment.

It was on this last step that the plant was fired. ” We will respect this decision, which is in no way indicative “Philippe Métais, lawyer of BNP Personal Finance, explains to“ Echos ”on the outcome of the case, confirming the information of the“ Parisian ”. The lawyer indicated that he was considering an appeal against this decision.

“Misleading business practice”

Last February BNP Paribas Personal Finance was found guilty of ” misleading business practice and concealment of this offense. She had been ordered to pay 187,500 euros (the maximum fine) in addition to compensation for damages for hiding the risks induced by these loans granted in Swiss francs, but repayable in euros.

Borrowers, who had not anticipated the currency risk, have seen their ratings rise since 2011, when the euro weakened strongly against the Swiss franc. Many still owe more capital than the amount borrowed even if they have been paying for more than ten years.

In total, these loans, distributed between 2008 and 2009 to more than 4,600 borrowers, represent the equivalent of € 800 million lent. 2,300 borrowers had filed a complaint.

The attorney of about 1,300 civil plaintiffs out of the 2,300 filed at the trial, Charles Constantin-Vallet, said on Friday evening that his clients ” accept the decision [de rendre le versement exécutoire]very strict “, Reports AFP, the lawyer he sees there” stop BNP Paribas PF’s strategy of judicial exhaustion “.

On the merits, the credit institution still disputes the accusation and filed an appeal in early March. The date of the hearing has not yet been set. ” We always deny “, The first instance decision which is” unacceptable “, Resumes Philippe Métais.

E.Le. with AFP

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