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Franak association files complaint against seven banks

Author: rmli
ZAGREB, July 13 (Hina) - The Franak association, which brings together holders of loans pegged to the Swiss franc, has filed a complaint with the Croatian Competition Agency (AZTN) and the European Commission Directorate-General for Competition against seven banks which have been found guilty in the case of a class action filed by the Consumer association, on the suspicion that they agreed loan interest rates, Franak said in a statement.

"We have filed the complaint because banks have been coordinating their activities all along, which was best seen during the negotiations at the Finance Ministry, as well as in statements by the Croatian Banking Association (HUB), which always relays the general positions of all seven banks, from which it can be concluded that their operations are, to say the least, a result of an agreement," Franak said.

It underlined that representatives of several biggest banks in Croatia, which account for the largest share of the banking market in the country, had conducted talks with Franak "as if they presented positions of all banks in the negotiations."

"How is it possible for the seven biggest banks operating in Croatia to act as a single entity?" Franak asks and adds that in its media statements "HUB frequently threatens legal security by saying that there are no overpaid amounts of interest which banks unilaterally increased on several occasions."

The only class action launched in the country so far over consumer protection was launched against eight commercial banks for violation of collective interests and consumer rights when agreements on loans indexed in the Swiss franc were signed. The High Commercial Court made a final ruling in the case on 13 June 2014.

The court at the time only partially accepted the complaint against seven banks in the part that refers to the unilateral setting of interest rates. The ruling is currently under review by the Supreme Court.

The banks against which the court ruled are Zagrebacka Banka, Privredna Banka Zagreb, Erste&Steiermaerkische Bank, Raiffeisenbank Austria, Hypo Alpe-Adria-Bank, OTP Bank Croatia and Societe Generale-Splitska Banka.

(Hina) rml

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