Contracts and consumer rights — glossary

A document changing previously agreed provisions of the contract, e.g. schedule, interest rate or settlement method.

The scope of changes should result from the content of the annex. Signing it does not automatically mean entering into a completely new contract or changing all previous conditions.

In practice: Read the changed points, costs and date of entry into force of the changes.

Source: Financial Ombudsman - the importance of loan annexes.

Transfer of receivables to another entity, in accordance with the regulations and the nature of the obligation. After the assignment, the new creditor may be entitled to demand payment.

In practice: Check the notice and documents confirming the change before sending money to another account. The mere transfer of debt does not create any new charges. Keep receipts for previous deposits and verify your balance.

An obligation whose existence, amount, basis or enforceability is disputed. The dispute itself does not automatically mean that the debt does not exist or that the creditor's claim is correct.

In practice: Determine the specific reason for the objections and secure the documents. A complaint or letter to a debt collection company does not replace the required response to court correspondence. Before acknowledging the debt or entering into a settlement, check the implications for your charges and legal situation.

Compulsory enforcement of benefits by an authorized body on the basis of an appropriate enforcement title. It may apply to specific assets and income, with statutory limitations.

In practice: A bailiff and a private debt collection company have different powers. Check the case designation, creditor and documents. The method of questioning the activity or the receivable itself depends on the problem, so a quick analysis of the correspondence is important.

A special procedure for pursuing specific monetary claims before e-court. It allows you to carry out specified activities using an electronic system, in accordance with the rules of conduct.

In practice: An e-court order requires the same attention as any other court document. Check for authenticity, case designation and reaction instructions. The message from the debt collection company informing about the planned lawsuit has not yet been issued.

A document provided before concluding a contract, presenting the most important terms of a consumer loan. It allows you to compare the amount, duration, costs, repayment method and customer rights.

In practice: Read it together with the draft contract, not only with the advertisement. Take note of the total amount payable, any additional services required, and the effects of delay. Do not confuse the information form with the loan application itself.

Prohibited contractual provision in a relationship with a consumer, assessed according to the legal requirements. Not every unfavorable or expensive clause is automatically abusive.

In practice: It is important, among others, method of agreement and impact on the rights of the parties. It is worth analyzing a questionable provision together with the entire contract. Independently recognizing a provision as defective is not a sufficient basis to ignore all payments.

Confirmation that a given title may be exercised by way of enforcement under the terms specified by law. In typical cases, it is an element leading from the enforcement title to the writ of execution.

In practice: It is not the same as the decision itself about the validity of the request. Check what document and scope of responsibility it applies to. The available remedies and time limits depend on the specific situation; do not replace them with a regular response to the debt collection company's message.

A category of financing provided to a consumer by an entrepreneur, including, among others: certain loans and credits. The Act provides for a basic limit of PLN 255,550, as well as specific exceptions to this limit.

In practice: The amount limit itself does not resolve all cases. The type of contract, its purpose and statutory exclusions are important. This financing includes, among others: information obligations, early repayment rules and the right of withdrawal under the terms of the Act.

A portion of funds or income protected against specific enforcement actions under statutory provisions. The scope of protection depends on, among others: depending on the type of receipt, account and amount due.

In practice: Protection of funds in the account is not identical to limiting deductions from wages. Other rules may apply to alimony and specially protected benefits. Don't use one amount from the online example for every case and every year.

Assets subject to acquisition and settlement in bankruptcy proceedings in accordance with the regulations. The scope of the estate is determined taking into account statutory rules and exclusions, and not at the discretion of the debtor.

In practice: Not every influence or item is accounted for identically. Ownership, timing of acquisition and protection of specific benefits may be important. Do not hide or dispose of assets to harm creditors; such actions may result in serious legal consequences.

A court decision issued in a procedure provided for by law, ordering performance. The attached instruction specifies the method and deadline for any appeal.

In practice: This is a different document than a regular request from a debt collection company. Check authenticity and delivery date. Don't ignore the letter even if you are disputing the debt; failure to respond appropriately may significantly worsen the procedural situation.

Interest determined according to the rules set out in the Civil Code. A distinction must be made between capital interest, late payment interest and the corresponding statutory maximum limits.

In practice: Their amount may change with the NBP reference rate. One rate does not apply to all situations. Before calculating the amount due, determine the type of interest, the accrual period and the legal or contractual basis.

The right to withdraw from the contract in the prescribed manner. In the case of a consumer loan, the consumer may, as a rule, withdraw without giving a reason within 14 days, taking into account the statutory rules for calculating the deadline.

In practice: You must submit a declaration and settle the funds received. Generally, the capital with interest due for actual use is returned within 30 days of the declaration. Check the recipient's address and keep proof of shipment.

Court proceedings provided for specific cases of protection against enforcement. It may concern, for example, depriving an enforcement title of enforceability or protecting the rights of a third party to the seized item, depending on the basis.

In practice: It does not replace every appeal and does not arbitrarily reopen a closed case. The proper demand, allegations and deadlines must be established. The mere filing of a lawsuit does not mean that all enforcement activities will be automatically stopped.

The expiry of a statutory deadline with which the law attaches certain consequences for pursuing a claim. The beginning and length of the period depend on the nature of the debt and the circumstances of the case.

In practice: The statute of limitations does not mean simply deleting an entry or any amount in the database. The parties' actions and proceedings may be relevant. Don't ignore court correspondence just because the debt is old; response times may be short.

Change of the person responsible for the obligation, leading to the entry of a new debtor in place of the current one, provided that the required conditions are met. It requires taking into account appropriate consents and the form of action.

In practice: A private arrangement that someone will pay the installments does not necessarily release the existing debtor from the creditor. Check institutional acceptance and security implications. Do not confuse debt assumption with assignment of receivables, which involves a change of creditor.

An event specified in the regulations that interrupts the current limitation period for a claim. After interruption, the deadline generally runs again, taking into account specific rules relating to a given event.

In practice: The following may be important, among others: specific actions before the competent authority or recognition of a claim. A simple request for payment or sale of receivables is not automatic. The assessment requires dates, documents and regulations specific to the case.

Reporting any objections to a product or service addressed to a financial market entity. It may concern, for example, the calculation of costs, settlement of payment or irregularities in the contract.

In practice: Describe the problem, expected solution and attach copies of confirmations. Keep proof of your complaint. The response time and further assistance path depend on the type of service and regulations; do not assume identical rules for all cases.

The consumer's right provided for by law related to specific breaches of obligations in the context of a consumer loan. If the statutory conditions are met, it may lead to settlement without interest and other costs due to the lender.

In practice: It doesn't automatically work for every bug or every deal. It requires analysis of the basis, deadlines and proper declaration. Advertising of a company pursuing claims does not confirm the validity of the case; the terms of the engagement also require assessment.

A measure to control specific actions or omissions of a bailiff in cases provided for by law. It is not a general complaint about the loan agreement or a universal way to dispute the debt itself.

In practice: The subject of the complaint, the deadline, formal requirements and the proper method of filing are important. A complaint does not automatically stay enforcement. If you dispute the basis of the obligation, another remedy may be needed; match it to the real problem.

The principle according to which the creditor may demand all or part of the benefit from all obligors jointly or from selected of them, on the basis of an appropriate contract or act.

In practice: The internal division of installments between debtors does not have to limit the creditor's rights. Payment may lead to settlements between jointly responsible persons. Before taking out a joint loan, check the actual scope of responsibility, not just the agreed share of monthly payments.

An appeal provided for certain payment orders, allowing the defendant to challenge the decision. The appropriate procedure, scope and effects depend on the proceedings and the content of the documents served.

In practice: Read the instruction, check the delivery date and do not send the letter only to the creditor. Different types of orders may require different remedies. Keep proof of submitting the letter and take care of the requirements needed in your case.

A person performing a legally specified function in bankruptcy proceedings, dealing with, among others: assets included in the bankruptcy estate and activities related to the settlement of creditors. It operates within the framework of statutory powers and supervision.

In practice: A trustee is not the same as a bailiff or a private debt relief advisor. The bankrupt has obligations to cooperate and provide information. Before you hand over documents or money, check the case designation, the person's identity and the appropriate contact channel.

A document constituting the basis for enforcement in cases specified by law. As a rule, it is an enforcement title with an enforcement clause, unless the regulations provide for a different solution.

In practice: An ordinary contract, reminder or private request for payment does not become an enforceable title by its name alone. When carrying out enforcement correspondence, check the identification of the document, creditor and case. The method of contesting the debt depends on the basis and stage of the proceedings.

An agreement between the parties concluded before a court, specifying how to end a dispute or settle an obligation. Its procedural effects and possibility of execution result from the content and regulations.

In practice: Check the balance, due dates, interest, costs and consequences of failure to pay the installment. Don't treat it as a non-binding declaration of good will. The conditions should be realistic and the consequences of waivers and other concessions should be understood before concluding the agreement.

A legally regulated method of agreeing the terms of repayment of liabilities with creditors in proceedings intended for specific natural persons. It is separate from regular private settlement and bankruptcy liquidation.

In practice: Availability and success depend on statutory conditions, the debtor's situation and the acceptance required in the proceedings. The arrangement may help to sort out the debt, but it does not guarantee the preservation of every asset. You need to compare the costs, the feasibility of the proposal and the consequences of failure to implement it.

A decision regarding the release of the bankrupt from specific obligations under the principles of the Bankruptcy Law. Its scope and conditions depend on the proceedings, the type of debt and the situation of the indebted person.

In practice: It should not be equated with the declaration of bankruptcy itself. Not all receivables are subject to write-off, and the effects on guarantors and others require separate assessment. Read the content of the judgment instead of relying on the general slogan "all debts disappear".

Determining the rights and obligations of the parties regarding the transfer and repayment of the loan. In the case of cash financing, the documents specify, among others: amount, costs, method of payment and repayment date.

In practice: The contract can also be concluded electronically if the appropriate requirements are met. Maintain the content of accepted documents and confirmations. Compare the payout amount to the debt amount, not just the advertised installment amount.

Court proceedings aimed at regulating the situation of an insolvent natural person in the manner provided for consumers. It may include liquidation of assets, settlement of creditors and debt relief under the conditions specified in law.

In practice: Just declaring bankruptcy does not mean the immediate erasure of all debts. The debtor's obligations, his situation and the types of obligations are important. Before submitting the application, collect documents and assess the consequences for your property, income and persons jointly responsible for the debt.

The debtor's behavior relating to the existence of a specific claim to which the law may assign significant effects. It may take various forms and requires an assessment of specific content and circumstances.

In practice: It is not limited to just a document titled "recognition of debt". Settlement arrangements, statements or specific actions may be relevant. Before signing an agreement regarding a disputed or old debt, check the balance and possible consequences, including the statute of limitations.

A special debt relief mechanism in bankruptcy, which assesses the temporary inability to make repayments. This is not an unconditional and immediate termination of all the debtor's obligations.

In practice: Within the period provided for by law, the financial situation and the fulfillment of information obligations are important. Improving your ability to repay may lead to a further court decision. Check the content of the provision, property restrictions and consequences of withholding data.

Settlement of all or part of the loan before the contractual date. In a consumer loan, early repayment is associated with a reduction in the total cost under the terms specified in the Act.

In practice: Ask for a settlement of principal, interest and expenses, rather than treating the quoted balance as unconditionally final. The rules for possible commission depend on the type of contract. A mortgage loan has separate rules regarding compensation.

The creditor's rights to demand specific performance from the debtor. In the case of a loan, they may concern the return of capital, payment of interest due or other properly determined costs.

In practice: The receivable may be transferred to another entity if the regulations and the nature of the obligation allow it. A change of creditor does not determine the validity of any amount claimed. Check your documents, balance and notification effectiveness.

Letter initiating bankruptcy proceedings. It should present information required by law, including the circumstances of insolvency, data on assets and liabilities, in a manner appropriate to the case.

In practice: The application is not a court ruling itself or an automatic consent to debt relief. Provide complete and true information and keep copies of attachments. Please refer to the current official instructions for the correct procedure for the method of submission, required forms and fees.

A statement intended to terminate the contract on the terms provided for by law and documents. It may lead to an obligation to repay the remaining debt within a specified period.

In practice: Not every request for payment is a notice of termination. Check the basis, required procedure, service and notice period. In case of difficulties with repayment, react early and keep correspondence regarding possible restructuring.

Subjecting remuneration to enforcement, as a result of which a specific part of the payment is transferred in accordance with the rules of procedure. The employer shall take into account appropriate deduction limitations and garnishment obligations.

In practice: It does not automatically mean the loss of your entire salary. Protection depends on the basis of employment, the type of receivables and other circumstances. The seizure of wages and the subsequent seizure of an account require separate examination, especially when the issue of double restriction of access to influence arises.

The period during which the limitation period does not start or does not continue to run for the reason specified in the regulations. It is a different mechanism than terminating the deadline.

In practice: Once the reason for suspension ceases to exist, the rules for further counting must be taken into account, rather than automatically starting the entire period from the beginning. The effect of a given procedure may also depend on the date of change in regulations. Analyze the full chronology of the parties' obligations and actions.

A situation where enforcement by different competent authorities covers the same asset or right. The regulations specify the rules for further conduct and cooperation, depending on the type of fugitive.

In practice: Several debts do not mean that each execution is concurrent. Check what has been seized and by whom. The transaction itself does not clear the receivable or allow you to freely dispose of the seized asset. Clarify billing to avoid misunderstandings about deposits.

Categories of receivables whose write-off in specific proceedings is excluded by law. In consumer bankruptcy, statutory exceptions include, among others: maintenance obligations and specified amounts related to liability for specific acts.

In practice: Do not evaluate the possibility of debt relief solely by the total amount of debt. Determine the source of each receivable and its qualification. The type of judgment, the circumstances of the obligation and the provisions applicable to the case may determine the further obligation to pay.