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Bonds and policy-investments

The development of market economy, as well as constant technological and IT progres, contribute to the creation and implementation of numerous new financial instruments in the Polish market. Very often they are offered to consumers on the basis of financial service contracts which are difficult to read and to understand. Although the financial supervision of financial authorities and institutions is becoming more and more effective, we strongly recommend to consult a lawyer or financial advisor before concluding such an agreement. Saving is a very positive habit of consumers, but we should always make sure that this saving is also safe.

One of the most frequently offered financial services on the Polish market are policy-investments and bonds.

Policy-investments are simply term insurance policies with an insurance capital fund. Policy-investments were promoted by various financial intermediaries, but also directly by insurance companies as a safe product. In particular, they were important offers of the following entities: AEGON, ALLIANZ, AVIVA, AXA, COMPENSA, EUROPA, HDI GERLING, ING, GENERALI (OMNIPROFIT), NORDEA, OPEN LIFE, SKANDIA UNIQA, PZU, CONCORDIA, WBK.

In fact, policy-investments were burdened with significant investment risk. After the conclusion of the contract, the customer paid the initial amount and undertook to make monthly payments of the amount specified in the contract. Some of the funds paid by the customer were used to pay for the insurance, and the remaining part went to the investment market. It was the latter part of the paid policy that was to bring profits, mainly from stock market investments.

Regardless of the risk for the consumers of such investments, the policies contained numerous abusive provisions. For example, the lack of several months’ payments within a specified period of time could have been the basis for termination of a policy contract, which resulted in charging a liquidation fee in the amount of up to 100% of the capital paid by the consumer until that moment. In the same situation there were consumers who wanted to terminate the contract before the deadline, because then, in the light of the provisions of the policy-investments contract, they were forced to agree to the so-called liquidation fee in the amount of up to 100% of the capital paid up to that point. As a result, these entities in both cases were enriched at the expense of consumers in violation of the principles of social coexistence, good insurance practices and even many acts of consumer law.  Good guidelines and indications as to what the level of consumer protection should be is provided by Council Directive 93/13/EEC of 05 April 1999 on unfair terms in consumer contracts .

Another unfair practice by financial institutions misleading consumers was corporate bonds. The bonds offered and sold by GetBack S.A. are a publicized example. The proceedings of financial supervisory authorities and institutions to date have shown that the representatives of GetBack S.A. could consciously mislead consumers, ensuring that the bonds constitute a safe investment and the Company’s condition is stable. Many consumers have invested their life savings in GetBack S.A. corporate bonds. Now it is an example that these savings may be largely lost.

A real chance to regain the savings placed in GetBack S.A.’s corporate bonds is to take legal action against the entities cooperating with GetBack S.A. in launching this product on the Polish market. The group of these entities includes various brokerage houses, financial advisors used by GetBack S.A., but also banks, which very often selected their own clients and then facilitated GetBack S.A.’s offer to purchase these bonds. In the opinion of our Law Firm, these were also illegal practices.

Bonds and policy-investments – what we do:

  • analyze the legitimacy and value of the Client’s claim on account of termination of the policy-investments Agreements and application of abusive clauses by insurance companies in these agreements,
  • bring actions against insurance companies for the reimbursement of the illegally charged liquidation fees and the award of statutory interest due,
  • take action against insurance companies to dissolve the policies and annul any illegal financial sanctions imposed on the consumer by the policies,
  • analyse the legitimacy and value of the Client’s claim for the purchase of bonds against GetBack S.A. and entities cooperating with the Company,
  • represent the Client in complaint proceedings against insurance companies, bond issuers and other financial institutions responsible for applying prohibited financial and commercial practices,
  • undertake pre-trial activities on behalf of the Client: we make calls for payment, conduct negotiations, advise on the conclusion of a settlement,
  • bring actions for damages against entities cooperating with GetBack S.A. on account of the Client’s purchase of GetBack S.A. bonds.
  • represent the Client at every stage of court proceedings: we prepare pleadings, strategies for conducting cases, participate in hearings and meetings before common courts of both instances and the Supreme Court,
  • represent the Client before the authorities and institutions of financial supervision of the Polish market: The Polish Financial Supervision Authority, the Insurance Ombudsman, the President of the Office of Competition and Consumer Protection or the Financial Ombudsman.

Our services includes legal assistance at every stage of complaint, settlement, security, court and enforcement proceedings.

Contact us for more information.