Abstract

The article addresses the issue of the retroactive effect of a set-off in the Swiss franc cases. Recently, there has been a noticeable development of a view among bank representatives and some courts hearing the so-called Swiss franc cases regarding borrowers’ loss of the right to claim default interest due to the retroactive effect of a set-off declaration. In their opinion, a set-off made by borrowers has a retroactive effect from the moment when the borrowers’ claim became due, and consequently, borrowers are not entitled to default interest on claims covered by a set-off. The authors of the article analyzed the legal and jurisprudential foundations of this construct, pointing out the flaws in the view presented by bank representatives and its consequences for borrowers and the Swiss franc cases themselves.