FEDERACJA KONSUMENTÓW RADA KRAJOWA POLISH CONSUMER FEDERATION NATIONAL COUNCIL

1. FINACIAL HEALTHOF TODAY`S (POLISH) CONSUMERS Financial capability of European consumers: Best practice and long term solutions Brussels 27th January 2010 FEDERACJA KONSUMENTÓW RADA KRAJOWA POLISH CONSUMER FEDERATIONNATIONAL COUNCIL Aleja Stanów Zjednoczonych 53, 04-028 Warszawa Sekretariat: (48 22) 827 11 73, fax (48 22) 827 90 59 www.federacja-konsumentów.org.pl

2. Consumer Federation is a non-governmental, independent organization founded in 1981 whose main aim is the protection of an individual consumer in Poland. It operates in the whole country thanks to the network of 48 local advice offices which provide legal advice and cooperate with volunteers. In 1999 Consumer Federation became a member of European Consumers` Organization (BEUC). Consumer Federation is also member of Consumers International – since 1987. It is difficult to find a sphere of the social life that would not involve consumer protection. Thus, Federation has always tried to help Polish consumers efficiently. www.federacja-konsumentow.org.pl

3. Polish Consumer Federation: • Co-operates with other organisations and governmental agencies, such as: Office of Competition and Consumer Protection, Polish Financial supervision Authority, Office of Electronic Communications, Energy Regulator Office, Insurance Ombudsman. • Provides free of charge legal advice to all consumers, even if they do not belong to our organization. Anyone who would come, call or send a letter to one of 48 our branches will be provided with our help, free of charge. • Represents Polish Consumers in the European economic and Social Committee and in European Consumer Consultative Group (DG Sanco) www.federacja-konsumentow.org.pl

4. Initiates pro-consumer changes in legislation. Creates consumer lobby to promote consumers’ interests, seeking support for consumer protection policy among Parliament members. Consumer Federations lawyers work in standardization and certification commissions provides schools with consumer education programs. Teachers enrich their lessons with programs prepared by Federation. During the lessons students not only get familiar with legal regulations, but they also analyze their own consumer behaviour and recognize the role of a consumer in the modern society. Co-operates with media Programmes (Project „Information” – Comparative test of financial products)

5. direct, written, via e-mail, via telephone legal • written interventions on behalf of consumers • mediation • participation in Consumer Courts • participation in court cases concerning consumer law www.federacja-konsumentow.org.pl

6. I„consumer” in polish law: Art. 221 Civil Code: As a consumer is considered a natural person carrying out legal activities not directly linked to his trade or profession . www.federacja-konsumentow.org.pl

7. Consumer protection of different levels: European Union law National law Governments supervision NGOs supervision

8. Polish law: Ustawa z dnia 29 sierpnia 1997 r. prawo bankowe (Dz.U.2002.72.665), Ustawa z dnia 20 lipca 2001r. o kredycie konsumenckim (Dz.U.2001.100.1081) Ustawa z dnia12 września 2002 r. o elektronicznych instrumentach płatniczych (Dz.U.2002.169.1385) Ustawa z dnia 2 marca 2000 r. o ochronie niektórych praw konsumentów oraz o odpowiedzialności za szkodę wyrządzona przez produkt niebezpieczny (Dz.U.2000.22.271) Ustawa 23 sierpnia 2007 r. o przeciwdziałaniu nieuczciwym praktykom rynkowym (Dz.U.2007.171.1206)

9. Governments supervision: National Bank of Poland – banks Polish Financial Supervision Authority – banks, insurance companies, stock exchange Office of Competition and Consumer Protection – banks and financial institutions

10. NGO sector: Consumer organizations Arbitration in consumer banking

11. Consumers needs: Education – financial education in schools, trainings and lectures, educational materials. Consumers in Poland, especially older ones, have low level of knowledge in the are of financial market. Education of household financial management including credit commitments. Legal advice - in case of conflict with the bank or other financial institution, consumer needs legal assistance, as a weaker party. In Poland it is registered and operating in 92 banks and branches of banks, credit institutions and foreign banks and 579 cooperative. Product range is therefore very rich.

12. Impact of financial crisis on the Polish consumer's point of view: Amendments to contracts by the banks: increasing interest rates, increasing the security of mortgage contracts - banks often on the basis of illegal entries change its contract with customers so as to protect themselves.

13. Reduced availability of credit products, increasing the range of term deposits. Banks and financial supervision institutions have placed greater demands on the customer's creditworthiness, its evaluation by the bank. As a result, fewer consumers can get a mortgage

14. Excessive debt - the most severe effects of the crisis. During the credit boom, many consumers obtain loans despite the lack of creditworthiness. Banking products have been sold without checking the credibility (for a declaration as proof) just to get the better results. As a result, consumers not having enough knowledge about financial services and budget management of the home, felt into the credit loop (basic and most popular error: taking credit for the repayment of the instalments without debt consolidation)

15. Thank you for attention. Lukasz Wozniacki lawyer Federacja Konsumentów e-mail: lukasz@federacja-kosnumentow.org.pl FEDERACJA KONSUMENTÓW RADA KRAJOWA POLISH CONSUMER FEDERATIONNATIONAL COUNCIL Pl. Powstańców Warszawy 1/3, 00-030 Warszawa, Polska Sekretariat: (48 22) 827 11 73, fax (48 22) 827 90 59 www.federacja-konsumentów.org.pl