Helvet Immo loans: BNP Paribas could pay up to 600 million euros

The consumer defense association Consumption, Housing and Living Environment (CLCV) “found, at the suggestion of BNP Paribas Personal Finance, an amicable solution for customers (around 4.400) who had subscribed to the Helvet Immo real estate loan contract ", she declared in a press release sent to AFP on Monday and confirming information from Le Parisien.

Contacted by AFP, BNP Paribas Personal Finance (BNPP PF) confirms “an amicable agreement” concluded with the consumer association.

Marketed during 2008 and 2009, this loan intended for tax-free rental investment had the particularity of being denominated in Swiss francs but repayable in euros.

In the wake of the financial crisis, the euro fell sharply against the Swiss currency: the amounts to be repaid soared and contracts became financial pits.

The case was the subject of criminal proceedings to which CLCV was a civil party since 2015.

At the end of November, BNPP PF, known via its Cetelem brand, was found guilty on appeal of deceptive commercial practices and concealment, for having concealed the risks of its Helvet Immo Swiss franc loan, and ordered to pay considerable damages, which amount to tens of millions of euros.

In parallel with this criminal aspect, the CLCV had also initiated an action to cease unfair clauses during the year 2017 relating in particular to indexation to the Swiss franc, as well as a group action from 2016.

“Under the terms of the agreement concluded, BNP Paribas Personal Finance undertakes to offer a solution in the coming months to all borrowers,” according to the consumer association’s press release.

According to a source close to the matter, the agreement provides for the cancellation of the loan contract (for a unit amount generally ranging from 120.000 to 150.000 euros). This could lead BNP Paribas to pay between 400 and 600 million euros, according to this source's estimate.

BNP and its subsidiary BNPP PF did not wish to comment on the amount represented by such an agreement.

The CLCV association “expresses its satisfaction at reaching an amicable outcome, in the interest of the consumers concerned and without having to wait for final decisions to be rendered in the actions it had initiated, in particular the group action”.