THE USURY IN CONTEMPORARY POLISH LAW AND USURY LAW REGULATIONS IN SOME MARKET ECONOMY COUNTRIES

Abstract

From a legal point of view, the usury rate is an abnormally high rate in relation either to a maximum rate set by legislator or to certain principles, such as accepted standards of good behavior or fair business practices. Most UE States control usury practices a posteriori by jurisprudence. However some countries (Italy, France) have an objective control system for usury. Cases of usury are present in polish economy during transition. The anti usury act was passed by Polish Parliament in July 2005. Setting objective controls regulated the issue of usurious rates in Poland: rates cannot exceed four times the official lombard rate of Polish Central Bank (as a “maximum interest”). Polish consumer credit regulation is designed to protect borrowers against unfair credit terms. Polish credit institution should provide information about all the costs that the customer has to pay including interest and the other charges. Anti usury regulations were criticized by Polish Cabinet, Polish Central Bank, financial institutions and many polish entrepreneurs organizations.