The Swiss franc loan, which was contracted in the 2000s to border banking institutions, was to offer an attractive rate. Many borrowers today discover that their contract involved a currency risk poorly explained or even hidden. This opens the way for a cancellation procedure, provided that a rigorous method is followed. Here are the five steps that structure this type of approach.
Why loans in CHF are today questionable
A loan in Swiss currency is based on an apparently simple mechanism: the borrower repays in euros capital indexed to the Swiss franc. When the exchange rate changes negatively, the debt rises mechanically, sometimes spectacularly. Many border borrowers have never received a clear explanation of this risk at the time of signing.
European law has long provided a protective framework. Directive 93/13/EEC defines the abusive clause as one which, despite the requirement of good faith, creates a significant imbalance at the consumer's expense between the rights and obligations of the parties. This definition serves as a basis for French courts to assess the abuse of foreign exchange risk clauses included in foreign currency lending contracts.
The jurisprudence changed significantly in 2025. In a judgment of 9 July 2025, the Court of Cassation ruled that foreign currency loans involve a foreign exchange risk even when the borrower receives his income in the same currency. This decision extends the number of cases eligible for annulment, particularly among Swiss border workers.
Step 1: Pre-diagnosing your file
Before any action, a full diagnosis of the file is required. The aim is to collect the initial contractual documents: loan offer, annexes, depreciation tables and simulations submitted at the time of subscription. This work allows to identify the possible presence of disputed clauses foreign exchange risk.
This preliminary diagnosis is the first step in cancel your loan in currency, by checking the consistency between the simulations presented at the time and the reality of the actual exchange risk involved. The eligibility of the file depends largely on the quality of the information provided by the bank during subscription. A silent contract on the consequences of euro depreciation is often a strong indicator.
Step 2: Building a Strong File
Once the eligibility has been confirmed, the file will become the central stage. Several documents are essential to demonstrate the bank's failure to comply with its information obligations.
- Initial loan offer and its contractual annexes
- The overall effective rate (TEG) mentioned and its method of calculation
- Correspondence with the bank
- Full history of repayments made
Each document brings a brick to the demonstration. The TEG is often subject to technical challenges before the courts. A complete and chronological file facilitates the work of the lawyers responsible for analysis.
Step 3: the friendly phase with the bank
Before any judicial referral, an amicable phase is usually initiated. It starts with sending a notice of formal notice setting out the grievances identified and the requests made by the borrower.
The bank has a response period, often several weeks, to position itself. This step remains strategic: sometimes it allows a negotiated solution to be reached without going through lengthy and uncertain litigation. It is also one additional room in the file If the discussions fail.
Step 4: Referral to the Court
When the amicable phase fails, referral to the court becomes necessary. The procedure begins with the assignment of the bank, followed by an exchange of conclusions between the parties.
The average length of such proceedings is several years, depending on the complexity of the case and the burden of the court. The borrower must expect pre-trial hearings, possible expert assessments and a judgement that will determine the validity of the contract. Accompaniment by lawyers specializing in this type of litigation remains decisive.
Step 5: the concrete effects of a loan cancellation
When cancellation is pronounced, the effects are concrete. The bank must return the amounts collected beyond the capital actually due, and the loan is recalculated in a revised manner, often without indexation to the Swiss franc.
Recent history illustrates the brutality of this currency risk. On 15 January 2015, the Swiss National Bank terminated the minimum rate of CHF 1.20 per euro, causing an immediate appreciation of the Swiss currency up to about CHF 0.97 per euro on the same day. For a borrower who contracted CHF 200,000, this only day mechanically increased the remaining capital owed in euros by tens of thousands of euros. A cancellation helps to neutralise this effect by recalculating debt on a more equitable basis, close to a classic loan in euros.
Where to start: Have your file evaluated
Given the complexity of this type of litigation, the best approach is to have a professional in banking assess his file. This personalized analysis makes it possible to measure concretely the chances of obtaining the cancellation of the loan in Swiss francs.
Each situation remains unique: date of subscription, exact content of the contract, income in euros or Swiss francs. A specialized lawyer can identify the specific flaws in the file and direct to the most appropriate strategy, amicable or judicial.
The path towards cancellation of a loan in CHF follows a precise logic: diagnosis, preparation of the file, amicable attempt, then litigation if necessary. Each step builds on concrete pieces and on a jurisprudential evolution now favourable to border borrowers. The effects of successful cancellation, repayment of overpayments and recalculation of the loan justify investment in a rigorous procedure. Having his file evaluated remains the first decision to turn a doubt into a structured approach.
Sources:
- Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts – European Union, 1993. https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:31993L0013
- Judgment of 9 July 2025, No. 24-19.647, published in Bulletin – Court of Cassation, 1st Civil Chamber, 2025. https://www.doctrine.fr/d/CASS/2025/CASSPAFC4CBD2FA5152F0D737
- Swiss National Bank discontinues minimum exchange rate and lowers interest rate to -0.75% – Swiss National Bank, 2015. https://www.snb.ch/en/publications/communication/press-releases/2015/pre 20150115