Swiss franc loans: estimating the gain from annulment.

The gain from a claim against a Swiss franc loan is estimated from three amounts. They are the sums paid to the bank, converted into euros instalment by instalment, the capital received in euros and, for a loan still running, the capital that remains owed. If the exchange‑rate clause is found unfair, the court has the loan recalculated in euros, or it annuls the contract Source [1] Source [2]. These two outcomes do not give the same amount.

The two possible outcomes.

An unfair term is deemed unwritten, and the contract continues to apply without it “if it can subsist without these terms” (article L. 241-1 of the French Consumer Code) Source [1].

When the contract subsists, the loan is recalculated as if it had been taken out in euros, from the outset (Cour de cassation, 12 July 2023) Source [2]. The calculation then compares what you paid with what the same loan would have cost in euros.

When the contract cannot subsist without the clause, it is annulled. An annulled contract “is deemed never to have existed”, and what was performed must be returned (article 1178 of the French Civil Code) Source [3]. The bank returns what it received, and the borrower the capital paid out to them.

If the clause is found unfair, the court chooses between these outcomes in light of the contract and the documents. Our guide to the borrower’s remedies sets out the whole process.

The sums paid, instalment by instalment.

A loan denominated in Swiss francs is repaid in euros, at the exchange rate of each instalment’s date. The same instalment in francs therefore costs more in euros when the franc rises.

According to the European Central Bank’s reference rates, it took 1.6803 francs to buy one euro on 12 October 2007, and 0.9431 francs on 14 September 2026 Source [4]. An instalment of 1,000 francs therefore cost €595.13 at the first rate and €1,060.33 at the second Source [4].

The calculation includes each instalment paid, with its date, as well as early repayments and the redemption statement where there is one. Bank statements show the euros actually debited. The rate applied by the bank may differ from the reference rate, and a statement establishes it.

The capital received in euros.

The capital received is the amount in euros made available when the funds were released. For a loan denominated in francs, it is the equivalent value of the capital at the rate of the release date.

A capital of 100,000 francs was worth €59,513.18 at the rate of 12 October 2007 Source [4]. The same capital is worth €106,033.29 at the rate of 14 September 2026 Source [4].

A loan released in several instalments, for example for a construction project, is counted tranche by tranche. Each tranche is converted at the rate of its own date.

The debt still to be repaid.

For a loan still running, the outstanding capital is still expressed in francs. Converted at today’s rate, it weighs more in euros than on the day the funds were released.

If the loan is recalculated in euros, that outstanding capital is recalculated too, and the difference reduces the future debt. If the contract is annulled, the debt in francs disappears. The calculation then takes the difference between the two restitutions, what the bank received and what the borrower received.

The steps of the calculation.

1. List each instalment paid, in francs, with its date, from the bank’s amortisation schedule.
2. Convert each instalment into euros, at the rate of its date, or from the bank statements.
3. Add up the euros paid, including early repayments and the final settlement.
4. Calculate what the same instalments would have cost at the rate of the release date. The difference is the exchange‑rate overcharge already paid.
5. Convert the outstanding capital at today’s rate, then at the rate of the release date. The difference is the overcharge on the future debt.
6. For an annulment, subtract the capital received from the sums paid, then add the debt in francs that disappears, at today’s rate.

A worked example.

Take a fictitious loan of 200,000 francs, released on 12 October 2007, repayable in 300 monthly instalments of 948.42 francs, at a fictitious fixed rate of 3% a year Source [4]. The instalments fall on the 12th of each month. The calculation stops on 14 September 2026, after 227 instalments, each converted at the latest European Central Bank rate published on its date Source [4].

If the clause is set aside and the loan recalculated in euros, what is at stake in this example lies in the two overcharges. They are €62,142.46 already paid above the release rate, and €29,406.95 less in future debt Source [4].

If the contract is annulled, the bank returns the €190,268.07 paid, and the borrower the €119,026.36 received. The difference is €71,241.71 Source [4]. The debt of €67,027.27 at today’s rate also disappears, making €138,268.98 in all for this example Source [4].

These amounts illustrate the method. They say nothing about a real claim, which the court assesses on its own documents.

What changes the amount.

The release date comes first. On 12 October 2007, the franc stood at its weakest against the euro in the whole series since 2002, at 1.6803 francs per euro Source [4]. A loan released on 2 January 2002, at 1.4833 francs per euro, went through a smaller rise Source [4].

The profile of the loan also matters. A bullet loan only repays the capital at its maturity: the instalments paid are mostly interest, and what is at stake lies first in the outstanding capital. A repaid loan has no future debt, and the calculation covers the sums paid, final settlement included. Our article on the repaid Swiss franc loan covers this case.

Amendments, early repayments, rate changes and insurance premiums also change the sums paid. Each one is read from a document: offer, amortisation schedule, amendment or redemption statement. Our list of documents to gather sets them out.

Finally, the restitution claim has its own time limit. It becomes time‑barred five years after the decision that finds the clause unfair Source [2]. Our article on the time limit for bringing a claim explains the rules.

How the programme quantifies a claim.

Hello Justice has developed its own simulator. It recalculates each instalment of your loan at the official European Central Bank rates and at the interest rates set by your contract. It then checks the result against the lines of your bank’s amortisation schedule. ACTIVE AVOCATS, a firm of the COGEP AVOCATS group, relies on this calculation to quantify your claim.

The programme’s eligibility test starts with a few questions about your loan, and the documents can then be uploaded from your online space. Having your case checked is free, as are the eligibility test and the submission.

Frequently asked questions.

Can I estimate the gain from an annulment myself?

Yes, as an order of magnitude. Add up the euros debited for the loan, subtract the capital received, then add the outstanding capital converted at today’s rate. A reliable figure requires the offer, the amortisation schedule and the bank statements, instalment by instalment.

Will the estimated amount be the one in the judgment?

Not necessarily. The court decides the outcome, recalculation in euros or annulment, and rules on the sums the documents establish. The estimate measures what is at stake before a claim is brought.

Why the European Central Bank rate?

Its reference rates form a public series, one value per quotation day, that anyone can check Source [4]. The rate the bank actually applied can be read on the bank statements, which can complete the calculation.

What changes for a loan already repaid?

There is no future debt. The calculation covers the sums paid, final settlement included, and the capital received. Our guide to the stages of a claim then shows how the claim is brought before the court.

How much does quantifying my claim cost?

Having your case checked is free, as are the eligibility test and the submission. The costs of an accepted claim are set out in our article on the cost of proceedings.