CHF denominated loans – a case study of Montenegrin approach

Montenegro has harmonized its legislation with EU consumer protection directives during its ongoing accession negotiations. However, in view of the CHF denominated loans issue, harmonization in financial services sector came too late. To that end, the main objective of this paper is to present the case study of Montenegrin “solution” to this problem, as well as some of the key problems this “solution” has caused. The reactions of the Montenegrin Parliament, amendments and new legal texts relating to consumer protection, which were the product of the Parliaments frenetic legislative activities carried on the wings of public’s outrage with this case, are scrutinized. In that regard, all the problems that followed the “Montenegrin solution” are critically examined and along with those some of the most interesting cases trialed before the Montenegrin courts in the cases of CHF denominated loans. The above analyses are complemented with the analysis of the Montenegrin media coverage of some of the most interesting media reports regarding the CHF denominated loans, particularly of the relevant case law. The conclusion is made that cooperation of all the relevant persons and institutions entrusted with facilitating and executing consumer protection is of primary importance for efficient protection of consumer’s rights and legitimate interests.