Poland consumer debt and legal disputes rise

New data from ERIF Biuro Informacji Gospodarczej shows that the average debt per resident in Poland has increased by nearly 1,090 PLN over the past year, reaching 23,557 PLN. While the total value of unpaid debts in the country fell by 400 million PLN year-on-year to 29.05 billion PLN, experts suggest that debt is becoming more concentrated among a smaller group of consumers. The average number of obligations per person also rose from 1.9 to 2.01.

Common sources of debt include multimedia services, such as phone and internet bills, installment purchases, alimony, and court fees. Multimedia and installment debts accounted for 23.28 percent of reported cases, while alimony represented 16.39 percent.

Simultaneously, Polish courts are seeing a surge in litigation regarding free credit sanctions. In the third quarter, 8,284 cases were filed, a 110 percent increase in consumer-led filings compared to the start of the year. Data from the Ministry of Justice indicates a shift in legal activity: while debt-buying firms previously dominated these cases, consumers now account for nearly 55 percent of new filings regarding free credit sanctions.