Prohibition to transfer of ownership of property to secure usury

Abstract

The Szkoła Specjalna issue no 5 of 2016 and no 1 of 2017 discusses the so-called transfer of ownership of property to secure loan (Szeroczyńska, 2016, 2017). From May 16, 2020, the Act amending certain acts in the field of protective measures in connection with the spread of the SARS-CoV-2 virus significantly limited the possibility of concluding this type of agreements, as well as the criminal liability for usury. Considering the fact that people with intellectual disabilities were quite often the victims of this type of activities, which led them to increasing debts, and even led to a situation where they were thrown out of the apartment, all efforts to introduce protection of the weaker party to the contract should be assessed positively. This article discusses the changes to the Civil Code and the Penal Code introduced by this Act relating to the transfer of ownership of residential premises and the granting of loans with high interest rates, indicating to what extent the legal status discussed in the articles of 2016 and 2017 has changed, and analyzes whether the amendment in question will be an effective tool to protect against usury and loss of residential premises for nothing.