PARIS (Reuters) – BNP Paribas has signed an agreement with France’s leading consumer group CLCV for between 400 million and 600 million euros ($662.3 million) compensation after its consumer credit unit was sentenced over misleading practices about swiss-franc mortgages, French daily Le Parisien said on Monday.
BNP Paribas Personal Finance (BNPPF), known through its Cetelem brand, in late November was found guilty of concealing the risks of its Helvet Immo Swiss franc loan, of which some 4,600 contracts were signed in 2008-2009.
The loan, designed for tax-free rental investment, was made in Swiss francs but repayable in euros. The repayment soared when the euro fell against the Swiss currency after the 2008 financial crisis.
BNP Paribas and CLCV were not immediately available to comment.
($1 = 0.9060 euros)
(Reporting by Sybille de La Hamaide, Kate Entringer and Tassilo Hummel; Editing by Bill Berkrot)
