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MNB fines banks HUF 124 mln for borrowers relief shortfalls

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Photo by Jessica Fejos

The National Bank of Hungary (MNB) levied HUF 124 million in fines penalizing lenders for shortfalls related to compensation they were required to award clients under borrowersʼ relief legislation by the end of last year, a report released by the central bank and financial market watchdog yesterday shows.

The MNB conducted 321 investigations involving the compensation and the conversion of FX retail loans, beginning in Q1 2015. It ordered temporary measures on 104 occasions and issued consumer protection warnings in 133 cases.

The bankʼs Financial Consumer Protection Center has received 1,042 official complaints and more than 29,800 inquires related to the borrowersʼ relief law. Of these, 16,000 complaints were seen by an arbitration body, which decided in favor of the borrowers in just 1% of cases. 

Altogether, the MNBʼs consumer protection directorate conducted 1,172 investigations last year at the institutions it oversees, levying HUF 202 mln in fines in 280 cases, MNB director Vilmos Freisleben told journalists yesterday. 

Insurance companies paid HUF 107 mln in consumer protection fines, banks paid HUF 49 mln and financial businesses paid HUF 24 mln. 

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