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MNB takes lenders to court over unilateral changes to contracts

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The National Bank of Hungary (MNB) said last Thursday that it launched court cases in the public interest against 16 lenders for making "unfair" unilateral changes to loan contracts signed after November 26, 2010, Hungarian news agency MTI reported. 

Legislation approved by Parliament last year requires lenders to compensate borrowers for making unilateral changes to loan contracts. However, the law applies differently to contracts signed after November 26, 2010, when stricter transparency rules came into effect.

Legislation on the settlement of the compensation required 210 Hungarian financial institutions to submit data to the MNB in March on contracts signed after this date. Of these, 138 said they had not made unilateral changes to loan contracts, while 56 institutions conceded they had and volunteered to compensate clients.

The MNB is taking the remaining lenders to court: Aegon Magyarország Hitel, Borsod Takarék Takarékszövetkezet, CIB Bank, CIB Lízing, Citibank Europe Magyarországi Fióktelepe, FHB Jelzálogbank, FHB Kereskedelmi Bank, Magyar Cetelem Bank, MKB-Euroleasing Autohitel, MKB-Euroleasing Autolízing, OTP Bank, OTP Jelzálogbank, Örkényi Takarékszövetkezet, Sopron Bank Burgenland, UCB Ingatlanhitel and Zalavölgye Takarékszövetkezet.

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