PSzÁF prohibits Magyarországi Volksbank early FX repayment request form

Competition

Hungarian financial market regulator PSzÁF on Monday said it prohibited Austrian-owned Magyarországi Volksbank from using a request form for clients to participate in an early repayment scheme until it completes an investigation.

PSzÁF said the request form could be considered an unfair trade practice.

Under the government-authored scheme, retail forex mortgages may be repaid early, in full, at a discounted exchange rate, with banks covering the cost of the difference between the market exchange rate.

The form requires clients to promise repayment of the difference between the discounted rate and the market rate if Hungary's Constitutional Court rules against the measure.

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