MNB Fines Cash4Car HUF 160 mln for Unlicensed Lending

MNB

Photo by Adriana Iacob/Shutterstock.com

The National Bank of Hungary (MNB) has fined the local and Czech businesses of Cash4Car HUF 160 million for unlicensed lending activity, the central bank and financial market regulator said on Monday, according to a report by state news wire MTI.

Cash4Car bought vehicles from private individuals and businesses at or under market prices and signed repurchase agreements with the sellers who were allowed to use the cars in the interim period. Cash4Car charged the sellers a "holding fee" while it owned the vehicles. 

MNB said it had established that Cash4Car was in the lending business, not the used car business, and had offered "several hundred million forints" of credit in over 300 instances.

MNB filed a report with the Metropolitan Prosecution Service on suspicion of criminal activity in the case.

Bamosz Investment Fund NAV Reaches HUF 15.624 tln in March Analysis

Bamosz Investment Fund NAV Reaches HUF 15.624 tln in March

Hungary Condemns Iranian Attack on Israel Int’l Relations

Hungary Condemns Iranian Attack on Israel

Share of 1st Time Home Buyers Climbs Residential

Share of 1st Time Home Buyers Climbs

Tribe Hotel Budapest Stadium Recognized at LIV Hospitality D... Hotels

Tribe Hotel Budapest Stadium Recognized at LIV Hospitality D...

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.