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PSzÁF bans Erste Bank early FX repayment application form

The Hungarian Financial Supervisory Authority (PSzÁF) has prohibited Erste Bank Hungary from using its application form for participation in an early FX mortgage repayment scheme as the form could infringe the law on the prohibition of unfair business practices, PSzÁF told MTI on Wednesday.

Erste Bank Hungary has acknowledged the resolution and said it immediately corrected the contents of the form.

PSzÁF has established that the request form applied by Erste Bank Hungary contains the following clause: "The claim (to avail of the early lump sum repayment opportunity) can be submitted only once by December 30, 2011!"

The regulations stipulate that consumers have the opportunity to announce their intention for early repayment at a discounted fixed exchange rate by December 30. The law, however, does not set a condition under which consumers can only apply for early repayment only once, PSzÁF said.