Are you sure?

Amended debtor “blacklist” rules could weaken repayment discipline, says Hungarian banking association

A recent amendment reducing the period retail borrowers missing payments remain on the “blacklist” of defaulting debtors from five years to one year after settling their debt could lead to a reduction in credit repayment discipline, Banking Association Senior Advisor János Müller told MTI.

This is a risk which banks will have build into costs for good debtors, Müller said.

Retail borrowers who fall behind on loan payments by more than the monthly minimum wage of HUF 73,500 for a period of more than 90 days are placed on the list.

Müller said the banking association was not consulted regarding the amendment. (MTI – Econews)