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GVH fines three financial companies combined Ft 99 mln

Hungary's Competition Office (GVH) said on Friday it fined three financial companies a combined Ft 99 million for misleading clients in a single case.

The GVH fined marketing and consulting company MBI Kft Ft 72 million, Union Insurance Zrt Ft 24 million and K&H Bank Nyrt Ft 3 million. According to the ruling, the three companies advertised that clients who signed a special unit-linked life insurance policy would have the opportunity to take out a preferential loan. The opportunity was available because of the backing of a bank, the advertisement said.
However, the GVH established that there was, in fact, no such bank loan construction. The GVH explained the sizes of the fines noting that the offense was the third such one for MBI. It also cited the long terms (20 years) of the life insurance contracts and their possible long-term effect on the market.