ADVERTISEMENT

Appeals court confirms first-instance loan defense ruling against MKB Bank

Issues

The Budapest Municipal Court of Appeals confirmed in a non-appealable ruling on Wednesday a first-instance ruling rejecting MKB Bank's defense of changes it made to retail loan contracts, Hungarian news agency MTI reported today. The defendant in the case, the state of Hungary, bought MKB from Germany's BayernLB in a transaction closed late September.

Under legislation approved in the summer, lenders must compensate retail clients for making unilateral changes to contracts unless they can successfully defend the practice in court. Not a single defense has been entirely successful, although the practice of modifying contracts was ruled fair for some lenders but only for limited periods. Some cases were also referred to the Constitutional Court on the grounds that the right to due process was violated.

ADVERTISEMENT

Fiscal, monetary policy partnership needed to rein in CPI - ... Analysis

Fiscal, monetary policy partnership needed to rein in CPI - ...

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

FAO–Food Bank convoy delivers food to those in need City

FAO–Food Bank convoy delivers food to those in need

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.