Constitutional Court to hear contract defense case referrals on Tuesday

Issues

The Constitutional Court will start hearing on Tuesday four cases on unilateral changes to loan contracts referred by lower courts, Hungarian news agency MTI reported today.

Dozens of lenders have defended such changes to contracts in court recently to avoid paying refunds to affected retail clients under borrowers' relief legislation approved in the summer.

The four cases were referred to the Constitutional Court to clarify whether the law violates the principle that legislation cannot be applied retroactively, the Constitutional Court's general secretary, Botond Bitskey, told MTI on Friday. He added that the court had 90 days to pass decision in the cases now merged into a single procedure.

Judges of the appellate court also thought that the forex law harms legal safety, the requirement that norms should be made clear, and unnecessarily curbs the appellant's right to a fair procedure.

On October 2, Justice Minister László Trócsányi said that appeals cases concerning banks' defense of unilateral changes to contracts were expected to be completed by mid-November.

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