Court decision could affect thousands of car loans
Several thousand car loans could be affected by the Municipal Court of Budapest’s recent decision to invalidate a contract that was signed by an unauthorized dealer, daily newspaper Magyar Nemzet said.
The court upheld a first-instance decision on the matter in an un-appealable ruling on Tuesday. The ruling could become a precedent for other borrowers, the ’paper reported.
Krisztina Bihari, attorney for the borrower in the case, told the paper that legislation in force before 2010 allowed for the possibility of car dealers to sign loan contracts in the name of lenders or to act as intermediaries.
Attila Fojt, who heads the Hungarian Association of Automobile Dealers (GéMOSz), said he knew of no dealers that had been authorized to sign credit agreements in the name of lenders.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.