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Lenders weigh court defense of unilateral changes to forint loan contracts

Issues

OTP Bank and Erste Bank are considering legal recourse regarding the settlement of compensation for unilateral changes to forint loan contracts, and K&H Bank already plans to file a case, the lenders told MTI. 

The press department of Budapest's Municipal Court said no cases had been filed on the matter on Monday or by yesterday afternoon. Banks have between January 5 and 12 to make their cases on the matter of refunds to borrowers stipulated in legislation approved by Parliament last year.

Lenders that do take their cases to court must settle compensation owed to their clients between August 15 and September 30 of this year, or within 60 days from the conclusion of the court case. Banks that decide against making their cases in court must settle with clients between April 16 and 30.

A number of banks earlier defended in court the practice of making unilateral changes to retail loans denominated in forex currency. The legislation approved by lawmakers prohibits the practice for both FX and forint loans.

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