ADVERTISEMENT

MNB wins court cases against lenders

Issues

Image by Jessica Fejos

The National Bank of Hungary (MNB) said today courts had ruled in its favour in almost all of the cases it brought against 16 lenders on charges of making unfair unilateral changes to loan contracts signed after November 26, 2010.

In all, MNB said it won legal proceedings against 12 lenders, while two other lenders voluntarily changed their practices, one case is under review and one case has been suspended.

The final verdicts stated that lendersʼ contracts were mostly unfair in their stipulations, therefore they have been declared invalid.

Legislation approved by Parliament last year requires lenders to compensate borrowers for making unilateral changes to loan contracts. However, the law applies differently to contracts signed after November 26, 2010, when stricter transparency rules came into force.

Legislation on the settlement of the compensation required 210 Hungarian financial institutions to submit data to the MNB in March on contracts signed after this date. Of these, 138 said they had not made unilateral changes to loan contracts, while 56 institutions conceded they had and volunteered to compensate clients. The MNB took the remaining 16 to court.

ADVERTISEMENT

Rate-setters augur slower decline in CPI in 2022 Analysis

Rate-setters augur slower decline in CPI in 2022

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

The strongest move - Morgan Stanley Hungary head and Chess F... Podcasts

The strongest move - Morgan Stanley Hungary head and Chess F...

ITM, capital gov't agree on support for public transport City

ITM, capital gov't agree on support for public transport

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.