MNB wins court cases against lenders
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.
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