ADVERTISEMENT

MNB wins most cases against lenders

Issues

The National Bank of Hungary on Thursday said the Municipal Court of Budapest had ruled in its favour in the majority of cases it brought against 16 lenders for making unfair unilateral changes to loan contracts signed after November 26, 2010.

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 – Aegon Magyarország Hitel, Borsod Takarék Takarékszövetkezet, CIB Bank, CIB Lízing, Citibank Europe Magyarországi Fióktelepe, FHB Jelzálogbank, FHB Kereskedelmi Bank, Magyar Cetelem Bank, MKB-Euroleasing Autohitel, MKB-Euroleasing Autolízing, OTP Bank, OTP Jelzálogbank, Örkényi Takarékszövetkezet, Sopron Bank Burgenland, UCB Ingatlanhitel and Zalavölgye Takarékszövetkezet – to court.

The MNB recounted on Thursday that the court had decided in twelve first-instance rulings that the lendersʼ contracts were wholly or in part invalid. The Court of Appeals upheld one of the rulings, while two of the parties volunteered to compensate their clients, resulting in the cancellation of their court cases, and one of the cases was suspended because of a rectification procedure, the MNB added.

In two more cases, the first-instance rulings became legally binding after appeals were not made, and the defendants in two more cases have not appealed to the MNBʼs knowledge.

The court has 45 days to decide on cases that have been appealed, the MNB noted.

ADVERTISEMENT

Pressure increasing on CFOs - PwC survey Analysis

Pressure increasing on CFOs - PwC survey

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

Capital sees urban exodus during pandemic City

Capital sees urban exodus during pandemic

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.