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OTP back in court to defend loan contracts

Issues

OTP Bank has re-submitted cases to court defending unilateral changes to loan contracts, chairman-CEO Sándor Csányi told MTI yesterday. The appeals of OTP Bank, OTP Mortgage Bank, OTP leasing unit Merkantil Bank and OTP Real Estate Leasing were earlier rejected by the court for formal reasons.

Under borrowers' relief legislation approved in the summer, Hungarian lenders must compensate clients for unilateral changes to contracts unless they can successfully defend the practice in court.

Csányi said OTP Bank had asked the court to turn to the Constitutional Court and the European Court of Justice on the matter of the legislation. If the court does not rule in OTP Bank's favour, Csányi said the lender would "try to turn to these forums ourselves". The re-submitted cases involve 120,000-130,000 contracts, he said.

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