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OTP Home Savings contract defense accepted in appealable ruling

Issues

The Budapest Municipal Court on Friday partially accepted a contract defense by OTP Takarék, the home savings unit of OTP Group, however the ruling may be appealed, Hungarian news agency MTI reported. 

The court accepted the bank's argument on some points of its forint loan contracts while it rejected others. Under borrowers' relief legislation approved last year, lenders must refund clients for unilateral changes to contracts if they cannot successfully defend the practice in court.

A number of lenders previously defended such changes to foreign currency-denominated retail loan contracts, but none enjoyed a ruling fully in their favor. More than 20 lenders are now defending changes they made to forint loan contracts.

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