On Monday, the Municipal Court rejected appeals by two other major banks defending in similar cases unilateral changes they had made to forex loan contracts, which are seen as unfair under a recent supreme court decision.

K and H Bank and MKB had also asked the court to turn to Hungary’s top court and the European court, arguing that the law which serves as the basis for the trial was unconstitutional and violated the right to a fair procedure.

Under legislation approved in July, Hungarian lenders must compensate clients for unilateral changes to contracts unless they can successfully defend the practice in court. Hungary’s banks have filed a total 79 cases against the state to defend their position.

OTP Bank said it was resubmitting its lawsuit in defence of unilateral changes to loan contracts with changes. The cases of OTP Bank, OTP Mortgage Bank, OTP leasing unit Merkantil Bank and OTP Real Estate Leasing were rejected by the court on formal grounds.

OTP Bank, Hungary’s biggest retail lender, insists their lending activity has been in line with the relevant laws. The bank is also expected to turn to the Constitutional Court as it regards the law on compensating clients as unconstitutional.

Source www.hungarymatters.hu

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