Budapest Court Rejects Lender’s Defence Of Contract Changes
- 3 Sep 2014 9:00 AM
The Municipal Court of Budapest rejected EvoBank’s defence of unilateral changes it made to loan contracts in a ruling on Tuesday. The court said the lender’s general contract conditions did not meet transparency requirements. Retail borrowers could not ascertain whether their increased costs were fair, and they could take no steps against the lender if changed circumstances affected them unfavourably, the court explained.
The counsel for the bank said the decision was not unexpected and could not respond to whether EvoBank would appeal.
Under legislation approved in the summer, Hungarian banks must compensate borrowers for unilateral changes made to loan contracts unless they can successfully defend the practice in court.
Source www.hungarymatters.hu
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