Foreign Currency Loans – Foreign Currency Loan Lawsuits Stopped in Line, Banks Not Received Yet

No lawsuit has been filed with financial institutions regarding the unfairness of unilateral contract changes in foreign currency-denominated contracts, the court’s press secretariat said. Meanwhile, extrajudicial suspensions of litigation between debtors and financial institutions in the country’s courts have begun.

For unilateral changes to credit agreements

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The Law on the Settlement of Certain Issues of the Mansion Court on Consumer Credit Contracts, published on Saturday, July 26, entered into force on Saturday, among other things, for unilateral changes to credit agreements, such as interest, cost or fee increases. it establishes a presumption that it is unfair and invalid. However, this presumption may be challenged by financial institutions and sought to be challenged in lawsuits filed against the State as a defendant in the Metropolitan Court.
In these cases, courts and parties also have only 30-30 days to file a lawsuit, to conduct first instance and second instance proceedings, so they must file a lawsuit with financial institutions that challenge the presumption by 25 August.

The Metropolitan Court at first instance and the Metropolitan Court of Appeal at second instance are expected to make their decisions in October, so it is expected that these procedures will be completed this year, subject to cure reviews. There are about four hundred financial institutions – potential claimants – in the country, and professionals expect one hundred and fifty such litigation.

After the law came into force on Saturday

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Monday was the first day in which such cases could be brought before the Metropolitan Court, but according to the court, this has not happened.
The law also stipulates that while pending unilateral contract amendment fraud cases, a total of about ten thousand individual cases brought by debtors against banks must be suspended nationwide.

They will resume once the final decision has been made in the bank-state litigation on the unfairness of unilateral contract changes.
The President of the Metropolitan General Court has previously ordered that suspensions be dealt with promptly and that those concerned be informed so that citizens can be informed of the state of their affairs as soon as possible.
According to a statement on birosag.hu, the court’s central website, the National Judicial Council decided on July 22 to suspend these cases nationwide.

The decision was necessitated by the exceptionally justified case

The decision was necessitated by the exceptionally justified case

That the legislature decided to enforce the unity decision of the Curia, and that the extraordinary order imposed by the decision applies to matters affecting a wide range of society. (According to the Bank of Hungary’s aggregate figures at the end of 2013, the population’s debt denominated in foreign currency was HUF 4.3 billion and its foreign currency credit institution indirectly affects 480,000 families and 1.5 million people). Extraordinary cases concern cases of overriding public interest because of their impact on the banking sector, which indirectly have an impact on society as a whole and on economic life, read the court website.

In Hajdú-Bihar county, the Debrecen General Court and its district courts suspended 285 foreign currency loan cases on Monday. The subject of ongoing lawsuits, in whole or in part, is the unlawfulness and unfairness of unilateral contract modifications or contractual provisions requiring the application of exchange rate margins – read on birosag.hu.
Claims on foreign currency loans can still be filed with the courts, but there are no pending litigation on new cases and they are also suspended (MTI)

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