At first instance, the Budapest Metropolitan Court dealt with seven foreign currency-denominated claims, while E-bank Bank Zrt. The second-instance trial began this week and, according to the ruling of the Metropolitan Court of Appeal, the first-instance ruling in favor of the Hungarian state, announced earlier, becomes final.
The series of second instance hearings
Began last Monday with the lawsuit of EvoBank Zrt., In which the Metropolitan Court of Appeal also appealed to the Constitutional Court (AB), so it suspended the hearing until the end of Ab’s proceedings.
The Judge-Rapporteur considers that the recently adopted Foreign Currency Credit Act is unconstitutional, including the point that a contractual clause is void if the financial institution has not instituted civil litigation within the statutory time limit or the court rejects the action or the lawsuit is terminated.
The first-instance judgment becomes final for Milton Credit Ltd., Retail Prod Service Ltd., Széchenyi István Credit Cooperative, Rajka and Vidéke Savings Cooperative, and Bóly and Vidéke Savings Cooperative, as the financial institutions have not appealed to the he agreed with certain points in the statement of reasons, for example, and withdrew his appeal.
In the case of K&H Bank, the court of appeal suspended the second-instance proceedings because it made several numbering errors in the Metropolitan Court’s first-instance judgment, which it must first correct.
Two other financial institutions
The contracts did not contain any rules on the amount of the increase, and the pricing principles were not made public to consumers, who could not know how and to what extent their charges would change.
Was heard by the Metropolitan Court, which postponed the lawsuits of the other two financial institutions and dismissed the other actions.
The Hungarian Banking Association again protested this week against “ex-post legislation that kicked off market rules and defamation of the sector” and suggested that the President of the Republic not sign the bill on consumer credit agreements but send it to the Constitutional Court for prior norm control.
According to the Banking Association
the need for norm control is also justified by the fact that there is a constitutional court proceeding on the initiative of the court, which is the basis of the Accounting Act, which was adopted in July, from which the Act is now inseparable.
According to the presumption in the Foreign Currency Credit Act passed this summer, the general terms and conditions that allowed unilateral modification of interest rates, costs and fees of financial institutions’ consumer loan agreements between 2004 and 2014 were unfair.
This presumption can be rebutted by financial institutions in litigation against the state if they prove that their general terms and conditions (asf) comply with the seven principles laid down by law. These include transparency, clarity, objectivity, proportionality, symmetry (MTI).