Court rejects KDB Bank's defense of contract changes

Issues

The Municipal Court of Budapest rejected Korean-owned KDB Bank's defense of changes it made to borrowers' contracts in a ruling on Friday.

The judge said practically none of the lenders' contract conditions – spelled out in 50 pages of fine print – had met the legal requirements for transparency. Under borrowers' relief legislation approved in the summer, lenders must refund clients for making unilateral changes to loan contracts unless they can defend the practice in court.

KDB Bank is one of many lenders defending their contract changes in court. Of the some 50 rulings the court has made in the cases so far, just three have been in favour of banks – and those only partially. In three cases involving four lenders, the matter was referred to the Constitutional Court.

HUPX Joining Serbian, Slovenian Peers in Adex Power

HUPX Joining Serbian, Slovenian Peers in Adex

Moldovan Pensions to be Increased as of April 1 World

Moldovan Pensions to be Increased as of April 1

Schoenherr Names Miklós Klenanc as Head of Local M&A Practic... Appointments

Schoenherr Names Miklós Klenanc as Head of Local M&A Practic...

Hungarian Wine Marketing Agency to Host Summit Drinks

Hungarian Wine Marketing Agency to Host Summit

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.