MNB Fines Cash4Car HUF 160 mln for Unlicensed Lending
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The National Bank of Hungary (MNB) has fined the local and Czech businesses of Cash4Car HUF 160 million for unlicensed lending activity, the central bank and financial market regulator said on Monday, according to a report by state news wire MTI.
Cash4Car bought vehicles from private individuals and businesses at or under market prices and signed repurchase agreements with the sellers who were allowed to use the cars in the interim period. Cash4Car charged the sellers a "holding fee" while it owned the vehicles.
MNB said it had established that Cash4Car was in the lending business, not the used car business, and had offered "several hundred million forints" of credit in over 300 instances.
MNB filed a report with the Metropolitan Prosecution Service on suspicion of criminal activity in the case.
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