Foreign currency loans – Three actions dismissed, one postponed by court
Three financial institutions rejected their claims on foreign currency loans, in one case the decision was postponed by the Metropolitan Court on Friday.
Grammatically understandable but contain unclear term
The court justified the rejection of Pannon Good Finance Bank Zrt’s claim, because the plaintiff bank’s general terms and conditions (asf) are grammatically understandable but contain unclear terms. As an example, the Tribunal mentioned that some of the categories in the asf are too general.
Concerning the principle of symmetry, the judge emphasized that this meant that changes in favor of the consumer had to be taken into account – but the bank did not regulate this in the ASF. The court also dismissed Pannonhalma and Vidéke Savings Cooperative’s claim. In the statement of reasons, the tribunal explained that, in its opinion, even one of the seven principles listed in the law would suffice for rejection.
Explained that the court had nevertheless examined
The fairness of all the principles and found that the stipulations of the Asaphs employed by the applicant’s financial institution could not fully comply with any principle, in particular the principle of transparency. The court also dismissed the claim of the Rajka and Region Savings Cooperative. In his explanatory memorandum, the judge noted, inter alia, that in most cases proportionality was not covered by the contractual clauses of the applicant’s savings cooperative. He added that there was no guarantee for the consumer how much he could actually expect.
The Tribunal pointed out that there is no contractual provision for the principle of transparency to apply. In his view, a reference to the financial institution’s internal rules is not enough, because it cannot be enforced by the consumer. In the case of Good Credit Mortgage Credit Ltd., the court postponed the judgment of the first instance until 26 September.
At the hearing of the credit institution’s lawsuit
The plaintiff’s representative, in addition to the arguments put forward in the foreign currency loan litigation so far, argued that the defendant’s Hungarian lawyer had a counter-claim template. On the one hand, it is apparent from its date that it was completed before the defendant’s action could have been known to the defendant and, on the other hand, it contained statements of defense which the applicant had not submitted. A representative of the credit institution pointed out: Act 38 of 2014 on certain issues of foreign currency loan contracts. the personal scope does not extend to those who have been made redundant.
This would lead to a contradictory situation if the court dismissed the plaintiff’s claim. In this case, the same contractual clauses of the same credit institution would be considered fair to some consumers and unfair to other consumers. Dozens of financial institutions filed lawsuits against the Hungarian state after the adoption of the law on foreign currency loans. It is up to the court to decide whether the provisions of the financial institutions that allow unilateral contract modifications, such as increases in interest, costs or fees, in the general terms and conditions are fair.