Hungarian Banks Required To Prove Fairness Of FX Contracts
- 31 Jul 2014 11:00 AM
From now on banks will be required to prove that their procedures in forex lending have been straightforward, under a law which took effect last Saturday. Lawsuits initiated by borrowers against their banks before the supreme court passed its decision of legal unity have been suspended.
The Kúria’s ruling relieved clients of their obligation to prove that their banks have been unfair, and transferred the obligation to prove otherwise to the lender.
Deputy head of the National Judicial Office Judit Gyarmathy told public television that under the new law it is assumed that clauses in a contract allowing unilateral changes by banks are unfair, and thus void.
Banks challenging that assumption may sue the Hungarian state and prove otherwise, she said, adding that such cases would be heard within a short 30 days.
No banks have filed such suits as yet, but up to 150 cases could be expected, the official added.
Source www.hungarymatters.hu
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