Top court to hear complaints over bank refund law on Tuesday

Budapest, October 10 (MTI) – The Constitutional Court next Tuesday will start hearing four cases elevated by lower courts at the request of banks, contesting a supreme court ruling under which all unilaterally made changes to foreign currency loan agreements are seen as unfair.

The courts, three primary court and one appeals, turned to the top court to clarify whether the law violates the principle that legislation cannot be applied retroactively, the Constitutional Court’s general secretary, Botond Bitskey, told MTI on Friday. He added that the court had 90 days to pass decision in the cases now merged into one procedure.

Under the forex law, approved in the summer, lenders must refund clients for making unilateral changes to contracts unless they can successfully defend the practice in court.

Judges of the appellate court also thought that the forex law harms legal safety, the requirement that norms should be made clear, and unnecessarily curbs the appellant’s right to a fair procedure.

They argue it is “incomprehensible” that law is retroactive to May 2004, when the legislation was passed with reference to the financial crisis of 2008.

On October 2, Justice Minister Laszlo Trocsanyi said that appeals cases concerning banks’ defense of unilateral changes to contracts were expected to be completed by mid-November.

Photo: policity.blog.hu

Source: http://mtva.hu/hu/hungary-matters