The Good Finance Group and its members – Good Finance Bank, Good Finance Mortgage Bank, Honest Bank and Good Finance Apartment Savings – will exercise their right to sue under the Foreign Currency Loan Act to presume the unfairness of their credit agreements and contemplate turning to the Constitutional Court for the law. on Wednesday with GFI.
Credit agreement and modification practices
The statement emphasizes that the Good Finance Group maintains its position that its credit agreement and modification practices have always been in compliance with current legal requirements. This has also been continuously reviewed by the Financial Supervisory Authority and found to be adequate.
Foreign currency loan agreements
According to the bank’s announcement to GFI, the terms laid down or rebuttable in the current legislation, the Law on Settlement of Certain Issues in the Court of Justice’s Resolution on the Consolidation of Consumer Loans by Financial Institutions, are based on new expectations unknown at the time of foreign currency loan agreements.
That is why they wish to make use of the opportunity afforded by them to challenge in court the presumption of ‘unfairness’ in unilateral contract modification clauses.
Pay a rebate on the exchange rate margin
According to an earlier announcement by the bank, the Good Finance Group is expected to pay a rebate on the exchange rate margin of about HUF 27 billion. Taking into account the risk cost incurred for this purpose in 2013, the negative profit before tax could amount to approximately HUF 25 billion, which will be accounted for in Q2 2014. This amount is about $ 20 billion higher than their previous expectation due to statute of limitations rules that were introduced into the law shortly before adoption.
According to Good Finance, lawsuits involving a unilateral contract modification clause could affect nearly HUF 90 billion in foreign currency loans and an additional HUF 20-30 billion in HUF mortgages and consumer loans. The approved version of the law increased the amount they expected by $ 40 billion, the bank announced in early July.