Foreign Currency Loans – Court Delayed in Good Finance Bank Lawsuit
The Metropolitan Court of Appeal, acting on second instance, postponed its ruling in a foreign currency-denominated lawsuit against UniCredit Bank Hungary Zrt.
Both the applicant financial institution and the defendant Hungarian State appealed against the first-instance decision that the bank’s general contractual terms (asf) did not meet the requirement of transparency and were therefore unfair.
Which states that credit card and overdraft contracts
The legal representative of the bank upheld his appeal and supplemented verbally with the entry into force of Act XL of 2014 amending the Foreign Currency Credit Act. Act, which states that credit card and overdraft contracts are not subject to the Act. “There is therefore room for the lawsuit to be terminated for some of the clauses at issue,” he said.
According to the defendant’s Hungarian legal representative, the new law does not apply to pending cases.
The recent amendment to the law, the primary purpose of the Accounting Act, was to prevent these two types of credit card and overdraft from being the subject of litigation in future forint-denominated issues.
First instance should not be affected by the amendment
Thus, cases already dealt with at first instance should not be affected by the amendment, as the legislator intended. The legal representative of the financial institution explained that Act XL of 2014 excludes the possibility of litigation in cases subject to the law.
This means that the applicant is, irrespective of the outcome of the Ab proceedings initiated in another case, precluded from any reopening, he added. According to the defendant’s Hungarian legal representative, the plaintiff is not deprived of the possibility of an extraordinary remedy, since review is permitted in the present proceedings.
He also indicated that if Ab decided to annul any provision of the XXXVIII Foreign Currency Credit Act 2014, the consequences and related measures would be open to the Court to deduct or take during the review process
The legal representative of the applicant financial institution
Also explained that the scope of the Accounting Act is also applicable to the present proceeding, since under the Legislative Act the amended provisions are applicable to procedural acts subsequent to the entry into force of the amendment. He considered that, since the appeal hearing had taken place after the entry into force of the relevant provisions, the case should therefore be terminated.