As soon as possible a court uniformity decision on foreign currency debtors’ contracts is required
He called for a legal unity ruling on foreign currency debtors’ contracts at a press conference of Christian Democrat András Aradski at a press conference in Budapest on Wednesday.
According to the pro-government politician
When formulating this, it is necessary to consider whether the fees and interest charges calculated by the credit institutions and covered by the right of unilateral amendment of the contract are fair. National courts have room for maneuver in this area, he pointed out.
András Aradszki based his opinion on the EU Consumer Protection Directive and court rulings. The former fall within the material scope of consumer protection contracts relating to foreign currency debtors.
The entry into force of the directive in the case-law of the European Court of Justice does not go back much, but several judgments have been delivered.
As part of the judgments
General EU standards have been defined which help national courts to determine whether contract terms are unfair. According to the KDNP politician, the national court may investigate the unfairness of a contractual term even if the claim is not covered. They also stated that it was not only their right, but also their duty, to investigate unfair contract terms, he noted.
They also found it contrary to national case-law, which prevents judges from examining unfair contract terms and conditions.
According to him, in Hungarian procedural law such a risk is in the order for payment procedure, he said.
He commented that, under the terms of foreign currency loan contracts, in many cases, it gives the financial institution a call option on the collateral property if the debtor does not pay the debt.
This is one of the most unfair terms
Recalled that the Curia’s civil college had made an important decision at the end of last year to amend the unilateral contract, but that all conditions had to be checked for fairness.
The pro-government politician stressed that any further steps would require a unity resolution, which could justify the legislative steps that foreign currency debtors are rightly expecting.
He emphasized that according to the experience so far, it has become difficult to develop a unified practice in the evaluation of foreign currency loan contracts, and basically a favorable legal interpretation has become common for banks and financial institutions.
He also said that the appearance of retrospective legislation should be avoided, but that all actors in the state should be involved in remedying the situation, while maintaining their independence.