Foreign Currency Loans – The First 100,000 Customers Receive a Notice This Week

By the end of April, more than 1.7 million customer contracts will be sent by credit institutions for the settlement of foreign currency-denominated loans and forint-denominated mortgage loans.

About 237,000 contracts will be settled in March and another 1,465 million in April.
According to the MNB, for many tens of thousands of customers, the amount due in settlement is such that their loan agreement can be terminated.

Many clients may receive a short text message (sms)


About their financial settlement in advance, but the official notification is only the receipt of a written settlement notice, and 30 days from the date of receipt to submit a potential complaint.

According to data requested by market participants from the central bank, by April financial institutions will send and report client notifications on approximately 1,703 million customer contracts, whether live or terminated. This figure does not include the approximately 170,000 loans previously disbursed at a discount, for which settlement is not automatic and can be claimed by March 31.

According to non-finalized data


A total of 39 Hungarian financial institutions have to settle with at least one thousand clients, of which the largest providers are hundreds of thousands. In contrast, 61 financial institutions – mostly savings cooperatives – do not have to settle at all in the spring, as they did not have customers with foreign currency loans.

According to the announcement, the central bank continuously monitors and supports financial institutions in the implementation of the clearing process and therefore conducts consumer protection thematic investigations. The inquiries concern a total of 308 service providers (14 large banks, 20 small banks, 5 branches, 109 savings cooperatives, 88 debt managers, nearly 70 financial enterprises, 2 other institutions) and will continue until the end of 2016. In the case of financial institutions with the largest customer base, which cover more than 75 per cent of the affected consumers, the MNB already checks the settlement-forint preparation.

Pursuant to the Clearing and Settlement Act


Financial institutions will send their clients by April 30, 2015, notification letters containing amounts unduly taken out in foreign currency loans and other settlement information. Payment shall be made no later than 15 working days after dispatch.

In the case of terminated contracts, the bank account number must be reported after receipt of the letter of notification or the cashier’s bank transfer must be initiated. Loans denominated in HUF and effectively repaid in foreign currency will be settled between August and September 2015.

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