Below is the Good Finance’s press release on controls and procedures related to early repayment. Banks have paid a total of 68 million fines (or more precisely …). This amount corresponds to approximately 4-5 bank customers’ prepaid loans. While I, as a credit intermediary, could not help my former clients with the final repayment process, many people told me about their bitter experience, which is why I believe that banks did not always justifiably reject a client’s loan application . Is the $ 68 million fine proportional?

Fixed rate early repayments

Fixed rate early repayments

“So far, the Good Finance has carried out nearly a hundred targeted investigations and procedures initiated following individual consumer protection submissions because of problems with fixed rate early repayments.

The Good Financial Supervisory Authority (Good Financial Supervisory Authority) has been closely monitoring compliance with the laws on fixed repayment at the fixed exchange rate since its entry into force in late September 2011 in order to protect consumer interests.

Analyzed the practices of financial institutions


Based on the consumers’ notices and submissions, the Good Finance launched targeted investigations and thematic investigations in order to detect and eliminate possible violations affecting a wide range of clients. In this context, the Authority regularly analyzed the practices of financial institutions and imposed measures and fines to prevent breaches affecting a wide range of consumers.

Since October last year, the Good Finance has been contacted by tens of thousands of consumers about the early repayment by letter, in person, by phone. As a result, the Good Finance has launched a targeted investigation into 19 cases of suspected bad practices affecting a wider range of consumers, and 67 additional inquiries into individual consumer issues.

Charge the costs related to the final repayment


The Good Finance’s early repayment audits included, among other things, the content of forms used by financial organizations; to apply the terms and conditions contained in the forms; to charge the costs related to the final repayment; issue a certificate of early repayment or a mortgage cancellation permit within the time limit; the practice of early repayment of foreign currency loans alongside foreign currency loans; to assess eligibility for the use of the preferential exchange rate, taking into account the rate applied at the time the loan is disbursed.

Submit a claim form for early repayment


Recently, the Good Finance has also launched a thematic inquiry into 6 institutions based on consumer feedback received. Many customers complained that their final repayment failed despite having met all the prerequisites, provided all the necessary proofs, and had the required collateral, even a forint loan successfully applied for from the same credit institution. However, at the very end of the early repayment process, financial institutions claimed that, at the time, the first step was not to submit a claim form for early repayment. A supervisory investigation on this topic is still ongoing.

The Good Finance has so far imposed more than HUF 68 million in consumer protection fines in the course of its inspections of closed-end fixed-rate repayments by financial institutions . ”