Economy
Hungary c.bank fines 58 local credit institutions for unlawful services fee hikes
The NBH investigated 62 banks and credit institutions and after finding that most of them unlawfully hiked bank costs and customer fees, it imposed a fine of HUF 386.5 m on them, the bank announced on Monday.
The central bank conducted an investigation to determine whether banks were acting in compliance with consumer protection regulations when unilaterally raising fees, commissions and costs charged to consumers in the period between 1 January 2012 and 30 April 2014.
Each of the 62 banks and credit institutions investigated was found guilty of violating regulations. As a result, the NBH imposed fines on 58 and ordered four facilities to compensate customers.
The three biggest offenders fined the most heavily were Duna Savings Bank (HUF 25 m), Buda Regional Bank (HUF 22.5 m) and Dunakanyar Savings Co-operative (HUF 18 m).
In March, the central bank had imposed a HUF 1.2 billion (EUR 3.83 m) penalty on 35 larger banks accusing them of passing a large share of the extra tax burden levied by the government on the banking sector in 2013, on to clients. The NBH also levied a HUF 71.75 m penalty on an additional ten further banks for similar violations in July.
The banks were accused of failing to include a list of reasons for unilateral rise of fees in their contracts, and notifying customers less than two months before the increases took effect, as reported by the news agency.
In addition, the banks were found guilty of failing to inform customers of their right to opt out of the contract rather than paying the increased fee, and were directed to return the unlawfully collected funds to customers.
The central bank conducted an investigation to determine whether banks were acting in compliance with consumer protection regulations when unilaterally raising fees, commissions and costs charged to consumers in the period between 1 January 2012 and 30 April 2014.
Each of the 62 banks and credit institutions investigated was found guilty of violating regulations. As a result, the NBH imposed fines on 58 and ordered four facilities to compensate customers.
The three biggest offenders fined the most heavily were Duna Savings Bank (HUF 25 m), Buda Regional Bank (HUF 22.5 m) and Dunakanyar Savings Co-operative (HUF 18 m).
In March, the central bank had imposed a HUF 1.2 billion (EUR 3.83 m) penalty on 35 larger banks accusing them of passing a large share of the extra tax burden levied by the government on the banking sector in 2013, on to clients. The NBH also levied a HUF 71.75 m penalty on an additional ten further banks for similar violations in July.
The banks were accused of failing to include a list of reasons for unilateral rise of fees in their contracts, and notifying customers less than two months before the increases took effect, as reported by the news agency.
In addition, the banks were found guilty of failing to inform customers of their right to opt out of the contract rather than paying the increased fee, and were directed to return the unlawfully collected funds to customers.
