Certain issues concerning contract amendments through legislation and court proceedings, with particular regard to foreign currency loan litigation

Abstract

Following the change of regime in Hungary, the legislature has, exceptionally, primarily on account of the enforcement of guarantees under the rule of law, used the tool of legislative amendment of contracts concluded between private legal entities in order to eliminate a major social problem, or at least to mitigate its adverse consequences. One such exception is the modification of foreign currency and foreign currency-based consumer mortgage loan agreements into forint-based consumer mortgage loan agreements as of February 1, 2015, which has been the legislative measure with the greatest financial impact in terms of both foreign currency borrowers and the relevant legislation enacted since 1990. This legislative act was preceded by the adoption of laws based on the Curia's PJE decision No. 2/2014. The aim of this study – after placing it in context – is to examine the extent to which the claims brought by consumers in lawsuits concerning foreign currency-based consumer loan agreements were aimed at modifying certain provisions of the agreements which resulted in consumer burdens, or even the entire contractual structure, and if so: what direction can be discerned in the application of the law in their adjudication, and if not: were there any legal or legal-dogmatic obstacles to the enforcement of such claims.