Uncertainty Regarding Liquidated Car Loans Skip to content

Uncertainty Regarding Liquidated Car Loans

By Iceland Review

It is not certain how car loan company Lýsing intends to deal with liquidated car loan contracts following the ruling of the Supreme Court that the indexing of car loans is illegal, CEO of the company Halldór Jörgensson told ruv.is today. He says that Lýsing will abide by the country’s law.

Photo by Páll Stefánsson.

Today Jörgensson will meet with company employees to inform them as to what the next possible steps may be. He says that it is important to coordinate the response of the car loan companies and prevent them from returning to court. Therefore, a meeting with the Iceland Financial Services Association is also on today’s schedule.

Jörgensson is amazed by the fact that for the many years car loan contracts have been on offer and taken to court when a client defaulted, the question as to whether they were lawful never arose.

The Central Bank and the Financial Supervisory Authority never criticized the contracts even though the companies had sold foreign currency against them throughout the years. Jörgensson did not answer the question of whether they are considering suing the government on these grounds.

According to him, now it is crucial to find a settlement acceptable to everyone but says that it is unclear what will happen to the contracts that have already been liquidated.

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