On Aug. 12, ROM PRL issued law on non-banking financial institutions.
ROM PRL issued law 243/2024 on consumer protection regarding the total cost of lending and assignment of receivables, in force day 90 days after official publication.
Application
Applies to legal relationships between consumers, non-banking financial institutions (NBFIs) that grant loans according to Law 93/2009 regarding non-banking financial institutions and entities that carry out the activity of debt recovery.
Establishes consumer protection rules against excessive interest in order to maintain contractual balance and ensure the integrity of the internal financial-banking market.
Interest Rates
APR on mortgages cannot exceed 8% interest on the lending facility set by ROM CB.
Re consumer loans, DAE cannot exceed 27% interest on the lending set by ROM CB.
However, provisions set out exceptions to the 27% on DAE depending on loan amount.
Consumer's are given the power to request ADR through a consumer association.
Also the power to request a review of the contract where the limits are exceeded.
Refusal of revision of the contract or a delay of over 45 days in response will allow the consumer to ask the competent court for a judicial adjustment of the contract.
Unfair Practices
The Act sets out unfair commercial practices penalized according to Law 363/2007.
These are: stipulation/use of excessive interest or clauses regarding the total amount payable by the consumer that causes the maximum cost ceilings to be exceeded.
Stipulation/use of interest penalties exceeding total amount of the loan or credit.
Stipulation/use of interest on amounts that contain interest or the concealment of interest and charges in bad faith under other names of costs or under stipulations intended to regulate other aspects of the relationship legal disputes with consumers.
Commission, fees, premiums of the credit, with intention of hiding excessive interest.
Effectiveness
In force Nov. 11, 2024, which is 90 days after date of official publication.
