Romania’s consumer protection body insists banks should change loan instalments formula

Romania’s consumer protection body ANPC is of the opinion, enforced by an order and fines levied against the banks it inspected so far, that all the commercial banks in the country should change the loan repayment formula such as to introduce linear repayment of principal.

The rather awkward and possibly illegal requirement would be aimed at establishing some level playing field between banks and their customers.

New loans should be issued only with this new formula, which results in higher instalments at the beginning of the repayment period and severely diminishes borrowers’ capacity, Profit.ro reported.

The repayment schedule for the existing loans should be revised according to the formula imposed by ANPC, and the consumer protection body makes the banks responsible for finding solutions, such as not to push their customers above the legal indebtedness threshold.

All rulings of ANPC can be challenged in court, and the court can also suspend their effects until a final judgment is issued.

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