Banks cling on to early repayment commissions

Banks are opposed to the proposal of the National Authority
for Consumer Protection (ANPC) for provisions of the new law of
credits, which will come into force on June 12th, to be applied to
existing clients, as well. The proposal entails the modification of
more than 7 million credit contracts worth 25 billion euros.
The draft law on loans granted to the population, put together
by the ANPC and currently subject to public debate, is largely
based on the European directive on consumer loans, which needs to
be translated into local legislation by June 2010.
ANPC, however, wants to have, under the new credit law, the
capping of the early repayment commission to 1% extended to all
types of loans, not only consumer loans, and also wants it applied
both to new clients, and to those with existing loans.
“We have also included other provisions in the draft law, in
addition to those provided for in the European directive. One of
the new elements is that the law be applied to all existing lending
contracts, which are around 7 million. This provision has generated
dissatisfaction among banks, which argue that one cannot be more
Catholic than the Pope!,” said Constantin Cerbulescu, chairman of
the ANPC at a debate organised on the World Consumer Rights Day.

On the other side of the argument, bankers say the law cannot
be enforced retroactively.