Consumer watchdog: No more loan fee changes starting 2009

Variable loan interest rates will only be modified depending on transparent indicators, whilst banks will only be allowed to change loan fees or other costs with the customers’ clear consent, stipulates an emergency ordinance, passed by the government yesterday, which will most likely come into effect in January. “These regulations will come into effect 30 days after they have been published in the Official Gazette, which means, as promised, that starting January 2009 there will be much clearer, transparent and simpler rules concerning the relationship between customers and banking or non-banking financial institutions,” stated Dan Vlaicu, chairman of the National Consumer Protection Authority (ANPC), the institution that initiated the project for this rule. Vlaicu explained ANPC would take control over laws on consumer and mortgage loans from the NBR. In the case of variable interest rates, the ordinance stipulates they will be calculated depending on market benchmark indices, irrespective of banks’ rules and the actual formula will be presented in the loan contract. In fact, the NBR in October introduced new stipulations on the way ROBID/ROBOR indicators are calculated, which regulate situations of market failure. These allow the NBR to cap indicators at certain levels in the case of strong interest rate increases.