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Bucharest
September 29, 2022
BUSINESS

Banks, forced to reduce early reimbursement commission

A new emergency ordinance on consumer loan contracts, which stipulates, among other provisions, hedging the early reimbursement commission at maximum 1 per cent, came into force yesterday, June 21. Thus, the legal stipulations are applied to all newly-signed credit contracts, while running contracts will be modified by credit institutions in maximum 90 days. The modification of running contracts will be made by additional acts, according to the emergency ordinance. The ordinance applies, equally, to leasing contracts which have an explicit provision for the transfer of ownership rights. In the case of such contracts, provisions referring to the early reimbursement commission start to apply 12 months after the signing of the contract. Radu Ghetea, chairman of the Romanian Banks’ Association, stated, for HotNews.ro, that Romanian banks will implement all provisions included in the law. BCR aligned, as of Monday, its commissions on credits. Thus, according to a press release, BCR set the early reimbursement commission on fixed interest loans for the public at the maximum legal level, of 1 per cent of the remaining loan, if the remaining term for reimbursement exceeds one year, and at 0.5 per cent, if the remaining interval is below 12 months.

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