Consumer protection authority forces bankers to modify almost all credit contracts by September

Banks could be forced to modify most credit contracts sealed by individuals by September, according to a draft emergency ordinance published by the National Authority for Consumer Protection (ANPC).

The ordinance transposes into Romanian legislation a directive of the European Commission whereby banks have to limit the commission on early repayment for consumer loans with a floating interest rate to 1% of the outstanding sum and use a single model for calculating the annual percentage rate.

The new regulations will come into force in June, with the modification of ongoing credit contracts through additional documents to occur within 90 days. Bankers say the retroactive enforcement of the EU directive is unfeasible considering the large number of contracts that would have to be modified.

The ANPC project extends beyond the EU legislation, and also targets a cap on the commission on early repayment for collateral-backed real estate loans, as well as for leasing contracts.