Romanian Constitutional Court Clears Consumer Loan Law

Opposition liberals challenged the law before the Constitutional Court Thursday saying the bill is drafted badly and said the Finance Ministry and consumer protection authority sent the Parliament contradictory stances on the bill.

The Parliament's lower house adopted the government emergency decree on consumer loans with 134 to 71 votes and 12 abstentions last Thursday.

The Chamber's budget and finance committee adopted Wednesday an additional report on the bill setting that loans underway are not to be affected by changes brought by the bill, except for early loan repayment fees that stay null and loan re-financing is to be negotiated between lender and borrower.

The European Commission sent Romania a letter requesting information on Emergency Ordinance 50/2010 on consumer lending, a preliminary move before triggering infringement procedures, Prime Minister Emil Boc said Wednesday.

In October, the European Commission sent local authorities a letter requesting clarification on the way a European directive is transposed into Romanian legislation through Emergency Ordinance 50, after receiving multiple complaints on the transposition of Directive 84/2008 into local legislation.

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