New Law On Early Loan Repayment Fees To Increase Romanian Bank Competition – Watchdog

„The Competition Council supports the proposals to amend legislation concerning this field. Despite the Romanian Banking Association’s reservations, I think we will come to an understanding and everyone involved will be reasonable,” Chiritoiu said.

Banks have until September to amend most lending contracts to comply with new European Union rules and may not charge fees for the early repayment of loans with variable interest rates.

Starting with the second half of the year, natural persons will be able to repay mortgage and consumer loans with variable interest without additional fees, according to a draft emergency ordinance developed by the National Authority for Consumer Protection. The ordinance implements Directive 2008/48/EC of the European Parliament and of the Council, which will become mandatory for all member states on June 11.

Banks will be allowed to charge up to 0.5%, or 1%, of the remaining debt on the early repayment of fixed-interest loans maturing in under a year, and more than a year, respectively.

The draft ordinance will apply to all loan contracts, including mortgage, real estate and leasing contracts, regardless of the loan’s value. The ordinance will also regulate the information provided to consumers before signing the contract, such as fees and offers from other EU member states. Furthermore, consumers will have the right to withdraw from the contract, no questions asked, within 14 days of signing.