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EXCLUSIVE: EC Asks Romanian Authorities To Explain Ordinance On Consumer Loans, After Complaints

The European Commission is asking Romanian authorities for an explanation, after it received complaints regarding the transposition of Directive 84/2008 into Romanian legislation through Emergency Ordinance 50/2010, which requires banks to ensure transparency for current loan contracts.
EXCLUSIVE: EC Asks Romanian Authorities To Explain Ordinance On Consumer Loans, After Complaints
Paula Rusanu
06 oct. 2010, 19:54, English

In a letter signed by Paola Testori Coggi, director-general of the Directorate-General for Health and Consumer, and addressed to Mihnea Motoc, Romania’s ambassador to the European Union, the EC says it has received a number of complaints, according to which Romania has improperly transposed the provisions of Directive 2008/48/EC on credit agreements for consumers and repealing Council Directive 87/102/EEC.

The letter says Directive 48/2008 has been transposed through Government Emergency Ordinance 50/2010, with article 95 stating „in the case of current contracts, creditors are required (…) to ensure the contract’s compliance with the provisions of the present emergency ordinance.” The EC says this article is contrary to article 30 section (1) of Directive 48/2008, which says „this Directive shall not apply to credit agreements existing on the date when the national implementing measures enter into force.”

The Commission asks Romanian authorities to issue a position on the agreement of article 95 of Government Emergency Ordinance 50/2010 with article 30(1) of Directive 48/2008 within one month of the letter (dated September 30).

The document also says the Commission has been informed about a number of pending cases in Romanian courts on the legality of certain commissions charged by national banks when granting consumer loans. The EC asks Romanian authorities for further information on this issue as well.

In June, the Government approved Emergency Ordinance 50/2010 regarding consumer loans, based on a document drafted by the country’s consumer protection authority ANPC. The ordinance eliminates early repayment fees for loans with variable interests and introduces a new calculation method for interests, based on a transparent reference index plus a fixed percentage, which cannot be modified throughout the duration of the contract.

Romanian lenders requested the Government amend the ordinance so that the measures will not be applied retroactively.