ANPC sanctioned eight other Romanian banks, including CEC Bank and Eximbank

The National Authority for Consumer Protection (ANPC) has completed checks on eight other economic and financial banking operators operating on the territory of Romania, to whom it imposed fines in the amount of 400,000 lei, the institution informs in a press release.

“As part of its market surveillance activity, the National Authority for Consumer Protection (ANPC) continued the series of checks on how banks implement medium and long-term credit contracts, with a repayment period of over 10 years, to the consumer-individual, in lei or foreign currency, as well as if the elements provided in the contractual conditions respect the rights of consumers“, the press release states

ANPC identified contraventions at those 8 banks, i.e. deceptive commercial practices committed by them regarding the method of calculating the rates, by the fact that, on the repayment schedule, the rate was composed, in the first years, of 25% of principal balance to be repaid and 75% interest. Through this method of calculation, consumers were, in fact, paying mostly interest, the quoted source emphasizes.

“As I said before, the action will continue. Eight more banks were sanctioned for what our Authority considers an unfair relationship between them and consumers. As I have already shown, today there are dramatic situations in the lives of those who at one point and – they took a loan” said Horia Constantinescu, ANPC president.

According to him, “the financial burden cannot hide behind apparent mathematical justifications.”

“If 1 + 1 is a very correct operation, the same addition can represent an enormous minus in the life of some families. The seemingly small percentages are also behind sales of non-performing loans to debt collectors. But even so, the “only” 2% represent a significant number of consumers unable to pay their installments and lead a decent life. If a degree of tolerance as calculated for some, without even being called to a dialogue, I think it is time for the whole situation to be reevaluated. I shudder to see the insensitivity of those who deny reality today”, says Constantinescu.

The eight sanctioned banks are Exim Bank, Procredit Bank, Intesa Sanpaolo, Techventures Bank (formerly Banca Comercială Feroviară), Libra Bank, CEC Bank, Garanti Bank and Vista Bank.

In order to be able to restore the contractual balance, in addition to the contraventional sanction, i.e. eight fines worth 400,000 lei, the ANPC commissioners proposed the measure of issuing new repayment schedules, both for ongoing and future loans, where the principal the credit owed to be paid by consumers in equal installments, over the entire crediting period, in relation to the interest related to the credit.