The cost of nonbank loans consisting of interest rates, commissions, taxes, penalties and delay interest could be capped. The Parliament’s commission on economy, budget and finance on April 8 approved the report on the amendment of the law on nonbank lending organizations. The legislative proposal was formulated following complaints from people who raised consumer loans from nonbank lending organizations, IPN reports.
It is proposed that the maximum limit on the payments related to a contract for the provision of a loan or financial leasing to a private individual should not exceed ½ of the loan for a period of two years. Bill author Alexandru Slusari, PPPPDA MP, said the portfolio of loans offered by nonbank entities to private individuals in 2018 came to 7.2 million lei, while in 2019 to 8.3 billion lei. This shows that the consumption necessities that are not covered by current incomes, primarily the salary ones, increase and the level of the population’s profound poverty also increases.
According to Alexandru Slusari, the implementation of these changes will reduce the risks of private individuals seeing their property confiscated following the uncontrolled rise in interest, commissions, taxes, penalties. Also, the enrichment of nonbank lending organizations on account of the population’s poverty will be avoided and the costs of small loans will be reduced so as to maintain demand for consumer products and popular goods, such as domestic appliances, furniture and equipment.
