The lending institutions will be obliged to post the annual effective interest rate (DAE), plus all the related commissions, with characters that will be three times larger than other information mentioned in advertisements, as a bill approved by the Cabinet stipulates, IPN reports.
“The goal of the legislative proposal is to enhance the protection of consumers who raise loans, contributing this way to increasing the banking sector’s safety and consumers’ confidence in the financial sector,” said Minister of Finance Dumitru Budianschi.
One more provision of the bill says the bank will be obliged to electronically notify the client if the interest rate applied by the bank on new loans is decreased so that the beneficiary could renegotiate the loan agreement depending on the fluctuations in the average interest rate in the banking sector.
The bill also imposes minimum responsible lending standards by banning the use of floating interest rates in the case of loans lower than three average official salaries.
