Local lender Alpha Bank Romania has lost a lawsuit with the National Authority for Consumer Protection (ANPC) related to unfair clauses included in lending contracts concluded before 2010, reports local Profit.ro.

The bank must remove those clauses, which mainly target how the interest rates and additional fees are calculated, from all the consumer loan contracts concluded before 2010.

The Court of Appeal rejected Alpha Bank’s appeal and the decision is final so it will lead to amendments in all the contracts with such provisions.

ANPC started the lawsuit against the bank in 2013, when the law on unfair terms in lending contracts was amended in favor of consumers. The Bucharest Court established in November 2015 that Alpha Bank used an illegal clause on the variation of the interest rate in certain contracts.

The bank decided that for the loan contracts concluded before 2010 the interest rate would be calculated based on an internal reference, which the bank could amend anytime, plus a fixed margin. The interest varied based on the bank’s lending policies or the market conditions, according to a clause that has been now removed.

editor@romania-insider.com