Banca Transilvania, OTP Bank, and Exim Banca Romaneasca won in court against the consumer protection body ANPC on the loan repayment formula, bringing to five the number of financial institutions that invalidated ANPC’s decisions, Profit.ro reported. 

The court rejected only the invalidation request filed by ProCredit Bank, which, however, appealed the ruling already.

The consumer protection agency fined 19 banks for the loan repayment formula used in their contracts.

Specifically, ANPC claims that banks’ practice of equal monthly payments with the monthly installment revised in line with the benchmark rates calculated by the National Bank of Romania (BNR), a standard practice in the banking industry, would be misleading. The body instructed banks to use a formula that would result in equal monthly repayment of the principal. 

Such contracts are possible in principle, and banks would probably accept them, but they would significantly diminish the indebted capacity of banks’ customers. 

iulian@romania-insider.com

(Photo source: Inquam Photos/George Calin)