Romania’s Government will promote the European directive on mortgage loans through an emergency ordinance, because the deadline for adopting it into the national law has already passed.

The ordinance brings more protection for the banks’ clients and tougher rules for debt collectors, reports local Economica.net.

The banks will be able to initiate the enforcement proceedings only at least three months after a credit has been declared due. The customer needs to receive a notification at least 30 days before the enforcement proceedings are initiated. He needs to be informed about his rights in this situation.

The consumer can also ask for the right to directly sell his mortgaged asset within six months. The lenders will be forbidden to transfer loan contracts to companies that are not registered in Romania.

The debt collectors will also have to follow stricter rules. They won’t be allowed to charge interest and other fees, except for the legal penalty interest. The ordinance also prevents collecting firms from using aggressive techniques in the debt recovery process.

editor@romania-insider.com