The Romanian government has taken a significant step by passing a new emergency ordinanceaimed at regulating how certain types of loans are handled, particularly those that aren’t being paid back on time, known as non-performing loans. This move is designed to bring Romania’s practices in line with European standards and to ensure that those in debt are treated fairly.
The ordinance introduces rules for credit administrators and buyers. These are entities or companies involved with non-performing loans, either by buying these debts or managing them. The goal is to standardize operations across the EU and to safeguard consumers.
Romania is aligning its regulations with the rest of Europe, fostering consistency and reliability in managing non-performing loans. At its heart, this ordinance is about protecting consumers by ensuring they are treated fairly and respectfully by credit administrators and buyers.
Key Changes Introduced
Authorization Requirement:Credit administrators in Romania now need to get authorization from the National Authority for Consumer Protection (ANPC) to operate. This includes those based in Romania and other EU member states looking to work within the country.
Rules for Fair Conduct: The ordinance outlines how credit buyers and administrators should interact with debtors:
- They must deal honestly and not deceive or harass debtors.
- Debtors should receive straightforward information about their debts and rights.
- Personal information must be handled securely and respectfully.
Public List: The ANPC will keep a public list of all authorized credit administrators, enhancing transparency and accountability.
This regulation represents a significant step toward improving how financial institutions manage loans that are in trouble, making the system more transparent and consumer-friendly. It encourages a culture of respect and fairness in the financial sector, ensuring that those in debt are given a fair chance.
