Moldovan law prohibits the application of annual interest rate on loans exceeding 50% - NBM
This was reminded by the National Bank of Moldova (NBM) in its information materials, which it disseminates in partnership with Expert-Grup Independent Think Tank within the National Campaign of Financial Education of Citizens, informing them on various topics in the financial field. In its new publication on “Rational behavior in crediting (for individuals)”, the National Bank reminded that the rights of citizens, as beneficiaries of credit, are set forth in the Law on credit contracts with consumers. NBM emphasized that it is useful to remember the following important aspects: the law prohibits the application of an annual interest rate on credit exceeding 50%, while other related payments (commissions, fees, penalties, late payment interest and any other type of payment), except interest, for 1 credit day shall not exceed 0.04% of the total credit amount. The total value of the loan (including interest, commissions, fees, penalties, interest for delay and any other types of payment) may not exceed the amount listed under the relevant contract (except for real estate loans). In other words, if citizens took a loan for 10 thousand lei, they will repay a maximum of 20 thousand lei (including principal, interest and other payments) and no more. The National Bank emphasizes that citizens have the right to be informed before the conclusion of the contract about the actual annual interest rate and other essential conditions of the loan, have the right to terminate the loan agreement within 14 days from the moment of its conclusion, as well as for early repayment of the loan. “One should not hesitate to ask the bank for better terms. The conditions of the loan agreement are contractual, they are not prescribed, so it is worth discussing with the bank some provisions, such as interest rate, early repayment conditions or payment schedule,” NBM said. The authority responsible for the protection of consumer rights in the financial services sector is the National Financial Market Commission (CNPF). If the loan was granted and the client's rights were violated (for example, the non-banking credit organization still imposes fines and penalties, even if the loan amount has already been paid twice), the client can call the phone number indicated to the consumer on the CNPF website or submit an application. // 08.10.2024 - InfoMarket.
