The statistical data shows that the number of consumers who filed an application with ABDRC in Q1 2022 (716 consumers) observed a more than 10% increase compared to the similar period of 2021 (644 consumers). If we are to relate to the cases concluded with resolutions, the results at the end of the reference period of this year are approximately 60% better than for the same period of last year, with both the number of applications received, and the number of conciliation cases formed going up.

During the first three months of 2022, as many as 133 consumers went through the entire conciliation process (application filing, negotiation, final resolution accepted by both parties), and 112 of them reached an amicable settlement directly with banks/NBFIs, having first approached ABDRC.

Compared to the same period of last year, we have noticed an increase in the number of cases concluded by resolution (successful negotiations assisted by the Centre’s conciliators): in fact, from 82 resolutions observed in the end of Q1 2021, we have reached 133 resolutions in the first three months of 2022 (an increased by 62% of this indicator).

In Q1 2022, ABDRC saw a record number of cases formed in only one week: 30 conciliation cases were formed in 17-21 January. Q1 2022 is also the quarter with the largest number of cases formed since the very establishment of the Centre. Again, in the first quarter of this year, ABDRC saw also a national premiere: the very first negotiation between a company/legal entity and a bank concluded with the parties reaching an agreement (this concerned a payment operation).

Furthermore, during the same period, 112 applications were settled amicably by traders after the respective cases were referred to ABDRC (traders negotiated directly with consumer), broken down as follows: 24 applications settled amicably with banks, and 88 applications settled amicably with NBFIs. The number of amicable settlements increased as compared to the reference period of last year (when 54 applications were amicably settled) by more than 200%.

Of the total number of compliant applications received by the end of the Q1 2022, 424 concerned different issues in relations with banks, whereas 292 concerned different issues in relations with NBFIs.

In the end of the Q1 of this year, we counted approximately 671 enquiries made by phone, and 59 persons/consumers access the chat function on the ABDRC website.

The break-down of applications on banks/NBFIs is as follows:

Banks:

• 424 compliant applications;
• 276 requests for miscellaneous information;
• 7 non-compliant applications.

Classification of the 424 compliant applications concerning banks:

• 181 cases formed in the end of Q1 2022 (10 cases formed/2022 from applications received in late 2021);
• 49 applications in the screening phase – documents are being reviewed;
• 24 applications were settled amicably by the parties, but this after the consumer having first referred the case to ABDRC (of which, 5 concerned deregistration of entries from the Credit Register);
• 180 applications were closed (of which, 63 concerned deregistration of entries from the Credit Register).

Classification of the 181 cases undergoing the procedure with proposed solution/conciliation (at the end of Q1 2022):

• 133 resolutions rendered – the parties reached an agreement;
• 36 cases in the phase of discussions with the parties;
• 7 preliminary cases;
• 1 case – withdrawal of a party from the procedure;
• 4 reports – the parties failed to reach an agreement.

Means of submitting compliant applications:

• 240 were submitted via the app (website);
• 164 were emailed;
• 8 were mailed;
• 12 were brought to, and registered by consumers with the office of ABDRC.

NBFIs:

• 292 compliant applications.

Classification of the 292 compliant applications:

• no case formed at the end of Q1 2022;
• 83 applications in the screening phase – documents are being reviewed;
• 88 applications were settled amicably between the NBFI and the consumer, but this after the consumer having first referred the case to ABDRC (of which, 52 concerned deregistration of entries from the Credit Register);
• 121 applications were closed – refused by NBFIs (of which, 116 concerned deregistration of entries from the Credit Register).

Means of submitting compliant applications:

• 255 were submitted via the app (website);
• 34 were filed by email;
• 2 were mailed;
• 1 was brought to and registered by the consumer with the office of ABDRC.

The applications received from consumers covered the following topics:

• Problems in connection with credit products:

• • Credit Office (deregistration from CO);
  • Refunds (of fees/commissions, interest);
  • Reduction of loan principal/debt/instalment, or writing off overdue amounts;
  • Rescheduling/refinancing/staging-out;
  • Agreement renegotiation/rebalancing (including for hardship);
  • Finding a solution to address the problems (in general);
  • Finding a solution to address the problems generated by the pandemic;
  • Conversion of the loan currency;
  • Problems with insurance policies (bancassurance);
  • Interest recalculation;
  • Payment commitments;
  • Maturity acceleration;
  • Removal of certain clauses.

• Operational problems:

• • Problems with operation of the ATMs (including refunds);
  • Problems in connection with wire transfers and refunds of transaction fees;
  • Refunds in case of processing errors;
  • Recovery of amount wrongly transferred by consumers (internet banking);
  • Provision of clarifications about calculation of the amounts withdrawn by banks from the credit card account;
  • Other card-related problems (cancellation/name change);
  • Problems in connection with the exchange rate and interests charged when using the cards abroad;
  • Problems regarding inter-banking transfers.

• Problems related to other types of activities:

• • Problems in connection with forced execution (suspensions/stays of proceedings);
  • Requests to be issued documents (repayment schedules, statement of account, etc.);
  • Repayment of garnished amounts;
  • Mortgage deregistration.

The main reason for closing an application is the refusal of traders to have the dispute settle via ADR procedure, and the reasons for closing fall into several categories:

• Good reasons (main) – the application concerns:
  • deregistration of entries from the Credit Office;
  • “First House” loans;
  • assigned claims;
  • the state premium under saving-credit contracts.

• Reasons related to consumers:
  • selection of a trader the business of which is not regulated by the National Bank of Romania;
  • selection of a trader they don’t have commercial relations with;
  • the information/documents required for resolving the application have not been supplied;
  • the consumer does not reply within 90 days;
  • there is no insurance;
  • the consumer withdraws.

• Other reasons:
  • pending court proceedings;
  • forced execution procedures have already been initiated;
  • traders made several offers, but all of them were turned down by consumers (before approaching ABDRC), and traders maintain their point of view in the initial answer sent to consumers;
  • lack of grounds (claimed by the trader).

NOTE:

The statistical data shows that the number of consumers who filed an application with ABDRC in Q1 2022 (716 consumers) observed a more than 10% increase compared to the similar period of 2021 (644 consumers). If we are to relate to the cases concluded with resolutions, the results at the end of the reference period of this year are approximately 60% better than for the same period of last year, with both the number of applications received, and the number of conciliation cases formed going up. This increase is shown in both the number of cases effectively resolved and concluded with a resolution / the parties reaching an agreement (thanks to the higher processing speed and the increased willingness of the parties to negotiate), and the number of applications amicably settled by the parties (having first referred the matters concerned to ABDRC).

CONCLUSIONS:

The ABDRC services continue to be accessed by the Romanians who have problems with banks/NBFIs. The benefits of conciliation: the court proceedings avoided and the continued contractual relations between parties, the short case settlement time (less than 90 days), the procedure is free of charge for consumers, and the expertise of conciliators are important benefits for both consumers and the financial and banking institutions involved in these negotiations, particularly during economically difficult times (the effects of the pandemic continue to be felt). In this context, the conclusions drawn for the first three months of the year 2022 are as follows:

• In Q1 2022, ABDRC saw a record number of cases formed in only one wee (30 conciliation cases were formed in 17-21 January); Q1 2022 is the second quarter with the largest number of cases formed over the 6 years of operation of the Centre.
• Again, in the first quarter, ABDRC saw also a national premiere: the very first negotiation between a company/legal entity and a bank concluded with the parties reaching an agreement (this concerned a payment operation).
• In January 2022, ABDRC updated the profile of the consumer of financial services applying for negotiation with a bank or NBFI. This is a man of Bucharest, aged between 41 and 50 years, with a personal loan in RON, who asks the bank to reduce their lending costs. The benefits obtained from negotiation are significantly higher than in the year before the sanitary crisis. While the average amount of the benefits obtained from a negotiation used to be approx. EUR 2,500 in 2019, this year it went above EUR 4,300.

• The average time required to complete a negotiation between a consumer and a bank via the Centre dropped to 33 days in 2021. In fact, conciliators now address the problems reported by consumers 40% faster than in the previous years.

• The more experience the conciliators acquire in the Centre, the more efficient they are in the conciliation process. In March 2022, three of the 19 conciliators exceeded the number of 200 negotiations in ABDRC.
• The financial education projects continued also in Q1 2022: the website csalb.ro now features a financial education section which will be regularly updated with new information for consumers.
• In Q1 2022, ABDRC further simplified the call-centre waiting call, and added new information for the consumers filing for conciliation with banks/NBFIs on the website.
• In the first quarter of 2022, ABDRC held our annual press conference, and distributed press releases about our work, some in partnership with other entities.

The WEBSITE www.csalb.ro makes available also for legal entities an online tool, which allows for faster and smoother submission of the conciliation applications. On the first page of the website, consumers are prompted to access this application by filling in an application. The documents entered in the registration form are uploaded into the app, and their processing time is approximately one hour. The application was setup in observance of the principles of the General Data Protection Regulation (GDPR).

The Alternative Banking Dispute Resolution Centre (ABDRC) is an independent non-governmental, apolitical, and not-for-profit legal entity of public interest established under the Government Ordinance no. 38/2015 on alternative resolution of disputes between consumers and traders, which transposes at domestic level Directive 2013/11/EU on alternative dispute resolution for consumer disputes and amending Regulation (EC) no. 2006/2004 and Directive 2009/22/EC.