The number of casefiles formed at the end of Q3 2024 reached 825. Only one negotiation file concerning NBFIs was formed, while all the others involved banks. By way of comparison, 575 casefiles were formed in the first nine months of 2023, which means an increase by 43% in the current year. Of the casefiles formed this year and settled until the end of the reference period, 721 concluded with a resolution (the parties accepted the solution proposed by the conciliator). This year, the reported number of resolutions is 721, compared to the similar period of the previous year, when only 475 resolutions were reported (an increase by 52% this year).

The number of applications received in the first nine months of the year (2,839 applications) shows an increase in the current year by approximately 29% compared to Q3 2023 (2,209 applications). The ongoing upward trend of the ROBOR and IRCC indices, on the basis of which the monthly instalments to be paid on variable-rate loans are calculated, created a context in which some consumers have continued to experience real payment difficulties, and these justified circumstances meant that solutions to rebalance contractual obligations had to be found (with requests sent directly to creditors or filed via ABDRC).

Of the total number of applications received before the end of Q3 2024, 2,084 concerned different issues in relation with banks, whereas 755 concerned different issues in relation with NBFIs.

Thus, the share of applications to NBFIs fell slightly below last year’s reference period: from 36% of total/Q3 2023 down to 27% of total/Q3 2024.

Moreover, the share of applications intended at banks observes a slight increase in the two periods subject to comparison: 64% of the total/at the end of Q3 2023, and 73% of the total/Q3 2024.

In this statistical slot, we need to highlight also that, in the first nine months of this year, the number applications for deregistration from the Credit Register (CR) increased compared to last year.

At the end of Q3 2024, we see 803 applications for deregistration from the CR (292 intended at banks + 511 intended at NBFIs), while the number of this type of application recorded at the end of Q3 2023 was 949. It should be reminded that most of the applications concerning issues in relation to the Credit Office, the First House programme or assigned loans are closed because, on a case-by-case basis, these are governed by a special piece of legislation which leaves but limited or even no room whatsoever for negotiation.

The number of casefiles formed at the end of Q3 2024 reached 825. Only one negotiation file concerning NBFIs was formed, while all the others involved banks. By way of comparison, 575 casefiles were formed in the first nine months of 2023, which means an increase by 43% in the current year. Of the casefiles formed this year and settled until the end of the reference period, 721 concluded with a resolution (the parties accepted the solution proposed by the conciliator), while other 53 casefiles are still being processed. In 37 cases, one of the parties rejected the solution rendered by the conciliator and a report was issued, whereas in 14 cases, one of the parties withdrew from the procedure.

The share of cases resolved and concluded with a resolution (with the parties coming to terms) exceeds the figure of the similar period of last year. This year, the reported number of resolutions is 721, compared to the similar period of the previous year, when only 475 resolutions were reported (an increase by 52% this year).

Furthermore, before the end of Q3 2024, 246 applications were settled amicably by traders after the respective cases had been referred to ABDRC (traders negotiated directly with consumers), broken down as follows: 141 applications settled amicably with banks, and 105 applications settled amicably with NBFIs.

At the end of the Q3 of this year, we counted 1,724 enquiries made by phone, and 309 persons/consumers accessed the chat function available on the ABDRC website.

A breakdown of the applications by traders is as follows:

Banks:
• 2,084 compliant applications;
• 760 non-compliant applications;
• 1,540 requests for various information.

Classification of the 2,084 compliant applications:
• 824 casefiles formed at the end of Q3 2024 (23 casefiles were formed in 2024 from applications received at the end of 2023);
• 264 applications in screening phase – documents are being reviewed;
• 141 applications were settled amicably by the parties, after the consumer having first referred their grievances to ABDRC;
• 722 applications were closed;
• 156 applications were adjoined.

Classification of the 824 casefiles pending the procedure with proposed solution/conciliation:
• 721 resolutions rendered – the parties reached an agreement;
• 52 casefiles in processing phase;
• 37 reports – the parties did not come to terms;
• 14 casefiles in which one of the parties withdrew.

Means of filing compliant applications:

• 780 were submitted via the app (website);
• 1,208 were emailed;
• 60 were mailed;
• 36 were brought to, and registered by consumers in the office of ABDRC.

NBFIs:
o 755 compliant applications.

Classification of the 755 compliant applications:
• 1 casefile formed at the end of Q3 2024;
• 20 applications in the screening phase;
• 105 applications were settled amicably between NBFIs and consumers, after the consumer having first made a referral to ABDRC;
• 629 were closed – rejected by the NBFIs.

Means of submitting compliant applications:

• 709 were submitted via the app (website);
• 42 were emailed;
• 4 were mailed;
• 0 were brought to, and registered by consumers 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);
  • Shift from ROBOR to IRCC;
  • 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);
  • 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, statements of account, etc.);
  • Refunds of garnished amounts;
  • Mortgage deregistration;
  • Fraud committed via bank channels.

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;
  • 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).

BENCHMARKING:

CONCLUSIONS:

The ABDRC services continue to be accessed by increasingly more Romanians who have problems with their banks/NBFIs. Benefits of conciliation: the court proceedings are avoided and the contractual relations between parties continue; short case settlement time (an average of approximately one month over the last three years); the procedure is free of charge for consumers; and the expertise of conciliators are all important benefits for both consumers and the financial and banking institutions involved in these negotiations, particularly during economically difficult times (the effects of the pervasive rise in prices due to the war being fought close to the borders of Romania are acutely felt). In this context, the conclusions drawn for the first nine months of 2024 are as follows:

• • During the first nine months of 2024, Romanians filed close to 2,839 applications for negotiation with banks and NBFIs (e., 29% more than in the same period of 2023).
  • People filed most of the applications to banks, and the share of applications intended to banks (out of the total) went up from 64% to 73% compared to last year.
  • The number of negotiation casefiles (applications accepted by banks) reached 825, going up by 43% compared to Q3 2023.
  • The increase is even higher for resolutions (+52%). In 721 cases, the consumers came to terms with their banks, after the both sides accepted the solution proposed by conciliators.
  • The fact that the traders operating in the financial and banking system continued to welcome the amicable (direct) settlement further to a referral to ABDRC is another way of solving the claims raised by consumers, particularly when these claims concern simple matters and do not necessarily require the intervention/expertise of the ABDRC conciliators: 246 such cases/Q3 2024 v 442 such cases at the end of Q3 2023.
  • The decrease in the number of direct settlements and the increase in the number of cases vs the reference period of 2023 shows that, in the first nine months of this year, banks preferred to address more issues raised by their customers via ABDRC, rather than inviting them to the bank for a direct settlement. Essentially, it can also be that the issued raised by consumers with their banks via ABDRC are no longer the simplest ones (these are addressed directly in the bank’s office), but are more complex and require the expertise of the Centre’s conciliators.
  • Since the start of the year, ABDRC has been running a large-scale awareness, financial education and communication campaign involving commercial banks, magistrates, journalists and ABDRC conciliators. The increase in the number of applications filed by consumers can be explained also by the fact, over the recent years, more and more people are finding out about ABDRC’s existence and work from the Centre’s communication and awareness campaigns.
  • During the first nine moths, ABDRC produced and broadcasted 9 financial education podcasts featuring top management representatives of commercial banks, ABDRC conciliators and reputable economic journalists (ABDRC’s media partners are prestigious TV channels and online publications).
  • In 2024, ABDRC profiled the consumer who turned to ABDRC, organized the annual press conference, as well as the conference “Consumer Protection: How to Choose between Alternative Resolution of Disputes and Court Proceedings?”, in partnership with the National Institute of Magistracy (NIM).
  • The csalb.ro website has a section dedicated to financial education, where one can find narrative and video information that consumers can rely on to make their financial decisions.
  • The informative productions of ABDRC are promoted both on ABDRC’s own channels (website, Facebook, LinkedIn, YouTube, Instagram, and TikTok), and via our media partners (TV channels, radio stations, online media, local press and blogposts).
  • Another way of informing consumers is the ABDRC newsletter sent out to consumers of financial services who subscribed to receive this information.
    
  • Via its call-centre, ABDRC contacts consumers who want this (having agreed to this in various social media campaigns) by phone. They receive information about an alternative procedure to settle their disputes with banks/NBFIs.
  • In the first nine months of the year, 122 court cases were closed because the underlying disputes had been amicably settled via ABDRC.
  • In the end of Q3 2024, the negotiation procedures involving consumers and banks facilitated by ABDRC resulted into benefits of approx. EUR 2.3 million. Thus, the total amount of the benefits obtained (in all 8 years of operational activity of the Centre) is approximately EUR 13.65 million.
  • We will continue to employ efforts to make more popular, and ensure media coverage of, the alternative resolution through the courts of law across the country.

   

  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. On average, it takes 7 minutes to fill out the application directly on the website csalb.ro.

  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.

   

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