During the summer months, consumers sent 50% more requests to the Center for Alternative Dispute Resolution in Banking (CSALB) compared to the same period last year, and the number of negotiations between consumers and banks increased by 60% compared to June, July, and August 2023. Consumers have sent approximately 2,500 requests since the beginning of the year, and 720 negotiations have been conducted so far. In most cases, consumers requested the following from banks: Refunds of amounts previously charged as fees; Amicable resolution of disputes currently in court; Assistance from financial institutions in cases of fraud and scams where consumers were victims. (more…)

Since the start of the year, Romanians filed more than 2,100 applications for negotiation with their banks and NBFIs to the Alternative Banking Dispute Resolution Centre (ABDRC). This means 20% more than during the same period of 2023. The reason found in the majority of loan agreement renegotiation applications is the fact that ROBOR and IRCC rates remain high, and that these are used to calculate the floating interest on loans. Increases higher than for the number of applications were reported for the actual negotiations (25%) and reconciliations (31%). In the first half of this year, the benefits obtained by consumers from negotiations with banks are about EUR 1.5 million. (more…)

The current period of uncertainty has led to stagnant demand for mortgages and increased savings. Bankers are even seeing a saving trend reflected in long-term investment products.  Consumers do not show the same level of caution when faced with attempted bank fraud or fake investment offers circulating online. As a result, the digitalization process is being held back by financial and banking institutions themselves, which are forced to introduce additional control mechanisms to make transactions more secure.

These are just some of the topics debated on in the Alternative Dispute Resolution Centre (ABDRC) in the 7th episode of #PodcasturileCSALB, featuring Vladimir Kaliniv and Valentin Cocean, in a discussion moderated by Irina Chițu. (more…)

The current crises have medium and long-term effects. That’s why banks need to offer sustainable and long-term solutions to clients experiencing repayment difficulties. Saving is one of these solutions. Another way out to overcome the deadlock can come from negotiations with the bank via ABDRC, but a cost adjustment by the bank must be accompanied by a rethinking of consumers’ lifestyle.

These are just some of the topics debated on in the Alternative Dispute Resolution Centre (ABDRC) in the 6th episode of #PodcasturileCSALB, featuring Bogdan Pleșuvescu and Camelia Popa, in a discussion moderated by Norel Moise. (more…)

In an economic setting marked by threats and bad news, it is essential to remain realistic. And this when it comes to both the decision people will make in this election year, and for the smooth operation of the economy. The standard of living of Romanians, which has been increasing despite the chained crises, is part of this realism.  How should we relate to the election year and the bad news? Why is saving growing faster than borrowing? What solutions are therefor consumers with CHF loans? These are just some of the topics debated on in the Alternative Dispute Resolution Centre (ABDRC) in the 5th episode of #PodcasturileCSALB, featuring Flavia Popa and Dragoș Gheorghe, in a discussion moderated by Denis Ciulinaru.

| ABDRC PODCAST | https://youtu.be/l1TBiH_8uuI

This is the 4th year of ABDRC interviews with senior executives of the banking system and legal experts. This year, leading business journalists are invited to debate the hot banking topics in the Alternative Banking Dispute Resolution Centre (ABDRC). We review the news and their impact on the financial and banking market, as well as how consumers relate to their credit institutions, against a volatile and unpredictable socio-economic background.

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Judges are advised to recommend consumers and banks to have their court disputes settled amicably. Around 60 judges coming from tribunals, district courts and Courts of Appeal in a number of counties of the country attended the Conference organised by the National Institute of Magistracy (NIM) and the Alternative Banking Dispute Resolution Centre (ABDRC): “Consumer Protection: How to Choose between Alternative Resolution of Disputes and Court Proceedings?”

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Contracts between consumers and banks should be simplified, and this may come with the development of digitalization in the banking industry. The Romanian legal framework obliges parties to conclude voluminous contracts with technical clauses that are difficult to understand. Many consumers read contracts only after they have problems paying their instalments, while others choose the costly option of going to court, even though amicable resolution at the Alternative Banking Dispute Resolution Centre (ABDRC) is free for consumers and takes less than a month on average. Here are some of the topics discussed in the third episode of #PodcasturileCSALB, featuring Alexandru Berea and Nela Petrișor, and moderated by Gabriel Bălașu. (more…)

An expected stronger role of ABDRC with the new legislative changes. For the whole range of loans, banks are required to prove previous attempts of restructuring the debts with payment delays longer than 90 days. Such restructuring should consider the consumer’s situation and include refinancing, deferral or stay of instalment payments, interest rate changes, currency conversions, or partial debt write-offs. All these measures can be found now in the Government Emergency Ordinance No 15/2024 (previously, in the Government Emergency Ordinance No 52/2016 on mortgage loans). Furthermore, these are also the solutions that conciliators have been proposing in consumer-bank negotiations ever since 2016, in conciliations held at the Alternative Banking Dispute Resolution Centre (ABDRC). Thus, this recently-adopted statutory obligation could increase the number of amicable settlements via ABDRC, for both loans that are threatened by enforcement, and those already in enforcement proceedings. Here are some of the topics discussed in the third episode of #PodcasturileCSALB, featuring Ciprian Chiorean and Mircea Stroe, and moderated by Vasile Coman. (more…)

While the country’s economy heavily relies on the financing the banking system is able to extend, bank representatives say that nothing erodes the trust between consumers and credit institutions like the populism displayed by some politicians and institutions. The effects are worsened by the low financial intermediation (less than a third of the European average), overcharging and the fines applied to banks in order to turn to good electoral account the negative perception of banks.  Here are some of the topics discussed in the second episode of #PodcasturileCSALB, featuring Florin Dănescu (executive president of the Romanian Association of Banks) and Septimiu Stoica (CSALB conciliator, teacher, lawyer), and moderated by Emilia Olescu (Editor-in-Chief of BURSA Newspaper). (more…)