The negotiations between consumers and banks were addressed in only 25 days in 2022, being the best average time since the establishment of the Alternative Banking Dispute Resolution Centre (ABDRC). Thus, as compared to 2019 and 2020, a solution is now reached twice faster. This is proof of the parties’ willingness to find a fast solution, by mutual compromise, as well as to fine-tune the conciliation mechanisms by shortening the response times on the part of both the banks, and the consumers. Some negotiations on more complicated cases though, may take even longer than 150 days. Such a case is that where a bank agreed to writing off RON 446,000 of a consumer’s loan principal, however, conditional upon the two co-debtors paying RON 800,000 and, thus, repaying a loan taken back in 2007. This shows that banks are open to negotiation with all categories of consumers, since even those with a good financial situation can experience difficulties in paying their debts. (more…)

2022 is the most effective year in the relationship between consumers, banks and NBFIs, within the Alternative Banking Dispute Resolution Centre (ABDRC). Most of the negotiations ended with the reconciliation of the parties; 145 lawsuits were closed because the parties wanted an amicable settlement; The NBFIs directly resolved nearly 40% of the applications submitted to them, and the total benefits obtained from the negotiations were the highest in the last 7 years.“In the case of certain banks, in particular those that have integrated into their strategy the replacement of expensive court litigations with amicable settlements within the ABDRC, we believe they can even measure the financial results arising from this openness to settle consumer issues.” – Alexandru Păunescu, representative of the National Bank of Romania in the ABDRC’s Steering Board. (more…)

This year, the Alternative Banking Dispute Resolution Centre received 46 requests grounded on account fraud, with an increasing number of requests in December, also caused by the fact that online transactions have increased in number as well. Only one third of these requests (14 cases) were accepted by the banks for negotiation, the rest were rejected after the merchants invoked the fact that the bank is third party to the obligation of restitution or the payments were made by consumers who disclosed their personal information and entered all security data themselves. Find out how cybercriminals are trying to defraud you, how you can protect yourself from these frauds and what are the recommendations for financial-banking institutions in such cases! (more…)

While at the time when ABDRC was established and started to operate (2015-2016) the number of court proceedings between banks and consumers was approximately 40,000, today the number of court disputes has dropped three times, down to little over 13,000 lawsuits. In this context, the Alternative Banking Dispute Resolution Centre (ABDRC) urges again the commercial banks to guide their customers to access the Centre’s services in order to find an amicable solution with the aid of a conciliator, with the view reducing even more the workload of the courts of law. 122 court cases ended in 2022 because the parties turned to conciliation via ABDRC. In 2021, as many as 67 lawsuits were ended this way. In fact, banks recommended customers to turn to ABDRC as soon as they were served the statement of claims. This can render highly effective the negotiations with the banks, and negotiations can start even before the first hearing. (more…)

The pressure exerted by the general price rises and the increase in the banking interest rates have caused banks to accept increasingly more applications for negotiation submitted by consumers to ABDRC. Since the beginning of the year, as many as 823 consumers went through the entire conciliation process (application filing, negotiation, final resolution – a solution accepted by both parties) or reached a direct settlement with banks/NBFIs, having first approached ABDRC. Compared to the similar period of 2021, the increase is by 85% (n.n. in Q3 2021, 445 Romanians were reported in one of these two situations). The benefits that consumers who negotiated with banks obtained during this period are in excess of EUR 1.5 million. (more…)

The flat interest is seen by 39% of Romanians as the best solution for them, even if their rate is higher than the floating interest rate. This is a key finding of an opinion poll conducted by the banking comparison tool Finzoom.ro and commissioned by the Alternative Banking Dispute Resolution Centre (ABDRC). Negotiation with banks via ABDRC is ranked high among the options of consumers seeking to have their financial situation improved, following refinancing with their own bank (8%) and early repayment (7%). The measures liable to turn into court cases, such as datio in solutum, is an alternative of choice for only 1% of the 1,484 respondents to the questionnaire. This shows that families facing higher instalments are willing to find a solution to their financial problems that would allow them to continue the contractual relations, and not lose the mortgage property they live in (in most of the cases). (more…)

Since the start of the year, more than 1,700 consumers have filed applications intended at banks and NBFIs via the Alternative Banking Dispute Resolution Centre (ABDRC). Most of them seek solutions to have their instalments affected by the rise in prices and floating interest reduced. Credit institutions responded with a rate of applications unreasonably rejected below 4%. Moreover, in August, the amount of the benefits obtained further to negotiations between credit institutions and consumers in 2022 has already exceeded the same amount of the entire 2020, i.e. EUR 1.3 million. (more…)

In the first half of the year, the Alternative Banking Dispute Resolution Centre (ABDRC) has seen approximately 40% more negotiations between consumers and banks compared to the same period of last year. Lower instalments, shifting from ROBOR to the Consumer Credit Reference Index (IRCC) or closure of the court proceedings are the top issues consumers and banks have negotiated on in conciliations in the first half of the year. ABDRC recommends consumers to consider deferral of the loan instalment payment only as a last report. Such deferral comes with additional costs, which only add to the lack of predictability as to what the economic conditions would be when instalment payment is resumed. On the contrary, consumers are urged to turn to the banks, the NBFIs and/or ABDRC when they are faced with financial difficulties that can have a bearing on their loan agreements, and search together for customized solutions that can be applicable throughout the entire term of the loan. (more…)

In an unpredictable period from an economic and social point of view, the solutions for solving financial problems cannot be general, but are available to banks and consumers, through negotiation, say several specialists, through the Alternative Banking Dispute Resolution Centre (ABDRC). Judges could also play an important role in resolving disputes amicably between consumers and banks, by recommending alternative settlement methods, says Valeriu Stoica, former minister of justice. The banks appetite to solve consumer problems increases. By mid-June, the number of negotiations between consumers and banks is 40% higher than in the same period last year. More than 300 applications were accepted by banks for negotiation, compared to 213 in the same period in 2021. In 225 cases this year, the negotiations ended with the reconciliation of the parties, compared to 187 in 2021, a 20% increase in cases successfully completed. (more…)