Credit restructuring was the main solution reached by consumers and banks following negotiations held this year within the framework of the Center for Alternative Dispute Resolution in the Banking Sector (CSALB).

• Since the beginning of the year, more than 2,640 consumers have applied for negotiations with banks and financial institutions within the framework of the CDALB.

• The main problems they reported related to difficulties in paying their contributions.

• Most of the 680 negotiations held since the beginning of the year involved decisions on restructuring and rescheduling loans, reducing balances, reducing interest and erasing debts created by late payments.

• The primary goal of the decisions negotiated through CSALB intermediaries was to reduce monthly payments and bring credit agreements in line with consumers’ current financial statements.

How did consumers contact the BANK? What did they get?

Valentina Aylinkai, Bacau: “I’m asking for help with an advanced loan rate and I’m citing high-level medical reasons. We applied for help from the insurance company, but the amount they offered was a pittance compared to the financial difficulties we faced.

At the same time, in the same loan, the guarantor asks him to refuse the loan, since he is no longer a family member and will leave the country in the near future.”

Decision provided by mediator Dragos Gheorghe and accepted by the parties: The bank waives outstanding interest accrued/updated until the date of execution of the decision in the amount of 2,400 lei. Debt restructuring will take place by combining two credit agreements into one. The interest will be reduced and the new balance will be charged a fixed interest rate of 6%. The previous interest rates on the two loans were 8.9% and 26%, respectively. The credit term will be increased to 84 months. The current co-payer cannot be excluded from the loan, and no solution has been found for this request.

Valentyna Ailinchai: “Not everything is resolved, but I am satisfied. He extended my period, and instead of two installments on a credit and merchant card, almost 2000 lei, I now have one installment of 650 lei.

The loan was for personal needs, but with kids in college and medical issues that required monthly treatment, I couldn’t pay anymore. The problem wasn’t that I didn’t want to pay, but I got sick and the costs went up. I was always behind on my payments and borrowing to pay. Everything took about 2 months under CSALB. It went smoothly and without any effort on our part.”

How did consumers formulate requests to the TIN? What did they get?

Dragos Man, Bihor: “In 2007, I took out a mortgage loan for 63,000 Swiss francs. I am asking for your support in negotiating with IFN to find an amicable solution to ease the financial burden that is becoming more and more difficult for me to cope with. If on the date of conclusion of the contract the cost of the loan was equivalent to 38,000 euros, at the moment it is equivalent to 43,000 euros after 15 years of payment. The solution I was thinking of would be to reduce the balance by 35%. At the same time, I also ask for the return of the commission for granting the loan in the amount of 1,270 Swiss francs.”

The decision provided by mediator Vasyl Nemesh and accepted by the parties: The seller provides the consumer with a partial write-off of the debt in the percentage of 20%, related to the credit agreement. The difference remaining after the partial removal will be reimbursed in accordance with the terms of the contract in monthly payments until the contract expires.

Dragos: I asked for a balance reduction of 30-35% and finally got 20% after 6-7 email exchanges. About a month later, everything was ready, I reduced the claims, they increased the initially proposed amount, and we settled. The mediator did an excellent job, and I felt that I was no longer alone in the dialogue with the bank, but represented by the institution. The ratio seems to have evened out, and that made me happy. At first I decided to contact a lawyer, but he could not get anything from the bank, so I stopped working with him. I then approached CSALB directly, I knew about the Center from a group of clients with Swiss loans. After all, CSALB was a better ‘advocate’ than a lawyer.”

Other cases decided under CSALB

VP consumer from Buzeu: “Current contract with the bank, overdue 3 installments. I have been out of work for 6 months now and my husband’s company is struggling to pay the bills. I apologize for the delays. I have been paying month after month for almost a year now, but I still have a debt. I am asking for a postponement and a reduction in rates. I note that in the near future I am promised employment in the field of sales-agribusiness with an above-average salary.”

The decision made by mediator Valentyn Kotsean and accepted by the parties: The credit granted to the consumer will be restructured in the sense of including outstanding amounts in the credit balance, extending the term of the contract and providing a grace period of 6 months, during which the consumer will pay a monthly installment of 50 lei. After the grace period, the rate will be 866 lei. The received loan will have a repayment term of 120 months and a fixed interest rate of 7%.

VE consumer from Ialomita: “Because of the general increase in prices, I have a bank loan that I cannot repay. I can barely manage the installments that I haven’t paid in full for a long time (…)”

The decision made by the mediator Kosmin Vasyl and accepted by the parties: The seller and the consumer agree to the restructuring of the debt, keeping the initial costs in favor of the client and increasing the credit period according to the selected option to 36 months, with a monthly rate of approximately 555 lei. To take advantage of this solution, on the date of signing the new credit agreement, the consumer will pay the current debt from own sources (approximately 700 lei), as well as costs related to restructuring (approximately 150 lei). ).

BM consumer from Vylch: “In 2007, I bought an apartment worth 60,000 euros. The loan was concluded in Swiss francs. The rate I am currently paying is 547 Swiss francs, about 2700 lei. I remember that I applied for a rate reduction. I was not given an official answer from the bank, but the bank employees informed me that, given the family’s income, there is no need for financial assistance.”

The decision made by the mediator Corneliu Mushat and accepted by the parties: The IFN partially pays off the debt and reduces the balance of the obligations related to the loan agreement by 15% of the current value of the obligations, the loan will continue to unfold according to the repayment schedule, adjusted to the new value of the principal amount.

MR consumer from Bucharest: “I am in a difficult financial situation after applying to the IFN for several loans in 2022, not thinking that I would not be able to pay them off in the end. The problems continued this year, especially after I was fired. While on probation, my employment contract was terminated without notice. I am asking for a postponement of the installment payment without charging a penalty.”

The decision made by the mediator Corneliu Mushat and accepted by the parties: Regarding the consumer’s requests regarding the credit agreement for personal needs, the parties are invited to resolve the dispute by dividing the current debt in the amount of 4090 lei into 10 monthly payments of 409 RON, without charging additional penalties for this amount.

Alexandru Peunescu, representative of the National Bank of Romania in the CSALB: “We wanted to paraphrase as precisely as possible the requests that consumers made to the CSALB, as well as the way in which decisions are made after negotiations through the mediation of the CSALB conciliators, for two reasons: to show that the requests to the negotiations are written in simple language, and anyone experiencing difficulties in paying payments can enter into a dialogue with the bank and prevent the deterioration of their financial situation. The second reason is to highlight the variety of situations that people can face and the solutions that can be found within the conciliation process. Fortunately, in 680 cases this year, banks, IFNs (to a much lesser extent) and consumers have found solutions through CSALB and people have overcome their difficult financial times.

This shows that credit institutions have come to the aid of consumers, as well as that we are observing an increase in the level of financial education among the population. People act faster when faced with difficulties, are more often informed and enter into a dialogue with the bank or IFI. CSALB is one such way of dialogue through conciliation, and we are pleased that more consumers and banks are gaining access to amicable resolution. These are signs of the financial health that Romanian society is currently showing.”