In 2022, CSALB received more than 2,600 requests from consumers asking banks (1,712 requests) and IFNs (915 requests) to start negotiations under the Center. In 7 years of operation, this is the largest annual number of appeals for the peaceful resolution of disputes in relation to creditors. Since 2016, CSALB has registered more than 12,000 requests.

Brief information:

• 2022 is the most effective year in the relationship between consumers, banks and IFNs under the Center for Alternative Dispute Resolution in Banking (CSALB).

• Most of the negotiations ended with reconciliation of the parties;

• 145 lawsuits were closed at the request of the parties to the settlement agreement;

• IFNs directly resolved almost 40% of requests received by them

• The total benefit received from the negotiations was the highest in the last 7 years.

A significant part of closed applications (for which no reconciliation file is created) are applications rejected for objective reasons. For example, in 2022 CSALB received 1,034 requests to delete records from the Credit Bureau, of which: 317 requests related to banks (representing 18.5% of all requests to banks) and 717 requests related to IFN (representing 78.4% of all requests addressed to the TIN).

IFNs resolve directly (after notification to CSALB, but without the involvement of a conciliator) approximately 40% of the total requests addressed to them, the majority of which are for the removal of records from the Credit Bureau.

We remind you that requests aimed at removing records from the Bureau of credit histories, processing loans under the “First Home” program, assigned loans, etc., are mostly classified. The reason is that in each of these cases there is specific applicable law, and the real limits of negotiation are very limited or non-existent.

Last year, CSALB held 658 negotiations between consumers and banks/IFNs. For the second time in the last 7 years of activity, the threshold of 650 negotiation files was exceeded. Compared to 2019, when 664 negotiations were recorded, the efficiency was significantly higher last year.

€2 million is the amount obtained in 2022 as a result of negotiations between consumers and banks carried out in the framework of CSALB. Reduction or cancellation of fees, adjustment of interest, reduction or even complete removal of debt (in particularly difficult cases) are part of the solutions provided. For 7 years of activity, the total amount of payments reached 8 million euros. Around €4,000 is the average amount of benefits a consumer received in 2022, lower than in 2021 (€4,300), but there were 50 more people last year than in 2021 who took advantage of bargains during negotiations.

47% of consumers who resolved their CSALB inquiries through negotiations with a bank in 2022 received benefits of between €1,000 and €5,000. 11% of them (about 60 people) managed to benefit from negotiations in the amount of more than 10,000 euros.

4.5% of negotiation requests sent by consumers to CSALB are rejected by banks without valid reasons. This is the lowest rating percentage in the 7 years of the Center’s activity.

The main reasons for the submission of appeals by banks are: the presence of a case in court, the opening of enforcement proceedings and an attempt to resolve the appeal directly with the consumer.

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For example, excluding negotiations, the number of claims settled directly by the parties (after referral to CSALB) in 2022 was as high as in the previous two years combined (592 direct settlements). The majority of direct settlements belong to IFN: 61% of claims were settled directly by the parties. These are simpler cases that do not require the involvement of a mediator, and this growth also indicates that many traders are using different methods of amicable settlement of disputes in direct relations with their customers.

Alexandru Peunescu, representative of the National Bank of Romania in the CSALB Coordination Council: “CSALB recommends that each individual bank create conciliation files in situations where there is an opportunity to settle some existing disputes in court as a result of their authorization under CSALB. Banks must then identify consumers with potential problems and refer them to conciliation if they cannot find a solution through direct negotiations with them. In addition, requests that fall under the restructuring stream or requests that relate to certain aspects of buyout procedures may also be discussed within the CSALB. Last but not least, if there are closed inquiries but a resolution is later found for the consumer, the seller may recommend that the consumer submit a new inquiry to CSALB if a direct resolution is not possible.

Another recommendation for 2023 is that mandates from banks have higher value limits compared to commercial offers they have in their portfolio, the argument being the consumer’s rejection of the bank’s initial offer (within a direct settlement attempt).

Considering that it has been three years since the extension of the powers of the TsDALB to legal entities, we call on banks to accept cases for this type of client as well, considering that during 2022, 10 applications from party companies were registered, and only one was successfully negotiated. And here the risk of going to court is just as high.”