The legislative body adopted in the first reading a bill that provides more rights to persons applying for loans. The commercial banks and institutions of the non-banking sector are obliged to exactly inform the clients about the interest rate on the loan, the method of calculating it and any other costs included or commissions charged, IPN reports.

The MPs said the population does not have extensive knowledge about lending, while those who grant loans tend to make additional profit by charging different hidden commissions that increase the effective interest rate. The lawmakers stressed the state must protect the people and should take such steps.

Deputy Minister of Economy Octavian Calmic said in Parliament that the levying of commissions, taxes and tariffs during the period of validity of the lending contract, besides those set by the legislation, will be banned. No commission will be charged for depositing cash for paying the interest rate on the loan when the client wants to change the interest payment date or the guarantees. Also, the clients will be able to withdraw from the lending agreement without providing explanations within 14 calendar days of the signing of the contract.

Disputes arose between the MPs when the bill was discussed. Liberal lawmaker Valeriu Munteanu said the Government approved the bill on March 22, after it was dismissed, while the Liberal-Democrats stated that the executive’s notice reached Parliament in March, while the bill was endorsed on January 10.