Recently, the new additions and amendments brought to Government Ordinance No. 13/2011 on legal remunerative and default interest for monetary indebtedness, as well as for the regulation of some financial and fiscal measures in the banking field, Government Emergency Ordinance No. 50/2010 on credit agreements for consumers and Government Ordinance No. 51/1997 on leasing operations and leasing companies were declared unconstitutional.

The following rules were targeted by the decision of the Constitutional Court of Romania:

  • The leasing and credit agreements concluded with consumers no longer represent writs of execution;
  • Throughout the legal relationship concluded between consumers and professionals, the default interests may generate interest, in their turn, but only under a special agreement and only after the due dates are exceeded by more than 1 year;
  • For the transfer of the receivables resulting from the credit agreements concluded with consumers, assignees will not be able to charge consumers with more than twice the amount paid for acquiring the receivable in question;
  • The damages resulting from credit agreements will be capped at 50% of the amount representing the outstanding instalments on the termination date;
  • The annual percentage rate (APR) will be capped at a specific percentage, depending on the type of credit agreement.

Therefore, these unconstitutional rules are suspended as of right until the competent government bodies adopt new legislative amendments, in accordance with the Constitution of Romania.

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