Alternative financial and banking dispute resolution Bucharest, 5 October 2017

ALTERNATIVE BANKING DISPUTE RESOLUTION CENTRE ABDRC is an entity which is: independent apolitical not-for-profit of public interest The mission of ABDRC is to support consumers and traders for out-of-court resolution of the contractual issues, in a balanced, expeditious and cooperative manner, working with experts in the banking and financial sector who, according to the procedure chosen by the parties, may either propose or impose a resolution solution for the dispute. Activity of ABDRC is steered by a Steering Board formed of 4 members appointed one each by the National Consumer Protection Authority, the Romanian Banking Association, the National Bank of Romania and consumer associations, and 1 independent member, elected by the 4 appointed members. The Board members do not have executive duties, are independent in their decision-making, and are not involved in resolution of disputes.

How can ABDRC help alternative resolution of disputes? ABDRC arranges two types of alternative dispute resolution procedures: The procedure in which the conciliator PROPOSES A SOLUTION, which the parties may either accept or not. The proposed solution can be accepted within 15 days. If accepted, it becomes enforceable. The parties may withdraw at any time from the procedure. The procedure in which the conciliator renders a BINDING SOLUTION. These procedures are optional, voluntary, separate from the court proceedings, and free of charge for consumers. Regardless the procedure chosen by consumer, its commencement is conditional upon the consent of the trader. Disputes and reviewed and resolved only by the persons listed as ABDRC Conciliators.

Which are the steps? Consumer is dissatisfied with the contractual relation with the financial-banking institution Consumer contacts ABDRC ABDRC presents the two types of ARD procedures to consumer Consumer chooses the procedure, fills in the application and ABDRC contacts the financial-banking institution Conciliator arranges meetings and discusses with the parties to identify a solution Conciliator proposes or imposes a solution, term of the procedure chosen

TYPES OF APPLICATIONS THE MOST FREQUENT APPLICATIONS OF CONSUMERS REGARD: repayment of risk, management, monitoring, etc. fees; loan rescheduling/staging out; reduction of the monthly installment; reduction of the interest rate, and freezing of exchange rate at the rate applied at execution of the loan agreement (in CHF); defaults of the contractual conditions by traders, leading to declaration of the loan early repayable; calculation and payment of the installments in lei, at the rate of exchange applied at the time when the agreement was concluded; removal of clauses qualified by consumers as abusive, as regards application of default interests; deregistration of entries in the Credit Register, etc.

TOP 3 CASEFILES RESOLVED IN RECORD TIME 8 DAYS (Bucharest) removal of the risk fee (then turned into a management fee) - EUR 56; the bank returned EUR 1,800; the consumer repaid the loan in advance of maturity. 9 DAYS (Bucharest) removal of the management fee; the bank returned RON 3,200; the consumer repaid the loan in advance of maturity; 17 DAYS, ONLINE ONLY (Botoșani) removal of the risk fee; reduction of the interest rate; the rate was reduced by close to EUR 100 (from EUR 330 down to EUR 234); the bank returned EUR 800;

SOLUTIONS Loan in EUR: removal of the management fee; application of a fixed interest rate; the monthly installment was reduced from EUR 280 down to EUR 185; the principal was reduced by EUR 18,500 Loan in RON: removal of the management fee; the monthly installment was reduced by RON 145 from RON 710 down to RON 565 Mortgage loan in EUR - online: interest was reduced from 9.75% p.a. down to 5.75% p.a.; the installment was reduced from EUR 207 down to EUR 95; the loan principal was reduced by EUR 3,100 Mortgage loan in CHF, conversion into RON: reduction by CHF 15,000 of the principal; the monthly installment was reduced from RON 1,300 down to RON 480 Mortgage loan in EUR: removal of the risk fee (EUR 90); EUR 3000 were returned; the monthly installment was reduced from EUR 350 down to EUR 260 Loan in RON (restructured): the monthly installment was reduced from RON 1,300 down to RON 600; the repayment period was extended Mortgage loan + personal loan with mortgage in EUR: reduction of the interest rate from 9.5% down to 3.5% p.a. for both loans; removal of the management fee; reduction of the principal by EUR 7,000; the monthly installment was reduced from EUR 700 down to EUR 310

RECOMMENDATIONS FOR CONSUMERS read carefully the entire document BEFORE signing it; ask the officer of the bank or NBFI to explain to you clearly the meaning of the terms or clauses in the agreement; pay increased attention to costs (interests, default interests, fees), their calculation, and to what they refer: the initial principal, the current principal, etc.; where these costs are linked to interbank interest rates, such as LIBOR, EURIBOR, ROBOR search for information about their developments; pay due attention to the collaterals lodged in favor of banks or NBFIs: talk directly and as soon as possible with the bank or the NBFIs whenever you experience difficulties in repaying the installments; in any contractual phase, you may turn to the free-of-charge services of ABDRC to have your disputes resolved: you can do this in person, or you may also be represented attorneys or by the consumer protection associations you are part of, or by other third persons under notarized power of attorney.

Tell us how we may help you 021 9414 Str. Sevastopol nr.4 District 1 Bucharest, Romania email: office@csalb.ro www.csalb.ro