BNR:  "The problems between banks and customers have to be resolved by an independent mechanism"

The National Bank of Romania (NBR) will put up for debate, in a working group, the creation of an independent mechanism that would be in charge of dealing with the disagreements arising between banks and consumers, before they get to the courts, Bogdan Olteanu, deputy governor of the NBR announced yesterday.

He also mentioned that the protection of consumers of financial services is necessary in Romania, adding that there are questions that the NBR will need to answer this spring and then make proposals in that regard. "We are waiting for a legislative framework from the Parliament", Mr. Olteanu, said. He stressed that mediation and arbitrage could be an alternative solution to resolve the lawsuits between the two parties.

The NBR official said: "We will have to choose a way. An institution with competences in every area. Or do we acknowledge in this particular situation as well the existence of a specificity of the financial industry and of the financial services and the need to approach the sector of financial markets distinctly, which is bigger than that of banking services? Do we separate these financial markets from the real economy? (...) These are questions that we will have to answer, probably this spring and then make legislative proposals".

In his opinion, ensuring a balance between consumers and the economic operator is important, including in terms of ensuring financial stability, as well as from the point of view of stabilizing and encouraging lending: "From these two points of view at least, the interest of the NBR in setting up the mechanism is obvious".

The statements of Bogdan Olteanu come as the authorities are working on implementing Directive 11/2013, which stipulates, among other things, that the solutions proposed for the resolution of conflicts must involve zero costs for consumers, and they must be quick and efficient.

In this context, Alexandru Păunescu, director in the NBR, stressed that it has to be determined where the financing for the entity in question will come from.

In Romania, in order to resolve some problems, consumers go to the ANPC, ASF, mediators, arbiters and/or the courts.

According to Mr. Păunescu, entities like mediators involve the reaching of amicable solutions, impartial, confidential, with the acceptance of the authorities, but they do not guarantee any results, as the classes that the mediators take are not sufficient for them to specialize in the banking sector.

Arbitrage is the private alternative, but it involves significant costs, Alexandru Păunescu further said. He mentioned that the courts are the most frequently accepted option for the resolution of disputes, but that the procedure is lengthy and very expensive.

The option of a specialized independent entity is quite established and likely, and is intended to reduce tensions among consumers, he further said, and he invited the officials of the Ministry of Justice, as well as the specialists in the area of arbitrage, as well as others to join the working group.

Brânduşa Ştefănescu, the vice-president of the International Court of Commercial Arbitrage of the Romanian Chamber of Commerce and Industry, thinks that mediators are not specialized in banking law and said that their charging of a fee, goes against the European directive. Judges aren't specialized in banking law either, Mrs. Ştefănescu says: "This subject isn't taught anywhere, and banking law is very complex and hard to master".

In his opinion, the most adequate form would be specialized arbitrage, as a Conciliation and Arbitrage Center could be set up for that purpose.

The question that Brânduşa Ştefănescu addresses however is which institution would support such a center, which can not survive without financing.

The uncertainty is a lot higher, from the point of view of Liviu Stancu, state secretary in the Ministry of Justice, who says: "Romania has to answer the question «Can we build an entity that would be impartial?». Can such a solution resist in Romania? How do we deal with the lack of confidence, because we have customers who are no longer willing to pay their loan installments?".

Mierlea, InfoCons: "We wouldn't want it to come to the point where we see bank branches with broken windows and people taking to the streets"

A few days ago, at the headquarters of the National Association for Consumer Protection and the Promotion of Programs and Strategies in Romania (InfoCons), a complaint was filed by "a man with a gun", said Sorin Mierlea, the president of the Association: "We have set up the National Center for Counseling and Information two years ago and nine days ago and we were expecting to see resolved cases by now, instead of things being at the stage they are now. Since the Center has been created, we have received over 150 complaints a month from consumers, who feel that nobody listens to them. (...). A few days ago, the last complaint was filed by a man with a gun. We wouldn't want it to come to the point where wee see bank branches with broken windows and people taking to the streets".

He said that if operators do not come to realize the importance of speech with customers, a systemic issue will arise.

Alin Iacob, the president of the Association of Romanian Financial Services Users (AURSF), thinks that there is a need for specialists that would resolve the issues between banks and customers before going to court, "but also of independent specialists".

The financing should come from the banking industry or from the banks that have been the subject of complaints, because they are the ones that caused the disagreements in the first place, he says.

"We want the relationship between banks and customers to return to move back from the Courts to the counter", said Alin Iacob.

He said that banks that have granted loans denominated in Swiss Francs (CHF) should respond to the consumers' request to participate in the collective negotiations, which are ongoing these days.

The first such negotiations occurred on Friday, between consumers and the representatives of Raiffeisen Bank, according to the information published by the Group of Customers with loans denominated in CHF.

AURS, which is supervising the talks, says that partial details about these negotiations will be made public in a few days.

"We remain extremely focused on the adequate representation of the interests of all those that have empowered us with the responsibility of representing them in the relationship with the banks who lent them money in a different currency which they did not want and for which no mention was made of its risks at the time the loan was granted. We are willing to negotiate with banks including individual solutions for the benefit of every one of those that we represent".

Simona Opriş, CPBR: "There is a mutual lack of trust between banks and customers"

Simona Opriş, the representative of the Council of Romanian Banking Professional Associations (CPBR), stresses that there is currently a mutual lack of trust between the two sides.

Among other things, he said that there are lawsuits between banks and consumers alike, as well as conflicts between the ANPC (National Consumer Protection Agency) and the NBR, a lack of trust between the two parties, speculative actions (from individuals) versus abusive actions (from banks), indirect costs for both parties, harder borrowing conditions, the hindering of consumption etc.

"There is a lack of experience in managing the situation", he says, amid "a low level of financial education", of the crisis that "could not have been predicted" and of the lack of lending.

"Amid unpredictability and negative publicity, we need to rebuild the trust between the two parties", Mrs. Opriş concluded.

Florin Dănescu, the executive president of the Romanian Banking Association said that in Romania, banks are represented by "very serious entities".

He also said that the more than 100 monthly complaints that Mr. Mierlea spoke about need to be resolved, but that banks must also take care of the other few millions of bank customers.

"The subjective opinions of the two parties must be listened to and somebody that is impartial must decide who is right", said Mr. Dănescu, who estimated that approximately 50% of Romanians don't use bank services.