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Albania introduces new regulation to protect customers from bank abuses

Xinhua, July 14, 2015 Adjust font size:

The Bank of Albania has approved a new regulation on Monday that limits abuses of private banks with borrowers, which forces banks to notify borrowers for the exact interest rate, for every commission or other cost they will have to pay, according to Albanian daily news.

The regulation covers consumer and home loans and gives consumers the right to withdraw from the loan even after they have signed the agreement with the bank, without being forced to give explanations.

For consumer loans, individuals have the right to withdraw 14 days after they have signed. For home mortgages, they have seven days.

If they have withdrawn funds during this time, they should be notified about the value they must return before the loan is closed.

The new regulation limits the commissions that private banks can charge on borrowers when they pay the debt before the time is due.

So far, banks could place commissions without any legal limit. With the new regulation they can not force clients pay more than 2 percent of the value if they want to pay the loan before the terms agreed in the contract. Endit