Interest rates charged by non-bank financial institutions capped, decides Chamber of Deputies

The Chamber of Deputies adopted on Tuesday the bill on consumer protection on the capping of the effective annual interest rates at non-banking financial institutions and the statute of limitations for collecting debt payments.

The bill on consumer protection regarding the total cost of credit and the assignment of receivables was adopted with 172 votes in favour, 81 against and 3 abstentions.

The law aims at consumer protection measures in legal relations between consumers, non-bank financial institutions and debt recovery entities, establishing rules against excessive interest, the bill's explanatory memorandum states.

"The present law applies to the legal relations between consumers, non-bank financial institutions granting credit under Law No 93/2009 on non-bank financial institutions and entities performing debt collection activity, establishing rules for the protection of consumers against excessive interest rates in order to maintain contractual balance and ensure the integrity of the domestic financial-banking market," the adopted text reads.

The Chamber of Deputies is the decision-making body.