National Bank of Serbia submitted for public debate the draft of the new Law on the Protection of Financial Services Users, which is perceived by the public as a "law for limitation interest rates", but it also contains other solutions that regulate the relationship between banks and their clients.
One of the novelties contained in this document is a new deadline for those who cannot repay a housing loan, and there is also an increase in the limit for concluding contracts at a distance, as well as regulation of the practice of "binding" banking services, the portal writes. Biznis.rs.
Although attention is focused on the changes concerning the limitation of interest rates, the National Bank of Serbia has included other novelties in the draft of the new law, including an additional deadline for those who cannot repay the housing loan.
"In case of inability to repay the housing loan, the bank is obliged to offer the user to try to sell the property himself within a certain period, which cannot be shorter than two months, and return the debt to the bank from the sale price," says the NBS explanation.
In this way, as they point out, the user is given the opportunity to sell the property himself, at a higher price compared to the price achieved in the enforcement procedure, that is, in the out-of-court settlement procedure.
The draft law specifically states that the bank has the right to calculate interest on the user's debt during the period determined for the sale of real estate at a rate that is ½ lower than the default interest rate, that is, the contracted regular interest rate.
"In the case of the sale of real estate by the user, the purchase price is paid to the creditor's bank account, and the provision of the contract on the sale of real estate that stipulates otherwise is null and void," the draft stipulates, and specifies that, after collection of its claim, the bank is obliged to put on disposal to the user of any remaining amount of the purchase price.
"If the public notary certifies the contract of sale without the consent of the creditor's bank, he is jointly and severally liable with the debtor to the bank for the resulting damage. If the user does not transfer the income from the sale of that real estate, the bank can initiate an out-of-court settlement procedure in accordance with the law governing mortgages, i.e. an enforcement procedure to settle its claim," the draft of the new law states.
New limits for "armchair" contracts
Among the newspapers are more detailed regulations on the assessment of creditworthiness of users. The goal, as stated in the explanation of the NBS, is to prevent his over-indebtedness, but also to inform him in a timely manner about the existence of some debt or other reasons that, in the bank's opinion, reduce his creditworthiness.
When it comes to digitalization, the draft Law stipulates that the contract on financial services can be concluded in written and electronic form, and that in addition to a handwritten signature, that is, a qualified electronic signature, two-factor authentication can be used up to a certain value of the contract. In addition, the contract does not have to be signed manually only on paper, but it can also be done on a tablet or some other similar device, as a permanent data carrier.
"In addition, the limit for concluding distance contracts using two factors to verify the user's identity has been increased from 600.000 dinars to 1.200.000 dinars for loans, i.e. 2.400.000 dinars for deposits," reads the draft of the new law, which is subject to public discussion. until September 20.
What is bundling and what is service bundling?
In the explanation of the draft, the NBS points out that for the first time the practice of tying and combining services is being regulated. On the one hand, the bank is forbidden to condition the granting of loans with the obligation to use some other service, except exceptionally.
Here is what is specifically written in the draft of the new law: as an exception to paragraph 2 of this article (prohibition of "tying"), the credit provider may, as a condition for concluding a credit agreement, require the user to open or maintain a previously opened payment or savings account if the purpose of such counts exclusively:
- collection of funds for loan repayment, and/or
– loan repayment, and/or
- provision of additional means of security in case of non-fulfillment of obligations.
The credit provider may also require the user to deposit a certain amount, i.e. part of the regular monthly income (salary, pension, salary compensation, etc.) in his payment or savings account maintained with that bank.
On the other hand, the bank is given the right to combine services, and the NBS also gives an example - to offer a certain package that is more favorable than buying services separately, with the fact that each user must have the possibility to use the services separately, that is, only one of service from the package.
According to the NBS, ten years after the adoption of the Law on Payment Services, the draft of the new law specifies the obligations of payment institutions and electronic money institutions in terms of crediting the consumption of their users for a period of up to one year.
As they pointed out, a special chapter of the draft is dedicated to the procedure for objections and complaints, while the mediation performed by the NBS between banks and clients has been "turned" into conciliation.
"Unlike mediation, in conciliation, the mediator, in accordance with his best knowledge, makes certain proposals for the solution of the disputed relationship and actively encourages the parties to accept that solution or to give a certain alternative to that proposal," reads the explanation of the newspaper in the draft of the new Law on User Protection financial services.
Source: Biznis.rs
