Penalty interest for early repayment of loans under new or existing contracts shall drop out, the National Assembly decided at its meeting on April 9, 2014. The parliament adopted at second reading amendments to the Consumer Credit Act.
The amendments shall enter into force three months following their promulgation in the State Gazette.
The regulations will apply only to mortgage agreements signed after the law comes into force, except for the fees, compensations and penalties which can be renegotiated.
Under the other significant amendments recently introduced to the Consumer Credit Act, creditors are prohibited from collecting more than an on-time fee and/or commission for the same service. The type, amount and service for which fees and/or commissions are collected must be clearly defined in the consumer credit contract.