Government Emergency Ordinance No. 174 on Consumer Credit Contracts


(enacted in 2008)

Government Emergency Ordinance No. 174 on Consumer Credit Contracts (Ordonata de Urgenta Pentru modificarea si Completarea Unor Acte Normative Privind Protectia Consumatorilor) amended several laws and requires that a credit institution offer the consumer, free of charge and before signing a contract: (1) a reimbursement format or similar document detailing the total costs of credit (including interest, commissions, taxes, and any other type of costs to be borne by the consumer) and (2) a copy of the draft credit agreement, which should disclose the duration of the contract and total amount of credit, and all interest rate information including the effective annual interest rate, and in the case of a variable interest rate, the reference index, the formula for its calculation and the periods and conditions of fluctuation. The law also extensively regulates any publicity related to credit contracts, imposing detailed requirements about what must be disclosed and the publishing format. Unilateral modifications of contracts are prohibited absent acceptance by the consumer.

Government Ordinance No. 21 of 1992, and Law No. 289 of 2004 on consumer credit for individuals, are both amended by this emergency ordinance and can be found under “Related Laws/Regulations.”

DISCLAIMER: Due to the fact that an English translation was unavailable for this law, information for this summary has been taken from secondary sources and not from review of the actual legal text.