President Klaus Iohannis promulgated on Monday the law on consumer protection, which refers to the capping of effective annual interest rates of non-bank financial institutions and the curtailment of claims that debt collectors request.

The law was adopted by the Chamber of Deputies on March 26 as the decision-making body. Deputies belonging to the parliamentary group of Save Romania Union and unaffiliated MPs have challenged the law at the Constitutional Court of Romania (CCR). On July 11, the CCR unanimously rejected the constitutionality objection as unfounded and found that the provisions of the Consumer Protection Act on the total cost of credit and the assignment of receivables are constitutional in relation to the criticisms made.

The normative act targets measures on consumer protection in their legal relations with non-bank financial institutions and entities that carry out the activity of debt recovery, establishing rules against excessive interest rates, the explanatory memorandum states.

The provisions of this law shall enter into force 90 days after the date of its publication in the Official Journal of Romania, Part I.

AGERPRES