The era of quick loans in the country, with just an ID card, without necessarily being in a job, is expected to end soon.
A draft law submitted to the Assembly by Democratic Party MP Jorida Tabaku aims to strengthen lending conditions in order to protect consumers. According to the legal initiative, anyone who takes out a loan can cancel it within 14 days, without having to provide explanations for this decision.
"In the event of withdrawal from the credit agreement, the provider is not entitled to any other compensation from the consumer except for non-refundable fees that may have arisen as a result of public administration services related to the agreement offered," states the draft law "On Consumer Credit Agreements."
Referring to the "microcredit scandal", the Democratic MP, through her legal initiative, proposes that the data and conditions during the lending process be clarified and specified. If this does not happen, lending institutions will be fined up to 300 thousand lek.
"Credit providers must include a summary table of costs and payment obligations, which includes all costs to the consumer, including the amounts of the principal obligation and interest under the current terms of the loan," states the draft law "On Consumer Credit Agreements."
The new legal basis also obliges lending institutions to clearly and timely notify customers in the event of a change in interest rates, writes A2 CNN.
"When borrowing rates are variable, the creditor will have the obligation to notify consumers of possible changes in interest rates and how these will affect the total amount payable after the change, before the change enters into force," states the draft law "On Consumer Credit Agreements."
With the help of the World Bank, the Bank of Albania is also drafting a new legal framework that provides for tightening lending conditions, writes A2 CNN. (A2 Televizion)
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