The implementation of the new regulatory framework in the area of consumer lending, established by the Law on Consumer Loans, is being implemented with good preparation of the banking sector, assessed representatives of the Central Bank of Montenegro (CBCG) and commercial banks.
The Central Bank of Montenegro held a series of meetings with representatives of all commercial banks with the aim of providing additional support for the quality and uniform implementation of the new regulatory framework in the area of consumer lending.
The focus of the meetings was on presenting the banks' experiences from previous practice, considering operational aspects of implementation, and further clarifying open issues.
During the meetings, it was assessed that the implementation of the new legal solution, which began in November last year, is being implemented with good preparation of the banking sector, with expected operational adjustments accompanying the implementation. In the constructive dialogue, the importance of the innovations brought by the law towards stronger improvement of consumer protection was particularly emphasized.
"The Consumer Credit Act introduced for the first time a legal upper limit on the effective interest rate on consumer loans, thereby limiting the total borrowing costs of citizens," the statement said.
Also, the processing fee and early repayment of consumer loans secured by real estate were abolished, and the assessment of creditworthiness was stricter, with further improved standards of transparency and consumer information.
"The protection of consumers facing financial difficulties has also been further improved through the obligation of creditors to take reasonable measures to reach an agreement before initiating enforcement proceedings," the statement said.
Within its competences, the Central Bank of Montenegro will continue to further improve cooperation and uniform market practices through proactive expert support, as well as through quality initiatives, thematic meetings and other forms of communication with the banking sector, in the coming period, with the aim of ensuring full and consistent implementation of the Law on Consumer Credit and further strengthening consumer protection in Montenegro.
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