Protection of Financial Service Consumers Law to be amended

BELGRADE - Governor of the National Bank of Serbia (NBS) Jorgovanka Tabakovic said Monday that the Bill amending and modifying the Law on Protection of Financial Service Consumers will equalize the rights of entrepreneurs and farmers with the rights and obligations of natural persons.

The protection for the use of financial services, such as loan, deposit, leasing and payment services, will be expanded to cover entrepreneurs and farmers, Tabakovic said, presenting the proposed amendments to the Serbian MPs.

The amended law will ensure a more efficient protection of the consumers of financial services and increase the responsibility of financial institutions, the NBS governor said.

Tabakovic noted that the amendments will cut the time period envisaged for the financial institutions to respond to consumers' complaints, introduce penalties for lack of procedural discipline, increase NBS' supervising authorities, promote the mediation procedure before the NBS, and increase fines.

The new law will expand the NBS authority to cover unfair business practices used by banks, Tabakovic added.

The difficulties perceived with the implementation of the law so far could be addressed more easily, as, for example, banks will be able to reduce interest rates without any administrative obligations, she said.

Tabakovic warned that all banks that approved loans indexed to one foreign currency rate and calculated annuities based on a different, higher rate will be obligated to use the same type of exchange rate for the approved loan and for the annuity calculation.

Presenting the Bill amending and modifying the Law on Foreign Exchange Transactions, Tabakovic said that as of October 1, 2015, Serbian residents...