FINANCIAL SERVICES CONSUMER PROTECTION ACT("Off. Herald of RS", Nos. 36/2011 and 139/2014) |
GENERAL PROVISIONS
Article 1
This Act shall govern the rights of consumers of financial services provided by banks, financial leasing providers and sellers, as well as the conditions and manner of realization and protection of such rights.
Article 2
For the purpose of this Act, the following definitions shall apply:
1) Financial services shall mean banking services, financial leasing and financial deal services;
2) Banking services shall mean services provided by the bank to consumers based on credit agreement, deposit agreement, agreement on issuing and use of credit cards, agreement on authorized overdraft facility, as well as other services provided by the bank in accordance with law;
3) Financial leasing (hereinafter: lease) shall be an operation the meaning of which is established by the act governing financial leasing;
4) Insurance services, i.e. services of companies managing voluntary pension funds shall mean the services prescribed by the act governing the operation of insurance companies, i.e. governing voluntary pension funds and pension plans;
5) Financial deal shall mean sale where the price is repaid in installments or other form for financing the customer that has the same economic essence, offered by the seller, which implies deferred payment of debt over a certain period;
6) Banking service provider (hereinafter: bank) shall mean the bank in terms of the law governing banks;
7) Lessor and lease object shall have the meaning as prescribed by the law governing financial leasing;
8) Seller shall mean a legal or natural person who is engaged in sale by means of a financial deal and acts on the market within its business or for other commercial purpose;
9) Financial service consumer (hereinafter: consumer) shall mean a natural person who uses or has used financial services or has addressed the financial service provider in order to use financial services, and in particular:
1) A natural person who uses, has used or intends to use such services for the purposes which are not intended for his/her business or other commercial activity;
2) A sole trader, in terms of the law governing companies;
3) A farmer, as holder or member of a family agricultural household in terms of the law governing agriculture and rural development;
10) Credit agreement shall have the meaning as established in the law governing contracts and torts;
11) Deposit agreement shall have the meaning as established in the law governing contracts and torts;
12) (Deleted)
13) Revolving credit agreement shall mean a credit agreement enabling the consumer to use once approved amount of credit, over a given period of time, a number of times in the amount of unused or returned funds, where the unused part of credit is increased for the amount of repayments of such credit;
14) (Deleted)
15) Credit card shall mean a payment card enabling its user to withdraw cash and pay for goods and services on credit;
16) (Deleted)
17) Authorized overdraft facility shall mean the agreed amount that a bank makes available to a consumer having a current account;
18) Unauthorized overdraft facility shall mean the amount of funds used in breach of the contract that the consumer who has a current account has with the bank;
19) Linked credit agreement shall mean an agreement that serves exclusively to finance procurement of specific goods or service and that along with an agreement on sale of such goods or service form a commercial unit; a commercial unit shall be deemed to exist where the creditor uses the services of the supplier for the purpose of conclusion of the credit agreement, or where the goods, i.e. service that are subject to procurement are explicitly specified in such agreement;
20) Nominal interest rate shall mean the interest rate expressed as a fixed or variable percentage applied on an annual basis to the amount of credit drawn, i.e. the net amount of lease financing, i.e. the deposit received;
21) Annual effective interest rate and effective lease fee rate (hereinafter: effective interest rate) shall express the total costs of credit and other financial services paid, i.e. received by the customer, whereby such costs are expressed as an annual percentage of the total cost of such services;
22) Repayment, i.e. payment schedule shall mean a table-style overview of all chronologically presented money flows, aimed at informing the consumer, so as to keep up to date with obligations related to credit, i.e. lease agreement, i.e. their claims related to deposit agreement;
23) Durable medium shall be a medium enabling the customer to preserve data related to him, to access such date and reproduce them in an unchanged form over the period corresponding to purpose of safekeeping;
24) Professional care shall mean increased attention and skill reasonably expected in legal operations from the financial service provider when dealing with customers in accordance with the rules of the profession, good business practice and principle of fairness and conscientiousness.
25) Representative example shall mean an example specifying all elements necessary for presenting the conditions under which a given financial service is used.
Article 3
Provisions of this Act shall not apply to:
1) Lease agreements where the possibility of the lessee to acquire ownership on the lease object is not stipulated;
2) Credit agreements, i.e. financial deals concluded in the mediation procedure before the court or other state authority;
3) Credit agreements, i.e. financial deals where the payment of existing debt is deferred without consideration;
4) credit agreements, i.e. financial deals granted free of interest or any other charges and credit agreements, i.e. financial deals under the terms of which the credit has to be repaid within three months, i.e. deferred payment is agreed for up to three months and only insignificant charges are payable;
5) Credit agreements, i.e. financial deals secured by a pledge on movables, if the obligation of the consumer is limited to the value of the object pledged;
6) Agreements on financial deals with continuous execution whereby the seller assumes the obligation to supply a certain kind of goods i.e. provide a certain service to the consumer over a longer period, and the consumer assumes the obligation to pay the price thereof in installments over the period of goods supply, i.e. service provision.
Article 4
Legislative provisions governing bank operations, financial leasing and personal data protection, as well as the provisions of the law governing contracts and torts shall apply to any consumer protection issues that are not specifically regulated by this Act.
Provisions of the law governing payment services shall apply to the protection of users of payment services and holders of electronic money, and the protection of credit users and authorized overdraft facility provided by the payment services providers and electronic money issuers, as well as the protection of the credit cards’ users shall be additionally regulated by the provisions of this Act pertaining to credits and authorized overdraft facilities, i.e. credit cards.
Provisions of this Act governing rights and obligations of the bank as the person granting credit and authorized overdraft facility and as the credit card issuer shall additionally apply to other providers of payment services and issuers of electronic money in cases where the credit services or account overdraft approval, i.e. credit cards’ issuing, are provided in compliance with the law governing payment services.
Notwithstanding paragraph 2 of this Article, provisions of this Act pertaining to protection of consumers’ rights and interest shall apply to the redress procedure for protection of rights and interests of the payment services’ users and electronic money holders, including the users of credit and authorized overdraft facility granted by the payment service providers and electronic money issuers and credit card users.
Main Principles of Consumer Protection
Article 5
Main principles of consumer protection, in terms of this Act, shall be the following:
1) Right to equal relation with the financial service provider,
2) Right to protection from discrimination,
3) Right to be informed
4) Right to the obligation arising from the agreement to be specified or specifiable,
5) Right to protection of rights and interests.
Article 6
Financial services must be advertised in a clear and understandable manner, and such advertisements may not include incorrect information, i.e. information that may be misleading in regards to the conditions under which the customer uses such services.
The National Bank of Serbia may prescribe detailed conditions of financial services advertising.
Article 7
A financial service agreement (hereinafter: agreement) shall be drawn up on paper or on another durable medium.
All the contracting parties shall receive a copy of the agreement.
The agreement may not include provisions whereby the consumer waives his rights guaranteed by this Act.
Financial service provider shall keep in consumer records the agreement and the agreement documentation relating to the consumer (offer, draft agreement, overview of mandatory elements, schedule of repayment/payment, annex to the agreement with a new repayment schedule, notices, warnings, etc.).
Article 8
Contractual obligation must be specified, i.e. specifiable.
A pecuniary contractual obligation shall be specifiable as to its amount if it depends on the contracted variable elements, i.e. both variable and fixed elements, where the variable elements shall be those officially published (reference interest rate, consumer price index etc.).
A pecuniary contractual obligation shall be specifiable in time if the stipulated elements may be used for establishing when it becomes due.
Elements referred to in paragraphs 2 and 3 of this Article must be of such nature that they cannot be affected by unilateral will of either contracting party.
A bank, i.e. lessor shall display a prominent notice on the value of the contracted variable elements referred to in paragraph 2 of this Article on a daily basis at their business premises where they offer services to the consumers and on the website.
Agreements may not include a norm referring to business policy and other acts of the financial services provider in relation to such elements as are prescribed as mandatory elements in an agreement by this Act.
Financial service provider shall establish the pecuniary contractual obligation in the manner prescribed by the provisions of this Article.
Article 9
In terms of this Act, the general business policy of the financial service provider shall be the business policy applied to consumers, conditions for establishing the relation between the consumer and financial service provider and the communication procedure between them, as well as conditions for performance of business between the consumer and the service provider.
By general business policy the financial service provider shall ensure application of good business customs, good business practice and fair relation towards the consumer, as well as compliance of such policy with regulations.
General business policy shall also comprise the bylaws determining fees and other costs charged by the financial services provider to the consumers (e.g. tariff of fees).
Article 10
Financial service provider shall be obliged, in a visible place at the business premises where it offers services to the consumers and on the website, to ensure that the consumer becomes acquainted with the general business policy in Serbian language, and no later than 15 days before they start to apply.
Financial service provider shall provide the consumer with adequate explanations and instructions relating to application of the general business policy in connection with a specific financial service, as well as to submit such policy to them, at their request, in writing or another durable medium, without delay.
Annual Effective Interest Rate
Article 11
Effective interest rate shall mean a discount rate that equalizes, on annual basis, the present values of all money flows, i.e. the present values of all pecuniary incomes with the present values of all pecuniary expenses on the grounds of using financial services which are known at the time such rate is being expressed.
Money flows referred to in paragraph 1 of this Article shall include:
- All repayments and payments for credit/lease/deposit;
- Costs paid by the financial services user (e.g. interest, fees, taxes and the like), i.e. the benefits they receive (interest and other unconditional benefits);
- Costs related to ancillary services that are prerequisite for using the financial service, i.e. using it in a specific manner (e.g. cost of life, property or personal insurance etc.).
If the opening of a current account is prerequisite for using the financial service, money flows referred to in paragraph 1 of this Article shall include the costs of opening and maintaining such current account, as well as all costs related to execution of such money flows.
Money flows referred to in paragraph 1 of this Article shall not include:
- costs arising from the failure to discharge contractual obligations;
- Costs related to the purchase of goods that arose regardless of whether the payment was effected in cash or in other manner.
The calculation of the effective interest rate shall be based on the following assumptions:
- The financial service agreement shall remain in force during the stipulated period;
- The contracting parties shall discharge their contractual obligations and do so within time limits specified in the agreement;
- Nominal interest rate and other costs shall remain unchanged for the duration of agreement.
The bank and the lessor shall be under the obligation to calculate the effective interest rate in a uniform, prescribed manner so as to enable comparison of offers of the same type from other financial service providers.
National Bank of Serbia shall determine in more detail the conditions and manner of calculating the effective interest rate.
Article 12
The consumer shall have the right to withdraw from the concluded credit agreement, authorized overdraft facility agreement, agreement on issuing and use of credit card, lease agreement and financial deal - within 14 days from the day of conclusion of the agreement, without giving any reason for doing so.
In cases of credit agreements secured by a mortgage, as well as in cases of agreements the objective of which is the purchase, i.e. the financing of the purchase of an immovable property, the consumer may exercise his right of withdrawal provided that the credit, i.e. financing were not used.
When exercising the right of withdrawal referred to in paragraph 1 of this Article, and before the expiry of the time limit referred to in the same Article, the consumer shall be under the obligation to inform the bank, the lessor or the seller thereof, in the manner in which the receipt of such information is confirmed, where the date such notification is received is deemed to be the date of withdrawal. Such notice shall be served on paper or other durable medium.
Customer who withdraws from credit agreement, authorized overdraft facility agreement and agreement on issuing and use of credit cart shall pay to the bank promptly and no later than 30 days from the day of dispatch of notification referred to in paragraph 3 of this Article, the capital from the main operation and the interest accrued thereon.
Customer who withdraws from a lease agreement with an option to purchase the lease object shall be under the obligation to return the lease object to the lessor immediately upon dispatch of notification referred to in paragraph 3 of this Article. The customer from this paragraph shall be under the obligation to compensate the damage promptly or no later than 30 days from the day of dispatch of notification referred to in paragraph 3 of this Article if the value of the lease object has been reduced and to pay the stipulated interest rate from the main agreement from the day of conclusion of the agreement until the day the interest rate is paid.
Customer who withdraws from a financial deal with a seller shall be under the obligation to return the object of the sale to the seller promptly. The customer from this paragraph shall be under the obligation to compensate the damage to the seller promptly or no later than 30 days from the day of dispatch of the notification referred to in paragraph 3 of this Article if the value of the object of sale has been reduced and pay the stipulated interest rate from the main agreement from the day of conclusion of the agreement until the day the interest rate is paid.
Service providers shall not be entitled to any other charge, except for those referred to in paragraphs 4 to 6 of this Article and to costs arising with the competent authorities, and, in case referred to in paragraph 2 of this Article - the bank shall have the right to compensation of real costs it had in relation to the conclusion of the credit agreement.
Customer must be informed of the real costs referred to in paragraph 7 of this Article before the credit agreement is concluded.
If an ancillary service relating to the financial services referred to in paragraphs 1 and 2 of this Article is provided by the financial service providers referred to in paragraph 3 of this Article or by a third party on the basis of an agreement between the third party and the financial service provider, the consumer shall no longer be bound by the ancillary service agreement if the consumer exercises his right of withdrawal from the main credit agreement in accordance with this Article
Article 13
Consumer shall have the right to obtain from the financial service provider, on paper or other durable medium, free of charge, information, data and instruction related to his contractual obligation with the service provider, in the manner and time limits specified by the agreement.
Minimum Professional Competence Requirement
Article 14
Employees engaged on selling financial services or giving advice to consumers must have adequate qualifications, knowledge and experience, professional and personal qualities, act in accordance with good professional customs and professional ethics, respect the person and the integrity of the consumer, and shall be under the obligation to inform the consumer, fully and correctly on the conditions for using such services.
Financial service providers shall enable that all employees engaged in selling such services or offering such advice have adequate qualifications and ensure their training.
BANKING SERVICES AND LEASE
PRE-CONTRACTUAL INFORMATION
Article 15
When an advertisement concerning deposit and credit services and lease operations indicates an interest rate or any figures relating to the cost or income, the bank and lessor shall be under the obligation to specify in a clear, concise and precise way by means of a representative example:
- Type of deposit/credit/lease object;
- Amount and variability of the annual nominal interest rate;
- Effective interest rate;
- Currency in which the deposit/credit/lease is contracted;
- Duration of the deposit/credit/lease;
- Criteria for indexing the deposit/credit/lease;
- Total amount of deposit/credit;
- All costs payable by the consumer.
When advertising lease, the lessor shall be under the obligation to specify the following data, in addition to data referred to in paragraph 1 of this Article:
- Gross purchase value of the lease object, amount of down payment and the amount of net financing;
- Number and amount of leasing fee installments, as well as the period in which installments become due (monthly, trimonthly and the like).
In advertisements referred to in paragraphs 1 and 2 of this Article, the amount of effective interest rate should be specified, i.e. written so as to be more prominent than other elements.
Advertisement referred to in paragraphs 1 and 2 of this Article shall be advertisement in terms of the law governing advertising - advertising in the media, in premises of the bank and the lessor (brochures, leaflets and the like), i.e. on the website.
Article 16
If for the conclusion of credit agreement, authorized overdraft facility agreement, agreement on issuing and use of credit card or lease agreement is also compulsory to conclude an agreement regarding ancillary services (an insurance agreement in particular), while the cost of the ancillary service cannot be determined in advance - the existence of such obligation shall be stated in a clear, concise and prominent way, together with the effective interest rate.
If a credit, an authorized overdraft facility, a credit card or lease with the nominal interest rate of 0% is advertised, all terms and conditions for such credit/authorized overdraft facility/credit card/lease granting shall be specified as well.
When advertising, it shall be prohibited to use expressions representing the credit, authorized overdraft facility, credit card or lease as free or any similar terms if approval of such credit/ authorized overdraft facility/credit card/lease is conditioned by conclusion of another agreement or anything constituting a cost for the consumer or creating another obligation.
2. Informing the Consumer in Pre-Contractual Phase
Article 17
A bank and lessor shall provide to the consumer information and adequate explanations about terms and conditions referring to the agreement on deposit, credit or lease, agreement on authorized overdraft facility, i.e. agreement on issuing and use of credit card for which the consumer has showed interest (hereinafter: the offer), in the manner that will enable the consumer to compare the offers of individual providers of the same services and to assess whether such terms and conditions are adequate to their needs and financial standing, but which shall not be misleading for the consumer.
Bank and lessor shall offer a service to the consumer in dinars, except when the consumer requests such service to be offered in dinar counter value of a foreign currency i.e. in a foreign currency, in compliance with the laws governing the foreign exchange operations. The bank and the lessor shall instruct the consumer in writing about the risks that they undertake in cases when the service is offered in dinar counter value of a foreign currency, i.e. in a foreign currency.
The National Bank of Serbia shall prescribe the currency in which a bank i.e. a lessor may offer and approve, i.e. index a credit, lease and credit card to the consumer - if the consumer should request such service to be offered in dinar counter value of the foreign currency, i.e. in a foreign currency in compliance with paragraph 2 of this Article.
Offer shall be written on the prescribed form, paper or other durable medium and shall include:
1) Type of service;
2) Business name and geographic address of the service provider;
3) Total amount of deposit, credit, i.e. financial leasing operation and terms of use;
4) Currency in which the deposit/credit/lease is agreed;
5) Duration of agreement;
6) Amount and variability of nominal interest rate;
7) elements used for determining the stipulated nominal interest rate, their amount, as well as the periods, conditions and procedure for changing it, and the fixed element, if stipulated;
8) Effective interest rate and the total amount payable by the consumer, i.e. to be paid to the consumer, expressed by means of a representative example indicating all the elements for calculating such amount;
9) Amount and number of credit, i.e. of leasing fee installments and the periods in which they become due (monthly, trimonthly and the like.);
10) Type and amount of all payments to be made by the consumer, specifying whether they are fixed or variable and, if variable - the periods and the procedure for change;
11) (Deleted)
12) The obligation, if any, to enter into an ancillary service agreement relating to the credit, i.e. lease agreement (an insurance policy etc.), where the conclusion of such agreement is compulsory in order to obtain the credit on the terms and conditions marketed;
13) Interest rates applied in case of default;
13a) The conditions and procedure for termination of an agreement, particularly with regard to offering of the agreements concluded for an indefinite period of time;
14) A warning regarding the consequences of missing payments;
15) Collaterals;
16) The consumers right of withdrawal, terms and procedure for withdrawal and related costs;
17) Right of early repayment of credit/lease and use of credit card and the right of bank, i.e. the lessor to compensation, and the amount of such compensation;
18) Information that the consumer is entitled to be informed about the results of a database consultation carried out for the purposes of assessing his creditworthiness and that such information is free of charge in the case referred to in Article 18, paragraph 3 of this Act;
19) The right of consumer intending to conclude the agreement with the bank, i.e. the lessor - to be supplied, free of charge, with a copy of the draft credit agreement, provided that the bank/lessor is at the time of the request willing to proceed to the conclusion of such agreement with the consumer;
20) The period of time during which the bank/lessor is bound by the pre-contractual information.
In addition to information referred to in paragraph 4 of this Article, the offer relating to a lease service shall include:
1) Gross purchase value of the lease object;
2) Amount of front payment;
3) required insurance of lease object;
4) Costs of registering the agreement with the Business Registers Agency paid by the consumer after the execution of the lease agreement;
5) Conditions for executing the right of purchase of the lease object/extension of the lease agreement.
Offer for concluding an authorized overdraft facility agreement shall include elements referred to in paragraph 4 items 1, 2, 3, 5, 6, 7, 8, 10, 13, 18, 19 and 20 of this Article, as well as terms and procedure for termination of such agreement and indication that the consumer may be requested to repay the amount of overdraft.
Bank, i.e. lessor shall be under the obligation to inform the customer intending to conclude an agreement with them of his right to be supplied, on request and free of charge, with a copy of the draft credit agreement - as a proposal for its conclusion.
Notwithstanding paragraph 4 of this Article, information supplied in pre-contractual phase in conclusion of an agreement on issuing and use of credit card shall include information i.e. elements referred to in Article 22 of this Act, and in addition to these, the consumer shall be supplied with complete information that the payment service provider is obliged to supply in that phase in compliance with the law governing payment services.
Prior to concluding an agreement on credit or an agreement on issuing and use of credit card, the bank shall supply the offer i.e. information on and draft of such agreement to the person intending to provide collateral (surety, promissory note, administrative ban, etc.), except in cases of credits where the user is at the same time the owner of the object of lien i.e. mortgage or where they shall acquire ownership of such object on the basis of the sale transaction for the realization of which such credit would be approved.
If the terms of financing of a lessor are presented by a third party - the lessor shall be under the obligation to conclude a business cooperation agreement with such persons, whereby the third party undertakes the obligation to present such terms in the same manner as the lessor.
National Bank of Serbia shall prescribe the appearance and content of the forms on which the offer is supplied to the consumer, and may also prescribe in greater detail the manner in which the bank and the lessor are obliged to indicate to the consumer, in writing, the risks assumed where a service is provided in the dinar counter value of foreign currency, i.e. in foreign currency, as well as the content of such indication.
3. Obligation to Assess Creditworthiness
Article 18
Prior to concluding an agreement on credit, agreement on authorized overdraft facility, agreement on issuing and use of credit card or agreement on lease, the bank, i.e. the lessor shall be under the obligation to assess the consumer’s creditworthiness on the basis of information obtained from the consumer and on the basis of a consultation of a relevant database, based on a signed consent of the consumer.
If the contracting parties agree to increase the credit indebtedness of the consumer - the bank or the lessor shall be under the obligation to re-assess the creditworthiness of such consumer.
If the request for credit, authorized overdraft facility, credit card issuing or lease is rejected based on information obtained from the database referred to in paragraph 1 of this Article - the bank, i.e. the lessor shall be under the obligation to inform the consumer immediately, free of charge and in writing on the information from such database.
Database referred to in paragraph 1 of this Article shall consist of data for the processing of which the consumer had previously provided their written consent, and in particular of data on their indebtedness with financial institutions and regularity in repayment of obligations from their use of the financial services.
The bank and the lessor shall regularly deliver and update data kept in such database and they shall be held responsible for the accuracy of such data, for the purpose of providing for the reliability of the database referred to in paragraph 1 of this Article.
CONTENT OF AGREEMENT ON BANKING SERVICES AND LEASE
Article 19
Credit agreement shall include the following mandatory elements:
1) Type of credit;
2) The period for which the credit is approved;
3) Business name, name and geographic address of the contracting parties;
4) Amount of credit approved and conditions for withdrawing assets;
5) For credit indexed to a foreign currency - the currency being indexed, indication that upon approval and repayment of credit the official middle exchange rate is applied, and the date of calculation;
6) The amount of nominal interest rate specifying whether it is fixed or variable and, if variable, the elements used to determine it (reference interest rate, consumer price index etc.), their amount at the time the agreement is concluded, periods in which it will change, as well as the fixed element, if stipulated;
7) Effective interest rate and the total amount payable by the consumer calculated on the day the agreement is concluded;
8) The credit repayment schedule and the right of the consumer to be supplied with such schedule free of charge for the time of duration of agreement, in case of changes to repayment schedule, i.e. once a year if there was no change; if the interest rate and costs are paid whilst the capital is not being paid - the credit repayment schedule should only include time limits and conditions of payment of interest rate and costs;
9) Method applied when calculating the interest rate (compound, proportional and the like);
10) Information on interest rate applied in case of default in accordance with this Act;
11) Warning regarding consequences in case of missing payment, conditions, procedure and consequences of termination, i.e. rescission of credit agreement in accordance with the law governing contracts and torts, as well as information on terms and manner of assigning claims in case of failure to discharge obligations;
12) Type and amount of all charges payable by the consumer, specifying whether they are fixed or variable and if they are variable - the periods in which the bank will change them, as well as type and amount of other costs (taxes, fees to competent authorities and the like);
13) Types of collaterals, possibility of changing them during the credit repayment period, as well as conditions for activating such assets in case of failure to discharge obligations;
14) Terms and procedure for early repayment of credit and the amount of related charge;
15) Consumers right to withdraw from agreement, terms and procedure for withdrawal;
16) Right to complaint and possibility to initiate the mediation procedure in order to resolve the matter under dispute out of court;
17) Geographic address of the National Bank of Serbia, as the authority exercising supervision over banks.
Linked credit agreement, in addition to elements referred to in paragraph 1 of this Article, shall also include the specification of goods or service, their price in cash and notification on the termination of validity of ancillary agreement if the right of withdrawal is exercised.
In case of credit agreement - interest rate, charges and other costs, if applicable, must depend on stipulated elements that are officially published (reference interest rate, consumer price index and the like) the nature of which is such that the change in their value cannot be influenced by unilateral will of either contracting party.
When concluding the credit agreement, the bank shall supply the consumer, together with the agreement, with a copy of the repayment schedule for the credit and overview of mandatory elements of credit containing basic information on credit.
After having concluded an agreement on credit, the bank shall additionally supply the person providing collateral (hereinafter: collateral provider) with a copy of such agreement with repayment schedule and an overview of mandatory elements, unless such credit user is at the same time the collateral provider or unless they shall acquire ownership on the lease object under mortgage or lien based on a sales transaction for the realization of which such credit had been approved.
2. Agreement on Authorized Overdraft Facility
Article 20
Agreement on authorized overdraft facility shall include elements referred to in Article 19, paragraph 1 of this Act, save for the elements referred to in items 5) and 8) of the same paragraph, as well as data on specific cases when the consumer may be required to repay completely such overdraft and the indication on consumer’s right to early repayment of such overdraft at any time without any compensation.
In cases of agreements referred to in paragraph 1 of this Article - the interest rate, charges and other costs, if changeable, must depend on the stipulated elements that are officially published (reference interest rate, consumer price index) the nature of which is such that the change in their value cannot be influenced by unilateral will of either contracting party.
When concluding the agreement referred to in paragraph 1 of this Article, the bank shall supply the consumer with a copy of an overview of mandatory elements of authorized overdraft facility, containing basic information on overdraft facility. The bank shall keep the second copy of such overview in its records.
Following conclusion of an agreement on authorized overdraft facility, the bank shall additionally supply the person providing collaterals with a copy of such agreement and with an overview of mandatory elements of such authorized overdraft facility, except in cases where the consumer is at the same time the person providing collaterals.
Article 21
Lease agreement shall include the following mandatory elements:
1) Gross purchase value of the lease object (sum of value by which the lessor was acquired ownership on the lease object and the calculated value added tax);
2) Amount of down payment (amount paid by the consumer to the lessor, which is expressed in relation to the gross purchase value of the lease object);
3) Amount of net financing (difference between the gross purchase value of the lease object and down payment);
4) Number and amount of installments of the leasing fee, as well as the period when installments become due;
5) Remaining value of the lease object (a portion of the net financing amount that may be stipulated, which is not paid by the consumer in installments but in lump sum after the expiry of the period for which the agreement was concluded if the agreement stipulates the right of the consumer to purchase the lease object);
6) For lease indexed to a foreign currency - the currency being indexed, indication that upon approval and repayment of lease the official middle exchange rate is applied, and the date of calculation;
7) The amount of nominal annual interest rate specifying whether it is fixed or variable, and, if variable - the elements used to determine it (reference interest rate, consumer price index etc.) their amount at the time the agreement is concluded, the period in which they will change, and the fixed element, if stipulated;
8) Effective interest rate and total amount payable by the consumer calculated on the day the agreement is concluded;
9) Information on the obligation to insure the lease object;
10) Right of purchasing the lease object/extending the agreement;
11) Conditions and procedure for early repayment and related charges;
12) Method applied when calculating the interest (compound, proportional etc.);
13) Interest rate applied in case of default in accordance with this Act;
14) Type and amount of all charges payable by the lessee, specifying whether they are fixed or variable, and, if variable - the periods in which the lessor will change them, as well as the type and amount of other costs (taxes, fees for competent authorities etc.);
15) Types of collaterals, possibility for changing them during the lease repayment period, as well as conditions for activating such assets in case of failure to discharge obligations;
16) Information of the lessor’s right to sell the lease object;
17) Conditions, procedure and consequences of rescission of lease agreement, as well as information on conditions and manner of assigning the claim in case of failure to discharge the obligations;
18) Consumers’ right to withdraw from agreement, terms and procedure for doing so;
19) Right to complaint and possibility to initiate mediation in order to resolve the matter under dispute out of court;
20) Address of the National Bank of Serbia as the authority exercising supervision of the lease providers.
In cases of lease agreements - the interest rate, charges and other costs, if variable, must depend on stipulated elements that are officially published (reference interest rate, consumer price index etc.) the nature of which is such that their value cannot be affected by unilateral will of either of the contracting parties.
When concluding the lease agreement, the lessor shall, together with the agreement, supply the consumer with a copy of the lease repayment schedule and overview of mandatory lease elements containing basic information on the lease.
4. Agreement on Issuing and Use of Credit Card
Article 22
In addition to the elements of the framework agreement prescribed by the law governing payment services, an agreement on issuing and use of credit card shall include the following mandatory elements:
1) Approved credit amount that the consumer may use during a specified period (the credit limit);
2) Indication of the foreign currency, if the credit limit is approved and calculated in a foreign currency;
3) Maturity date and percentage of the minimum monthly repayment obligation;
4) Minimal interest rate amount with specification on whether the interest rate is fixed or variable, and, if it is a variable interest rate, the elements based on which it shall be determined (reference interest rate, consumer price index, etc.), amount thereof at the time of agreement conclusion, periods in which these shall be modified, as well as the fixed element, if agreed;
5) Effective interest rate;
6) Method applied in calculation of interest (compound, proportional, etc.);
7) Information about the interest rate applied in case of default in compliance with this Act;
8) Types of collaterals, possibility to replace them during credit repayment period, as well as the conditions for activation of such collaterals in case of default;
9) Consumer’s right to withdraw from agreement, as well as conditions and manner of such withdrawal, in compliance with Article 12 of this Act;
10) Right to early repayment of obligations on credit card, with no compensation;
11) Any obligation to conclude an agreement on ancillary services relating to the agreement on issuing and use of credit card (for example, insurance agreement).
Following conclusion of an agreement on issuing and use of credit card, the bank shall supply the person providing collaterals with a copy of such agreement with an overview of mandatory elements, except in case where the credit card user is at the same time the person providing such collaterals.
Article 23
Deposit agreement shall include the following mandatory elements:
1) Type of deposit and the period for which the bank receives deposit;
2) Amount of funds the bank receives for deposit;
3) Currency in which the consumer deposits and the bank pays funds in regards to the deposit (dinar and the like) and, in case of deposit with a stipulated currency clause - and the type of currency exchange rate applied when depositing, i.e. paying the deposit (official middle exchange rate), as well as the date of calculation;
4) Payment schedule;
5) Amount of nominal annual interest rate, with an indication of the consumers’ obligation to pay tax, if applicable;
6) Effective interest rate and the total amount payable to the consumer calculated on the day the agreement is concluded;
7) Unconditional benefits offered by the bank in relation to the deposit;
8) Variability of nominal interest rate (fixed or variable);
9) Elements used to determine the stipulated nominal interest rate, their amount at the time the agreement is concluded and period in which they will be changed, as well as the fixed element, if stipulated;
10) Method applied to calculate interest rate (compound, proportional and the like);
11) Procedure and terms under which the consumer may dispose of the funds deposited;
12) Type and amount of all charges payable by the deponent, specifying whether they are fixed or variable, and if variable - the periods in which the bank will change them, as well as the type and amount of other costs (taxes, fees for competent authorities etc.);
13) Conditions and procedure for automatic extension of deposit period;
13a) Conditions and manner of terminating the agreements concluded for an indefinite period of time;
14) Amount of insured deposit;
15) Right to complaint and possibility to initiate mediation procedure so as to resolve the matter at dispute out of court;
16) Geographic address of the National Bank of Serbia as the authority exercising supervision over banks.
In cases of deposit agreements - charges and other costs, if variable, must depend on the stipulated elements that are officially published (reference interest rate, consumer price index etc.). The nature of which is such that their value cannot be influenced by unilateral will of either party.
When concluding the deposit agreement, the bank shall deliver, together with the agreement, a copy of a deposit payment schedule, as well as an overview of mandatory elements of deposit, containing basic information on the deposit.
In case of automatic extension of deposit - the bank shall be under the obligation to inform the consumer, 15 days before the expiry of the period of deposit at the latest, of the period to which the deposit is extended and of the new interest rate, and the consumer shall have the right to rescind the agreement within 30 days from day of receiving such notification at the latest, free of charge and with payment of stipulated interest accrued for the expired deposit period.
Article 24
(Deleted)
6. Form for Repayment Schedule and Overview of Mandatory Elements of Credit/Lease/Deposit Payment
Article 25
National Bank of Serbia shall prescribe the form and content of the repayment schedule of credit/lease/deposit payment and of overview of mandatory elements of credit/lease/deposit payment.
7. Variable Nominal Interest Rate
Article 26
Variable nominal interest rate shall mean the interest rate the value of which depends on stipulated variable elements, i.e. on variable and fixed elements, where the variable elements shall mean those officially published (reference interest rate, consumer price index, etc.)
Nature of elements referred to in paragraph1 of this Article must be such that it cannot be influenced by unilateral will of either contracting party.
Bank, i.e. lessor shall be under the obligation to establish the variable nominal interest rate in the manner prescribed by provisions of this Article.
8. Agreement on Other Banking Services
Article 27
Agreements on granted avals, i.e. guarantees, vault agreement and agreements on other banking services shall include the type and amount of all charges and other costs payable by the consumer.
INFORMING CONSUMERS FOR THE DURATION OF THE AGREEMENT
1. Changes to Mandatory Elements of the Agreement
Article 28
If bank or lessor intends to change one of the mandatory elements of the agreement, they shall be under the obligation to obtain written consent of the consumer prior to applying such change. If the consumer does not agree with such change, the bank, i.e. the lessor may not unilaterally change the terms of agreement for such reason not may unilaterally withdraw or terminate the agreement.
Notwithstanding paragraph 1 of this Article, if the amount of fixed interest or fixed element of a variable interest rate, i.e. the amount of charges and other costs shall be modified for the benefit of the consumer - such modifications may be applied immediately and without their prior consent.
In case referred to in paragraph 2 of this Article, the bank, i.e. lessor shall immediately inform the consumer about changes referred to in the same paragraph on paper or another durable medium and they shall state the initial date of application of such change.
If the amount of fixed interest rate or fixed element of a variable interest rate is changed for the benefit of the consumer, in addition to the notification referred to in paragraph 3 of this Article the consumer shall be supplied with the modified credit or lease repayment schedule, i.e. deposit payment schedule.
2. Information on Variable Nominal Interest Rate
Article 29
If variable nominal interest rate has been stipulated - bank, i.e. lessor shall be under the obligation to inform the consumer on change of such interest rate on paper or other durable medium, before starting to apply the changed rate, i.e. periodically, in accordance with the agreement, and to specify in such notification the date when the changed rate starts to apply.
Bank - in cases of credit agreements, i.e. the lessor - in cases of lease agreements shall supply the consumer, together with the notification referred to in paragraph 1 of this Article, with the changed repayment schedule for the credit, i.e. the lease object, on paper or other durable medium.
Bank, i.e. lessor shall be under the obligation to make available to consumer, at request, schedules referred to in paragraph 2 of this Article on paper or other durable medium.
The obligation to notify referred to in paragraph 1 of this Article shall also exist in case of change of variable elements affecting the amount of other pecuniary obligations.
3. Change of Other Elements of Agreement
Article 30
Bank, i.e. lessor shall be under the obligation to timely inform the consumer of change of data that are not mandatory elements of agreement in terms of this Act.
4. Information on Statement of Account and Overrunning
Article 31
Bank i.e. lessor shall supply the consumer at least twice a year free of charge with the statement of their debt related to agreement on credit i.e. lease.
Statement referred to in paragraph 1 of this Article shall include the breakdown of principal, interest rates’, charges’, etc. amounts, as well as information about total debt amount on a specified date.
In case of an authorized overdraft facility, the bank shall supply the consumer at least once a month free of charge, on paper or another durable medium, with information - statement of all changes to their account, and at consumer’s request it shall supply such notification without delay with the right to charge the consumer for such information in accordance with the relevant acts of the bank.
Notification referred to in paragraph 3 of this Article shall mandatorily include the following information:
1) Account number;
2) Period to which the statement of account relates;
3) Date of change, description of change, as well as the amount and type of change (crediting or debiting of the account);
4) Previous and new balance, as well as the date when the statement of account is sent;
5) Applied nominal interest rate;
6) All calculated charges and costs.
In case of a considerable unauthorized account overdraft exceeding one month in duration, the bank shall immediately, on paper or another durable medium, notify the client about the following:
1) Overdraft amount;
2) Interest rate to be applied to the overdraft amount;
3) Any other charges, costs and contractual penalties.
Article 32
If the consumer fails to discharge his obligation in the stipulated time limit - rules on interest rate applied in case of debtor’s default prescribed by the law governing contracts and torts shall apply to the obligation due but not discharged.
If, for the duration of the agreement, circumstances arise that result in the consumer being in a serious financial difficulty, i.e. other relevant circumstances the consumer cannot affect - The bank, i.e. lessor may, at consumer’s request, declare a stay in repayment (moratorium) for a specified period, during which the bank, i.e. the lessor shall not calculate penalty rate for claim due but not discharged.
Bank, i.e. lessor may prescribe criteria for declaring a stay in repayment by their internal acts.
SPECIAL RIGHTS
1. Rights Related to Revolving Credit Agreement
Article 33
Consumer may terminate the revolving credit agreement in the usual manner free of charge and at any time, unless the parties have agreed on a period of notice that may not be longer than one month.
If agreed, the bank may terminate the revolving credit agreement by giving the consumer at least two months’ notice drawn up on paper or on another durable medium.
If agreed, the bank may, for objectively justified reasons (unauthorized use of credit, considerable deterioration of the consumer’s creditworthiness) terminate the consumer’s right to draw down funds, where the bank shall be under the obligation to inform the consumer of the reasons for it on paper or on other durable medium, where possible immediately or within three following days, unless the provision of such information is prohibited by other regulations.
2. Right to Application of the Same Type of Exchange Rate
Article 34
When approving credit indexed by a foreign currency, a bank shall be under the obligation to apply the official middle exchange rate, which is also applied during credit repayment.
Provision of paragraph 1 of this Article shall apply mutatis mutandis to the lease, i.e. deposit agreements.
3. Right to the Same Method of Calculation of Interest
Article 35
If the consumer is under the obligation to deposit a down payment with agreed interest rate as a prerequisite for obtaining credit, he shall have the right to have the method used to calculate the interest rate to such deposit apply to the calculation of the interest rate for the amount of credit approved, and the bank shall be under the obligation to enable the exercise of such right.
Article 36
The consumer shall be entitled at any time to discharge fully or partially his obligations under a credit agreement, in which case, he shall be entitled to a reduction in the total cost of the credit, such reduction consisting of the interest and the costs for the remaining duration of the agreement (early repayment).
If a fixed nominal interest rate was agreed in the early repayment period, and, in cases of credit agreements the object of which is the purchase of immovable property, if fixed or variable nominal interest rate was agreed, the bank may stipulate a compensation for early repayment.
The agreed compensation referred to in paragraph 2 of this Article may not exceed the loss linked to early repayment, where such compensation may not exceed 1% of the amount of credit repaid early, if the period of time between the early repayment and the time limit for discharge of credit obligation exceeds one year. If such period is shorter, the compensation may not exceed 0.5% of the amount of credit repaid early.
Bank may claim compensation referred to in paragraph 2 of this Article provided that the amount of early repayment exceeds 1,000,000 dinars over a period of twelve months.
Compensation referred to in paragraph 2 of this Article cannot be claimed:
- If the repayment has been made under an insurance agreement intended to provide a credit repayment guarantee;
- In the case of authorized overdraft facility or credit card;
- if the repayment falls within a period for which the variable nominal interest rate is agreed, except in regards to credits the object of which is to purchase immovable property.
Compensation referred to in this Article may not, in any case, exceed the amount of interest the consumer would pay during the period between early repayment and the time limit for discharging obligation from the credit agreement.
Loss referred to in this Article shall mean the difference between the interest rate agreed with consumer and the market interest rate at which the bank may place the amount obtained through premature repayment at the time of such repayment, including also administrative costs.
Provisions of this Article shall also apply to lease agreement.
Article 37
(Deleted)
5a Right to Recovery of Collaterals
Article 37a
Consumer, i.e. person providing collaterals shall be entitled to, upon complete repayment of consumer’s obligations towards the bank based on a specific agreement; recover the unused collaterals provided according to such agreement, including the collaterals registered with the relevant register.
The bank shall inform the consumer, i.e. person providing collaterals in writing that the consumer had repaid all their obligations based on a specific agreement within 30 days from the date of such repayment.
Notice referred to in paragraph 2 of this Article shall include information about the agreement based on which obligations towards the bank had been repaid, amount of obligations repaid, signature of responsible person and stamp of the bank.
Article 38
(Deleted)
Article 39
If a bank assigns the claim from credit to another bank, the consumer shall preserve all the rights agreed, as well as the right to plead against the other bank any defense which was available to him against the first bank, and the other bank may not put the consumer in a less favorable position than the position he would have been in had the claim not been assigned and this may not incur additional costs to the consumer.
Bank may assign a claim from one agreement only to one bank.
Bank shall inform the consumer on assignment referred to in paragraphs 1 of this Article.
Provisions of this Article shall apply mutatis mutandis to any claims from the agreement on lease, agreement on authorized overdraft facility and agreement on issuing and use of credit card.
Provider of payment services and issuer of electronic money who are not a bank may assign their claims from the agreement on credit, agreement on authorized overdraft facility or agreement on issuing and use of credit card only to a bank or to some other provider of payment services, i.e. to an issuer of electronic money.
Provisions of paragraphs 1 to 3 of this Article shall apply mutatis mutandis to the assignment referred to in paragraph 5 of this Article.
Provisions of the laws governing banks’ risk management shall apply to assignment of claims of the bank towards sole traders and farmers.
LINKED CREDIT AGREEMENTS
Article 40
Where the consumer exercises a right of withdrawal concerning an agreement on the purchase of goods, i.e. provision of services in accordance with the law governing consumer protection - they shall not be bound by a linked credit agreement.
In case referred to in paragraph 1 of this Article, the seller shall be under the obligation to inform the bank of withdrawal from the agreement on purchase of goods, i.e. provision of services no later than eight days, and the bank shall be under the obligation to return the repaid amount of credit with interest, paid by the consumer from the moment of withdrawal from such agreement, without delay and at the latest within 30 days from being informed of the withdrawal.
If agreement on purchase of goods, i.e. provision of services is concluded and credit based on linked credit agreement is not approved - the agreement on purchase of goods, i.e. provision of services shall be rescinded, unless the person to whom the credit was not approved decides for such agreement to remain in force.
Provisions of this Article shall apply mutatis mutandis to a lease agreement.
UNFAIR BUSINESS OPERATION AND UNJUST CONTRACTUAL PROVISIONS
Article 41
The National Bank of Serbia may determine whether a financial service provider had engaged in any unfair business operation or agreed unjust contractual provisions.
The National Bank of Serbia may determine circumstance referred to in paragraph 1 of this Article based on their own information, complaints, objections and information supplied by consumers or other interested parties, as well as based on other information available to them.
In determining whether a financial service provider had engaged in an unfair business operation or agreed unjust contractual provisions, the National Bank of Serbia shall apply mutatis mutandis the provisions of Article 43, paragraphs 3 to 6 and paragraph 8 of this Act.
If it should establish that a financial service provider had engaged in an unfair business operation or agreed unjust contractual provisions, the National Bank of Serbia shall order by a relevant Decision the suspension of such business operation i.e. ban the application and contracting of such provisions.
In case referred to in paragraph 4 of this Article, the National Bank of Serbia may additionally pronounce a fine ranging from RSD 200,000 to RSD 2,000,000, by applying mutatis mutandis the Article 45 of this Act.
Unfair business operation and unjust contractual provisions shall be interpreted in accordance with the meanings determined by the law governing consumer protection.
REALISATION OF PROTECTION OF CONSUMERS RIGHTS AND INTERESTS
1. Right to Complaint to the Financial Service Provider
Article 42
Consumer shall be entitled to complaint, in writing (hereinafter: the complaint), to the financial services provider if they are of the opinion that such provided had not comply with the provisions of this Act, other legal regulations governing such services, general business policy or good business practice relating to such services or contractual obligations from the agreement concluded with the consumer.
Consumer shall be entitled to complaint within three years from the date of the violation of their right or legal interest.
Consumer referred to in paragraph 1 of this Article shall additionally include the person providing collaterals.
Financial services provider shall supply the person submitting complaint a clear and understandable response to their complaint in writing within 15 days from the date of receipt thereof, and they shall additionally instruct the person submitting such complaint about their right to complaint to the National Bank of Serbia in compliance with Article 43 of this Act.
Notwithstanding paragraph 4 of this Article, if the financial services provider from the reasons that cannot be ascribed to their will should fail to supply their response to the complaint with the deadline referred to in the same paragraph, such deadline may be extended by a maximum of 15 days, and such provider shall inform the person submitting the complaint in writing thereof within 15 days from the complaint receipt date.
In the notification referred to in paragraph 5 of this Article, the financial services provider shall clearly and understandably state the reasons due to which they could not supply their response within 15 days from the complaint receipt date, as well as the final deadline for providing response in compliance with the same paragraph.
Financial services provider may not charge the person submitting a complaint with any compensation or any other costs for their activities based on the complaint.
Financial service provider shall provide an option of complaint submission on the business premises in which they offer their services to the consumers and on their website, i.e. the option for the consumer or person providing collateral to acquaint themselves with the complaint submission procedure and complaint resolution procedure.
The National Bank of Serbia shall prescribe in greater detail the complaint submission method, as well as the method for providing response to such complaint by the financial service provider.
1a Right to Complaint to the National Bank of Serbia
Article 43
Person submitting a complaint may, if they are not satisfied with the response provided to their complaint referred to in Article 42 of this Act or if such response had not been delivered to them within the deadline referred to in the same Article, prior to initiating a court proceedings, file a claim to the National Bank of Serbia, in writing (hereinafter: the claim), if they are of the opinion that the financial services provider had failed to comply with the provisions of this Act, other regulations governing such services, general business policy or good business practice relating to such services or obligations from the agreement concluded with the consumer, i.e. person submitting the complaint.
Person submitting complaint may file the claim within six months from the date of the receipt of response or upon expiry of the deadline referred to in paragraph 1 of this Article.
Upon receipt of the claim, the National Bank of Serbia shall ask the financial services provider to whom the claim pertains to make their statement about the allegations contained in the claim and to provide relevant proof, within a deadline specified by it in its request, which cannot exceed eight days from the date of receipt of such request.
Upon financial services provider’s statement about the claim, i.e. upon expiry of the deadline referred to in paragraph 3 of this Article, the National Bank of Serbia may request additional statements from such provider, i.e. provision of relevant proof within deadline specified in their request.
If the financial service provider should fail to make their statement within the prescribed deadline, i.e. if they should fail to provide relevant proof in compliance with paragraphs 3 and 4 of this Article, the National Bank of Serbia may, regardless of their further actions in relation to the complaint, pass a decision to sanction such provider with a fine amounting to RSD 100,000, and provisions of Article 45, paragraphs 5, 7 and 8 of this Act shall apply mutatis mutandis to such fine.
The National Bank of Serbia shall inform the person submitting complaint about their finding in relation to the complaint within three months from the complaint receipt date, and in the more complex cases, such deadline may be extended by additional three months’ period at the maximum, and the National Bank of Serbia shall inform the person submitting the complaint thereof in writing prior to the expiry of the initial deadline.
In the notification referred to in paragraph 6 of this Article, the National Bank of Serbia shall instruct the person submitting the complaint about the option of an out-of-court settlement of the contested relation with the financial service provider in a mediation procedure that shall be conducted in compliance with Article 44 of this Act.
The National Bank of Serbia shall prescribe detailed complaint submission method, as well as the complaint resolution procedure.
2. Out of Court Dispute Resolution
Article 44
If the person submitting a complaint is dissatisfied with the response to their claim or if such response is not delivered to them within the prescribed deadline, the contentious relation between the person submitting the complaint and the financial services provider may be resolved in an out-of-court procedure - in a mediation procedure.
Upon initiation of a mediation procedure, the consumer may not file a claim, unless such mediation is finally concluded by suspension or withdrawal, and if a claim had already been filed, the National Bank of Serbia shall suspend further activities upon such claim, i.e. discontinue such activities if the mediation procedure is concluded by an agreement.
Deadline for complaints submission referred to in Article 43, paragraph 2 of this Act shall not run during the mediation procedure.
A mediation procedure shall be initiated upon proposal by one party in the dispute and it must be accepted by the other party. Such proposal shall mandatorily include the deadline for the acceptance thereof, which must not be shorter than five days from the mediation proposal delivery date.
Mediation procedure shall be confidential and urgent.
Parties in a dispute may decide to conduct the mediation procedure before the National Bank of Serbia or before another authority or person authorized to conduct mediation.
Mediation procedure before the National Bank of Serbia shall be conducted free of charge for the parties in such procedure.
Mediation procedure before the National Bank of Serbia shall be conducted by mediators - the employees of the National Bank of Serbia, who were appointed mediators based on the relevant decision of the authorized authority in the Republic of Serbia, i.e. those who hold the mediator’s license and are registered on the list of mediators.
A mediation procedure may be concluded by an agreement reached between the parties, by suspension or withdrawal.
An agreement between parties achieved in a mediation procedure before the National Bank of Serbia shall be executed in writing. Such agreement shall be finally enforceable if it includes the statement of the debtor that they agree to enforced collection upon maturity of a specific obligation or realization of a specific condition (enforcement clause), signatures of the parties and certificate of finality drawn up by the National Bank of Serbia, and it need not be stamped by the court or a notary public.
Provisions of the legal regulations governing mediation shall be applied mutatis mutandis to the mediation procedure, unless otherwise stipulated by this Act.
3. Measures to Remedy Illegalities
Article 45
If the finding referred to in Article 43, paragraph 6 of this Act establish that the financial services provider had failed to comply with the provisions of this Act, other regulations governing financial services, general business policy or good business customs relating to such services or obligations from the agreement concluded with the consumer, the National Bank of Serbia shall pass a decision ordering the financial services provider to remedy the identified illegalities and provide proof thereof within deadline specified in such decision.
If the finding referred to in paragraph 1 of this Article establish that the financial services provider had committed infringements referred to in Articles 50, 50a or 50b of this Act, i.e. infringements punishable with fines in a redress procedure for protection of rights and interest of the payment services’ users and electronic money holders in compliance with the law governing payment services, the National Bank of Serbia shall at the same time pronounce a fine referred to in those Articles in their decision from paragraph 1 of this Article to such provider, i.e. a fine laid down in the law governing payment services, based on their discretional assessment of the gravity of the established illegalities, conduct of the financial services provider and responsible persons with such provider and based on other circumstances of relevance under which the established illegality had been committed.
If the financial service provider in the case referred to in paragraph 2 of this Article should fail to deliver to the National Bank of Serbia proof of remedy of illegalities within deadline determined in the decision from paragraph 1 of this Article, the National Bank of Serbia shall pass a decision to sanction such provider with another fine, in the highest amount of such fine as determined in Articles 50, 50a and 50b of this Act, i.e. in the law governing payment services.
If the decision referred to in paragraph 1 of this Article finds that the financial service provider had breached provisions of this Act, law governing payment services, other laws or general business policy regulating financial or payment services or good business customs pertaining to such services, for which the fine referred to in paragraph 2 of this Article is pronounced, and if the financial service provider should fail to present proof to the National Bank of Serbia of the remedy of illegalities within the deadline prescribed in such decision, the National Bank of Serbia shall pass a decision to sanction such provider with a fine amounting to 100,000 dinars.
The fine referred to in this Article shall be paid to the account of the National Bank of Serbia.
The National Bank of Serbia shall publish information on providers found to have failed to act in compliance with this Act or with the law governing payment services, on its website i.e. in some other appropriate manner.
Administrative dispute proceedings may be initiated against the decision referred to in this Article however such action against this decision shall not have any delay effect.
In an administrative dispute proceeding, no court may decide against the decision referred to in this Article, if such administrative dispute proceeding is within jurisdiction of the National Bank of Serbia in compliance with this Act.
Provisions of this Article shall be without prejudice to the authorization of the National Bank of Serbia to control, i.e. supervise compliance of the business operations of such service providers with this Act and with other laws governing financial services in compliance with the provisions of the specific laws governing business activities of the financial service providers, or to, in case of any illegalities, undertake measures and pronounce fines in compliance with such specific laws.
The National Bank of Serbia may additionally undertake control, i.e. supervision referred to in paragraph 9 of this Article, and it may undertake measures and order fines referred to in the same paragraph, based on information on irregularities performed by the financial service provider which it had come to learn during claim resolution or during mediation procedure in compliance with this Act.
4. Right to Judicial Protection
Article 46
Initiation and conducting of mediation procedure between the consumer and service provider shall not preclude nor affect the realization of the right to judicial protection, in accordance with law.
5. Specifics of Consumer Protection in Relation to Financial Services when the Provider of Such Services is from a Member State or a Third Country
Article 46a
Provisions of Articles 42 to 46 of this Act shall apply to consumer protection in relation to financial services provided by a financial service provider from some other Member State of the European Union (hereinafter: a Member State) or from a third country in the Republic of Serbia through its branch office or a proxy.
Complaint referred to in Article 42 of this Act shall be filed directly to the branch office, i.e. to the proxy of the financial service provider referred to in paragraph 1 of this Article.
In case that the consumer should file a complaint against a financial service provider that provides such services directly in compliance with the regulations of the European Union, the National Bank of Serbia shall notify the competent authority of the home Member State of such provider about the complaint.
The National Bank of Serbia, i.e. other intermediaries shall actively cooperate in cases of cross-border disputes and to exchange information and data with authorities of another Member State authorized to act as mediators in out-of-court dispute resolutions between a financial service provider and consumer, in compliance with law.
Provisions of Article 50b of this Act shall additionally pertain to the provider of payment service and issuer of electronic money from a Member State or from a third country providing payment services in the Republic of Serbia, i.e. the services of electronic money issuing through a branch office or a proxy in compliance with the law governing payment services.
FINANCIAL DEALS OFFERED BY SELLERS
Article 47
When advertising and offering financial deals (hereinafter: financial deals), and in particular sales with repayment in installments - the seller must in particular specify data on goods or services, price in cash, as well as the amount paid in advance as down payment or first installment.
If financial deal is advertised relating to the purchase of goods with an interest rate of 0%, all benefits for the customer who pays the price of goods in cash shall also be specified.
If sale with repayment of price in installments that constitutes a credit for the consumer in terms of this Act is advertised - the difference between the purchase price if paid in installments and if paid in cash must be expressed in percents.
Minister competent for consumer protection shall prescribe the form and content of the financial deal form.
Article 48
Provisions of Chapter II of this Act, except for the provisions of Section 7 of the same Chapter shall apply mutatis mutandis to financial deals.
SUPERVISION
Article 49
National Bank of Serbia shall supervise financial service providers, except for financial deals providers, in accordance with this Act, law governing the National Bank of Serbia, as well as laws governing banks, lessors, insurance companies, i.e. companies managing voluntary pension funds.
Ministry competent for consumer protection shall supervise financial deals providers in accordance with the law governing consumer protection.
FINES
Article 50
A fine amounting from RSD 80,000 to RSD 1,000,000 shall be pronounced to a bank:
1) If they should fail to advertise the financial services in a clear and understandable manner or if they should advertise them contrary to the regulation of the National Bank of Serbia referred to in Article 6, paragraph 2 of this Act, i.e. if such advertisement should contain inaccurate or misleading information about terms and conditions for the use of such services (Article 6 of this Act);
2) If the agreement is not drawn up on paper or another durable medium (Article 7, paragraph 1 of this Act);
3) If the consumer is not supplied with a copy of the agreement (Article 7, paragraph 2 of this Act);
4) If the agreement contains provisions whereby the consumer waives the rights guaranteed to them by this Act (Article 7, paragraph 3 of this Act);
5) If they should fail to keep the agreement or other contractual documentation in the consumer’s file (Article 7, paragraph 4 of this Act);
6) If they should fail to display a prominent notice on the value of the contracted variable elements on a daily basis at their business premises where they offer services to the consumers or on the website (Article 8, paragraph 5 of this Act);
7) If the agreement should include a norm referring to business policy or other acts of the bank in relation to such elements as are prescribed as mandatory elements in an agreement by this Act (Article 8, paragraph 6 of this Act);
8) If they should fail to determine the pecuniary contractual obligation in the manner specified by provisions of Article 8 of this Act (Article 8, paragraph 7 of this Act);
9) If they should fail to ensure that the general business policy is in accordance with regulations (Article 9, paragraph 2 of this Act);
10) If they fail to enable the consumer to become acquainted with the general business policy in Serbian language in a clearly visible place in the premises in which they offer their services to the users and on their website 15 days before the start of application thereof at the latest (Article 10, paragraph 1 of this Act);
11) If they fail to provide consumer with adequate information and instructions relating to the application of the general business policy to a specific financial service, or if they fail to supply the consumer, at request, with such policy drafted on paper or other durable medium (Article 10, paragraph 2 of this Act);
12) If they fail to calculate the effective interest rate in the prescribed manner (Article 11 of this Act);
13) If they claim or collect from the consumer the compensation contrary to Article 12, paragraph 7 of this Act in case that the consumer should withdraw from the agreement (Article 12, paragraph 7 of this Act);
14) If they should fail to provide the consumer on paper or another durable medium, free of charge, information, data and instructions related to their contractual relation or if they should fail to provide them in the manner and within deadlines specified by the agreement (Article 13 of this Act);
15) If, when advertising the deposit and credit services, they should fail to specify in a clear and precise manner by means of a representative example, information from Article 15 of this Act (Article 15, paragraph 1 of this Act);
16) If, when advertising the deposit and credit facilities, they should fail to specify the amount of effective interest rate, i.e. fail to present it in such a manner as to be more prominent than other elements (Article 15, paragraph 3 of this Act);
17) If they should fail to present the obligation to conclude an agreement regarding any ancillary services in a clear, concise and prominent manner, together with the effective interest rate (Article 16, paragraph 1 of this Act);
18) If, when advertising a credit, an authorized overdraft facility or credit card with the nominal interest rate of 0%, they should fail to additionally state all the terms and conditions for approval of such credit/authorized overdraft facility/credit card (Article 16, paragraph 2 of this Act);
19) If, when advertising, they should use the expressions representing the credit, authorized overdraft facility or a credit card as free or use any similar terms if approval of such credit/authorized overdraft facility/credit card is conditioned by the conclusion of another agreement or anything that constitutes a cost to the consumer or creates another obligation (Article 16, paragraph 3 of this Act);
20) If, in pre-contractual phase, they should act contrary to the provisions of Article 17 of this Act, and especially if the offer does not include the prescribed elements (Article 17 of this Act);
21) If they should fail to inform the consumer immediately, free of any charge, in writing, about the findings of their consultation of a database and about information from such database in case that their application for a credit, authorized overdraft facility or credit card is rejected (Article 18, paragraph 3 of this Act);
22) If the agreement on credit does not contain mandatory elements referred to in Article 19 of this Act or if they should fail to deliver one copy of the credit repayment schedule and overview of the mandatory credit elements containing basic information about the credit to the consumer or person providing collateral (Article 19 of this Act);
23) If the authorized overdraft facility agreement does not contain mandatory elements referred to in Article 20 of this Act, or if they should fail to supply the consumer or the person providing collaterals with a copy, i.e. with a photocopy of such agreement with an overview of the mandatory elements of the authorized overdraft facility that contains basic information about account overdraft (Article 20 of this Act);
24) If the agreement referred to in Article 22 of this Act does not contain mandatory elements referred to in the same Article or if they should fail to act in compliance with the same Article (Article 22 of this Act);
25) If the agreement on deposit does not contain mandatory elements referred to in Article 23 of this Act or if upon conclusion of such agreement they should fail to supply the consumer with one copy of the deposit payment schedule with overview of the mandatory elements of such deposit containing the basic information on deposit (Article 23, paragraphs 1 and 3 of this Act);
26) If they should claim or collect a compensation from the consumer when the agreement is terminated by the consumer in compliance with Article 23, paragraph 4 of this Act or if they should calculate a lower interest rate contrary to the same paragraph (Article 23, paragraph 4 of this Act);
27) If they should agree upon a variable nominal interest rate contrary to Article 26 of this Act or if they should fail to comply with the agreed terms and conditions relating to such interest rate (Article 26 of this Act);
28) If an agreement on other banking services does not include information on the type and amount of all the charges and other costs borne by the consumer (Article 27 of this Act);
29) If they should fail to obtain written consent for modification of mandatory elements of the agreement prior to such modification, i.e. if they should unilaterally modify the terms of agreement or if they should unilaterally terminate, i.e. withdraw the agreement or if they should fail to notify the consumer about the modifications referred to in Article 28, paragraph 2 of this Act in the manner prescribed in paragraph 3 of the same Article (Article 28 of this Act);
30) If they should fail to inform the consumer, on paper or another durable medium, about the changes in the agreed variable nominal interest rate and variable elements affecting the amount of other pecuniary obligations, before starting to apply them, i.e. periodically, in compliance with the agreement, or if they should fail to specify in such notification the effective date of such interest rate i.e. elements (Article 29, paragraphs 1 and 4 of this Act);
31) If they should fail to supply, together with the notification about the change of variable nominal interest rate, free of charge, on paper or another durable medium, the amended credit repayment schedule or if they should fail to make the said schedule available to the consumer free of any charge during the entire term of contractual relation (Article 29, paragraphs 2 and 3 of this Act);
32) If they should fail to inform the consumer in a timely manner and as agreed of any change of data that is not a mandatory element of the agreement within the meaning of this Act (Article 30 of this Act);
33) If they should fail to supply the consumer with the statement of their debt and account overdraft within the deadlines and in the manner prescribed in Article 31 of this Act (Article 31 of this Act);
34) If they should fail to apply the rules on interest rate applied in case of debtor’s default prescribed by the law governing contracts and torts to the obligation due but no discharged (Article 32, paragraph 1 of this Act);
35) If they should fail to act in compliance with Article 33 of this Act in a case of revolving credit (Article 33 of this Act);
36) If they should fail to apply the official middle exchange rate in approving credit indexed in a foreign currency or in the repayment thereof, i.e. in agreements on deposit (Article 34 of this Act);
37) If they should fail to additionally apply the same interest calculation method on the special purpose deposit and on the calculation of interest on the approved credit amount (Article 35 of this Act);
38) If they should collect any compensation for an early repayment contrary to Article 36 of this Act (Article 36 of this Act);
39) If they should fail to allow the consumer, i.e. the person providing collaterals to recover the unused collaterals upon complete repayment of consumer’s obligations to the bank based on a specific agreement or if they should fail to notify them in writing that the consumer had repaid all their obligations to the bank within 30 days from the settlement date of such obligations i.e. if such notification should not include prescribed information (Article 37a of this Act);
40) If, when assigning a claim, they should act contrary to Article 39 of this Act (Article 39 of this Act);
41) If they should engage in an unfair business operation or agree unjust contractual provisions (Article 41 of this Act);
42) If they should fail to enable the consumer to submit a complaint or if they should fail to respond to their complaint within the deadline and in the manner referred to in Article 42 of this Act, or if they should claim or collect any compensation or other costs for such complaint submission, or if they should fail to provide for the option of complaint submission i.e. the option for the consumer to get acquainted with complaint procedure and complaint resolution procedure in their business premises in which they offer their services to the users and on their website (Article 42 of this Act);
43) If they had failed to act in compliance with Article 54 of this Act (Article 54 of this Act).
Article 50a
A fine amounting from RSD 50,000 to RSD 800,000 shall be pronounced to the lessor:
1) If they should fail to advertise the lease services in a clear and understandable manner or if they should advertise them in a manner contrary to the regulation of the National Bank of Serbia referred to in Article 6, paragraph 2 of this Act, i.e. if such advertising should include incorrect or misleading information on terms and conditions for the use of such services (Article 6 of this Act);
2) If the agreement on lease is not drawn up on paper or another durable medium (Article 7, paragraph 1 of this Act);
3) If the consumer is not supplied with a copy of the agreement on lease (Article 7, paragraph 2 of this Act);
4) If the lease agreement should contain provisions whereby the consumer waives the rights guaranteed to them by this Act (Article 7, paragraph 3 of this Act);
5) If they should fail to keep a copy of the agreement on lease or other contractual documentation in the consumer’s file (Article 7, paragraph 4 of this Act);
6) If they should fail to display a prominent notice on the value of the contracted variable elements on a daily basis at their business premises where they offer services to the consumers or on the website (Article 8, paragraph 5 of this Act);
7) If the agreement on lease should contain a norm referring to the business policy or other acts of the lessor in case of the elements prescribed as mandatory elements of such agreements by this Act (Article 8, paragraph 6 of this Act);
8) If they should fail to determine the pecuniary contractual obligation as prescribed by the provisions of Article 8 of this Act (Article 8, paragraph 7 of this Act);
9) If they should fail to provide compliance of their general business policy with legal regulations (Article 9, paragraph 2 of this Act);
10) If they should fail to enable the consumer to get acquainted with its general business policy in Serbian language, 15 days before its application at the latest in a visible place in their business premises in which they offer their services to the consumers and on their website (Article 10, paragraph 1 of this Act);
11) If they should fail to supply the consumer with adequate explanations and instructions pertaining to the application of the general business policy in regards to the lease, or if they should fail to make such policy available to consumer, at request, on paper or another durable medium (Article 10, paragraph 2 of this Act);
12) If they should fail to calculate the effective interest rate in the prescribed manner (Article 11 of this Act);
13) If they should claim or collect from the consumer any compensation contrary to Article 12, paragraph 7 of this Act in case that the consumer should withdraw from an agreement on lease (Article 12, paragraph 7 of this Act);
14) If they should fail to provide the consumer on paper or another durable medium, free of charge, information, data and instructions related to their contractual relation or if they should fail to provide them in the manner and within deadlines specified by the agreement on lease (Article 13 of this Act);
15) If, when advertising the lease facilities, they should fail to specify in a clear and precise manner by means of a representative example, information from Article 15 of this Act (Article 15, paragraphs 1 and 2 of this Act);
16) If, when advertising the lease facilities, they should fail to specify the amount of effective interest rate, i.e. they should fail to present it in such a manner as to be more prominent than other elements (Article 15, paragraph 3 of this Act);
17) If they should fail to present the obligation to conclude an agreement regarding any ancillary services in a clear, concise and prominent manner, together with the effective interest rate (Article 16, paragraph 1 of this Act);
18) If, when advertising a lease with the nominal interest rate of 0%, they should fail to additionally state all the terms and conditions for approval of such lease (Article 16, paragraph 2 of this Act);
19) If, when advertising, they should use the expressions representing the lease as free or use similar terms if approval of such lease is conditioned by the conclusion of another agreement or anything that constitutes a cost to the consumer or creates another obligation (Article 16, paragraph 3 of this Act);
20) If, in pre-contractual phase, they should act contrary to the provisions of Article 17 of this Act, and especially if the offer does not include the prescribed elements (Article 17 of this Act);
21) If they should fail to inform the consumer immediately, free of any charge, in writing, about the findings of their consultation of a database and about information from such database in case that their application for a lease is rejected (Article 18, paragraph 3 of this Act);
22) If the agreement on lease does not contain mandatory elements referred to in Article 21 of this Act or if they should fail to supply the consumer one copy of the lease repayment schedule on conclusion of such agreement and an overview of the mandatory elements of lease containing basic information about the lease (Article 21 of this Act);
23) If they should agree upon a variable nominal interest rate contrary to Article 26 of this Act or if they should fail to comply with the agreed terms and conditions relating to such interest rate (Article 26 of this Act);
24) If they should fail to obtain written consent for modification of mandatory elements of the agreement on lease prior to such modification, i.e. if they should unilaterally modify the terms of such agreement or if they should unilaterally terminate, i.e. withdraw such agreement or if they should fail to notify the consumer about the modifications referred to in Article 28, paragraph 2 of this Act in the manner prescribed in paragraph 3 of the same Article (Article 28 of this Act);
25) If they should fail to inform the consumer, on paper or another durable medium, about the changes in the agreed variable nominal interest rate and variable elements affecting the amount of other pecuniary obligations, before starting to apply them, i.e. periodically, in compliance with the agreement on lease, or if they should fail to specify in such notification the effective date of such interest rate i.e. elements (Article 29, paragraphs 1 and 4 of this Act);
26) If they should fail to supply, together with the notification about the change of variable nominal interest rate, free of charge, on paper or another durable medium, the amended lease fee repayment schedule or if they should fail to make the said schedule available to the consumer free of any charge during the entire term of contractual relation (Article 29, paragraphs 2 and 3 of this Act);
27) If they should fail to inform the consumer in a timely manner and as agreed of any change of data that is not a mandatory element of the agreement on lease within the meaning of this Act (Article 30 of this Act);
28) If they should fail to supply the consumer with the statement of their debt for the agreement on lease within the deadlines and in the manner prescribed in Article 31 of this Act (Article 31, paragraphs 1 and 2 of this Act);
29) If they should fail to apply the rules on interest rate applied in case of debtor’s default prescribed by the law governing contracts and torts to the obligation due but no discharged (Article 32, paragraph 1 of this Act);
30) If they should fail to apply the official middle exchange rate when granting a lease indexed in a foreign currency or in repayment thereof (Article 34 of this Act);
31) If they should collect any compensation for early repayment contrary to Article 36 of this Act (Article 36 of this Act);
32) If they should engage in an unfair business operation or agree unjust contractual provisions (Article 41 of this Act);
33) If they should fail to enable the consumer to submit a complaint or if they should fail to respond to their complaint within the deadline and in the manner referred to in Article 42 of this Act, or if they should claim or collect any compensation or other costs for such complaint submission, or if they should fail to provide for the option of complaint submission i.e. the option for the consumer to get acquainted with complaint procedure and complaint resolution procedure in their business premises in which they offer their services to the users and on their website (Article 42 of this Act);
34) If they had failed to act in compliance with Article 54 of this Act (Article 54 of this Act).
Article 50b
A fine amounting from RSD 50,000 to RSD 800,000 shall be pronounced to payment services provider or electronic money issuer who is not a bank in cases where, in compliance with the law governing payment services, they should offer a credit service or an authorized overdraft facility:
1) If they fail to advertise such services in a clear and comprehensive manner, or if they should advertise them in a manner contrary to the regulation of the National Bank of Serbia referred to in Article 6, paragraph 2 of this Act, i.e. if the advertisement should include incorrect information or misleading information relating to the terms under which the consumer uses such services (Article 6 of this Act);
2) If the agreement is not drawn up on paper or on some other durable medium (Article 7, paragraph 1 of this Act);
3) If the consumer should not receive a copy of the agreement (Article 7, paragraph 2 of this Act);
4) If the agreement should include provisions whereby the consumer waives their rights guaranteed by this Act (Article 7, paragraph 3 of this Act);
5) If they should fail to keep the agreement or other contractual documentation in consumer’s file (Article 7, paragraph 4 of this Act);
6) If they should fail to display a prominent notice on the value of the contracted variable elements on a daily basis at their business premises where they offer services to the consumers or on the website (Article 8, paragraph 5 of this Act);
7) If the agreement should include a norm referring to business policy or some other acts of the payment services provider or electronic money issuer in relation to elements that are prescribed as mandatory elements in an agreement by this Act (Article 8, paragraph 6 of this Act);
8) If they should fail to establish the pecuniary contractual obligation in the manner prescribed by the provisions of Article 8 of this Act (Article 8, paragraph 7 of this Act);
9) If they should fail to ensure that the general business policy referring to credit approval and authorized overdraft facility is in accordance with regulations (Article 9, paragraph 2 of this Act);
10) If they should fail to enable the consumer to get acquainted with its general business policy in Serbian language, 15 days before its application at the latest in a visible place in their business premises in which they offer their services to the consumers and on their website (Article 10, paragraph 1 of this Act);
11) If they should fail to supply the consumer with adequate explanations and instructions pertaining to the application of the general business policy in regards to credit approval or authorized overdraft facility, or if they should fail to make such policy available to consumer, at request, on paper or another durable medium (Article 10, paragraph 2 of this Act);
12) If they should fail to calculate the effective interest rate in the prescribed manner (Article 11 of this Act);
13) If they should require the consumer to pay or if they should collect the charge contrary to Article 12, paragraph 7 of this Act in case that the consumer should exercise their right to withdraw from the agreement (Article 12, paragraph 7 of this Act);
14) If they should fail to provide the consumer on paper or another durable medium, free of charge, information, data and instructions related to their contractual relation or if they should fail to provide them in the manner and within deadlines specified by the agreement (Article 13 of this Act);
15) If they should fail to specify in a clear, concise and precise manner by means of a representative example, when advertising these financial services, information from Article 15 of this Act (Article 15, paragraph 1 of this Act);
16) If, when advertising credit and authorized overdraft facility, the amount of effective interest rate should not be specified, i.e. written so as to be more prominent than other elements (Article 15, paragraph 3 of this Act);
17) If they should fail to present the obligation to conclude an agreement regarding any ancillary services in a clear, concise and prominent manner, together with the effective interest rate (Article 16, paragraph 1 of this Act);
18) If, when advertising a financial service with the nominal interest rate of 0%, they should fail to additionally state all the terms and conditions for approval of such credit i.e. authorized overdraft facility (Article 16, paragraph 2 of this Act);
19) If they should use, when advertising, expressions representing the credit or the authorized overdraft facility as free or any similar terms where approval of such credit or authorized overdraft facility is conditioned by conclusion of another agreement or anything representing a cost for the consumer or creating another obligation (Article 16, paragraph 3 of this Act);
20) If, in pre-contractual phase, they should act contrary to the provisions of Article 17 of this Act, and especially if the offer does not include the prescribed elements (Article 17 of this Act);
21) If the credit agreement does not include mandatory elements referred to in Article 19 of this Act, or if they should fail to supply the consumer or person providing collaterals with one original copy, i.e. with a photocopy of such agreement and credit repayment schedule and an overview of the mandatory elements of the credit containing basic information on credit (Article 19 of this Act);
22) If the authorized overdraft facility agreement does not contain mandatory elements referred to in Article 20, paragraph 1 of this Act, or if they should fail to supply the consumer or the person providing collaterals with a copy, i.e. with a photocopy of such agreement with an overview of the mandatory elements of the authorized overdraft facility that contains main information about account overdraft (Article 20 of this Act);
23) If they should agree a variable nominal interest rate contrary to Article 26 of this Act or if they should fail to comply with the agreed terms related to such interest rate (Article 26 of this Act);
24) If they should fail to obtain written consent for modification of mandatory elements prior to such modification, i.e. if they should unilaterally modify the terms of agreement or if they should unilaterally terminate, i.e. withdraw the agreement or if they should fail to notify the consumer about the modifications referred to in Article 28, paragraph 2 of this Act in the manner prescribed in paragraph 3 of the same Article (Article 28 of this Act);
25) If they should fail to inform the consumer, on paper or another durable medium, about the changes in the agreed variable nominal interest rate and variable elements affecting the amount of other pecuniary obligations, before starting to apply them, i.e. periodically, in compliance with the agreement, or if they should fail to specify in such notification the effective date of such interest rate i.e. elements (Article 29, paragraphs 1 and 4 of this Act);
26) If they should fail to supply, together with the notification about the change of variable nominal interest rate, free of charge, on paper or another durable medium, the amended credit repayment schedule or if they should fail to make the said schedule available to the consumer free of any charge during the entire term of contractual relation (Article 29, paragraphs 2 and 3 of this Act);
27) If they should fail to inform the consumer in a timely manner and as agreed of any change of data that is not a mandatory element of the agreement within the meaning of this Act (Article 30 of this Act);
28) If they should fail to supply the consumer with the statement of their debt and account overdraft within the prescribed deadlines and in the manner prescribed in Article 31 of this Act (Article 31 of this Act);
29) If they should fail to apply the rules on interest rate applied in case of debtor’s default prescribed by the law governing contracts and torts to the obligation due but no discharged (Article 32, paragraph 1 of this Act);
30) If, in case of a revolving credit, they should fail to act in compliance with Article 33 of this Act (Article 33 of this Act);
31) If they should fail to apply the official middle exchange rate when approving credit indexed in a foreign currency or during credit repayment (Article 34 of this Act);
32) If they should collect compensation for early repayment contrary to the provisions of Article 36 of this Act (Article 36 of this Act);
33) If they should fail to allow the consumer, i.e. the person providing collaterals to recover the unused collaterals upon complete repayment of consumer’s obligations based on a specific agreement or if they should fail to notify them in writing that the consumer had repaid all their obligations to credit i.e. authorized overdraft facility provider, within 30 days from the settlement date of such obligations i.e. if such notification should not include prescribed information (Article 37a of this Act);
34) If they should assign the claims from credit agreement or from the agreement on authorized overdraft facility contrary to Article 39 of this Act (Article 39, paragraphs 5 and 6 of this Act);
35) If they should conduct unfair business operation or agree unjust contractual provisions (Article 41 of this Act).
Provider of payment services or issuer of electronic money who is not a bank shall be sanctioned with fine from RSD 50,000 to RSD 800,000 when they provide the credit card issuing service in compliance with the law governing payment services and in compliance with this Act:
1) If they should request from the consumer to pay or if they should collect the compensation contrary to Article 12, paragraph 7 of this Act in case when the consumer had withdrawn from agreement on issuing and use of credit card (Article 12, paragraph 7 of this Act);
2) If, when advertising a credit card, they should fail to specify in a clear and precise manner by means of a representative example information listed in Article 15 of this Act (Article 15, paragraph 1 of this Act);
3) If, when advertising a credit card, they should fail to specify the amount of the effective interest rate, i.e. when such amount is not written in such a manner as to be more prominent than other elements (Article 15, paragraph 3 of this Act);
4) If they should fail to present the obligation to conclude an agreement regarding any ancillary services in a clear, concise and prominent manner, together with the effective interest rate (Article 16, paragraph 1 of this Act);
5) If when advertising the credit card with nominal interest rate of 0% they should fail to additionally specify all the terms and conditions for approval i.e. issuing of such credit card (Article 16, paragraph 2 of this Act);
6) If, when advertising, they should use the expressions representing the credit card as free or use any similar terms if approval of such credit card is conditioned by the conclusion of another agreement or anything that constitutes a cost to the consumer or creates another obligation (Article 16, paragraph 3 of this Act);
7) If information supplied in pre-contractual phase when concluding the agreement on issuing and use of credit card does not include information i.e. elements referred to in Article 22 of this Act or if information and such draft agreement are not supplied to the person intending to provide collateral (Article 17, paragraphs 8 and 9 of this Act);
8) If the agreement on issuing and use of credit card does not include mandatory elements referred to in Article 22 of this Act (Article 22 of this Act);
9) If they should agree a variable nominal interest rate contrary to Article 26 of this Act or if they should fail to comply with the agreed terms related to such interest rate (Article 26 of this Act);
10) If they should fail to apply the rules on interest rate applied in case of debtor’s default prescribed by the law governing contracts and torts to the obligation due but no discharged (Article 32, paragraph 1 of this Act);
11) If they should charge any compensation for early repayment on a credit card (Article 36 of this Act);
12) If they should fail to allow the consumer i.e. the person providing collaterals to recover the unused collaterals upon complete repayment of consumer’s obligations based on the agreement on issuing and use of credit card or if they should fail to notify them in writing that the consumer had repaid all their obligations to the issuer of such card, within 30 days from the date of settlement of such obligations, i.e. if such notification does not include prescribed information (Article 37a of this Act);
13) If they should assign the claim from the agreement on issuing and use of credit card contrary to Article 39 of this Act (Article 39, paragraphs 5 and 6 of this Act);
14) If they should conduct unfair business operation or agree unjust contractual provisions (Article 41 of this Act).
Provider of payment services or issuer of electronic money who is not a bank shall be sanctioned with a fine of 50,000 to 800,000 dinars if they should fail to allow the consumer of payment services or holder of electronic money, including the consumer of a credit, authorized overdraft facility and credit card, to file a complaint, or if they should fail to respond to the complaint of such consumer or holder within deadlines and in the manner referred to in Article 42 of this Act, or in case that they should request or charge a compensation or other costs for complaint submission, or if they should fail to provide for the option to submit complaint in the business premises in which they offer their services to consumers and on their website, i.e. the option for such a consumer or holder to get acquainted with the procedure for complaint submission and procedure for complaint resolution (Article 42 of this Act).
PENAL PROVISIONS
Article 51
A fine amounting from RSD 50,000 to RSD 800,000 shall be pronounced for an offence to the seller which is a legal entity:
1) If they fail to advertise financial deals in a clear and comprehensive manner, or if they should advertise them in a manner contrary to the regulation of the National Bank of Serbia referred to in Article 6, paragraph 2 of this Act, and or if the advertisement should include incorrect information or misleading information relating to the terms under which the consumer uses such services (Article 6 of this Act);
2) If the financial deal agreement is not drafted in writing or on some other durable medium (Article 7, paragraph 1 of this Act);
3) If a copy of the financial deal agreement is not supplied to the consumer (Article 7, paragraph 2 of this Act);
4) If the financial deal agreement contains provisions whereby the consumer waives their rights guaranteed to them by this Act (Article 7, paragraph 3 of this Act);
5) If they doesn’t keep a copy of the financial deal agreement or other contractual documentation in the consumer file (Article 7, paragraph 4 of this Act);
6) If the financial deal agreement should include a norm referring to business policy or other acts of the financial service provider in relation to such elements that are prescribed as mandatory elements of such agreement by this Act (Article 8, paragraph 6 of this Act);
7) If they should fail to establish the pecuniary contractual obligation in the manner prescribed by the provisions of Article 8 of this Act (Article 8, paragraph 7 of this Act);
8) If they should fail to ensure that the general business policy pertaining to financial deals is in accordance with regulations (Article 9, paragraph 2 of this Act);
9) If they should fail to enable the consumer to get acquainted with its general business policy in Serbian language, 15 days before its application at the latest in a visible place in their business premises in which they offer their services to the consumers and on their website (Article 10, paragraph 1 of this Act);
10) If they should fail to provide adequate explanations and instructions to the consumer related to the application of the general business policy in regards to the financial deal or if they should fail to supply them with such policy, on paper or on some other durable medium, at consumer’s request (Article 10, paragraph 2 of this Act);
11) If they should fail to calculate the effective interest rate in the prescribed manner (Article 11 of this Act);
12) If they should require or collect charge from the consumer contrary to Article 12, paragraph 7 of this Act in case that the consumer should exercise their right to withdraw from the financial deal agreement (Article 12, paragraph 7 of this Act);
13) If they should fail to provide the consumer on paper or on some other durable medium, free of charge, information, data and instructions related to their contractual obligation or if they should fail to provide them in the manner and within deadlines specified by the financial deal agreement (Article 13 of this Act);
14) If they should fail to present the obligation to conclude an agreement regarding ancillary services in a clear, concise and prominent manner, together with the effective interest rate (Article 16, paragraph 1 of this Act);
15) If they should use, when advertising, expressions representing the financial deal as free or use any similar terms and if they should fail to advertise the additional costs on the basis of conclusion of other financial deal agreement or on the basis of anything representing a cost for the consumer or creating another obligation (Article 16, paragraph 3 of this Act);
16) If, when advertising and offering the financial deal, they should fail to specify data on goods or service, price in cash, as well as the amount paid in advance as down payment or first installment (Article 47, paragraph 1 of this Act);
17) If they should fail to specify all the all the benefits for the consumer who pays the price of goods in case when the financial deal is advertised relating to the purchase of goods with an interest rate of 0% (Article 47, paragraph 2 of this Act);
18) If, in case of sale with payment of price in installments which is in terms of this Act considered to constitute a credit for the consumer, they should fail to present the difference between the purchase price if paid in installments and if paid in cash in percent (Article 47, paragraph 3 of this Act);
19) If they should act contrary to the obligations laid down in Chapter II of this Act that are applicable to the seller (Article 48 of this Act).
A responsible person with the seller who is a legal entity shall additionally be sanctioned for the acts referred to in paragraph 1 of this Article with a fine from RSD 20,000 to RSD 100,000.
A seller who is a sole trader shall be sanctioned for acts referred to in paragraph 1 of this Article with a fine from RSD 30,000 to RSD 500,000.
TRANSITIONAL AND FINAL PROVISIONS
Article 52
Regulations necessary for implementation of this Act shall be passed within three months from the day it enters into force at the latest.
Article 53
Financial service providers shall be under the obligation to harmonize their bylaws with the provisions of this Act and regulations referred to in Article 52 of that Act within three months from the day such regulations are passed at the latest.
Article 54
Provisions of Article 8 and Article 26, paragraph 1 to 3 of this Act shall apply to all obligations based on agreements which become due after the day this Act starts to be applied.
Financial service providers shall be under the obligation, until the day of application of this Act, to harmonize the agreements concluded by that day with the provisions of Article 8 and Article 26, paragraphs 1 to 3 of this Act in such a manner that stipulated variable and indeterminable nominal interest rate, i.e. the variable indeterminable element of such interest rate shall not be greater than their initial rate (rate at the time of closing of agreement).
Financial service providers may not increase the interest rate using stipulated indeterminable elements from the day this Act enters into force to the day of its application.
Financial service providers shall not be entitled to charge customers of agreements with a special compensation for harmonizing agreements in a manner provided in paragraph 2 of this Article, nor to request additional documentation for that purpose.
Article 55
National Bank of Serbia, i.e. the Ministry competent for consumer protection shall take such measures against financial service providers who fail to act in the manner referred to in Article 53 of this Act as prescribed by regulations governing their operation.
Article 56
This Act shall enter into force on the eighth day following its publication in the Official Herald of the Republic of Serbia and shall apply after the expiry of six months from its entry into force, except for the provision of Article 38 paragraph 5 of this Act, which shall apply as of 1 January 2012.
Independent articles of the Act on Amendments and Additions
to
The Financial Services Consumer Protection Act
("Official Herald of RS", No. 139/14)
Article 39
A bank shall be fined 80,000 to 1,000,000 dinars if until 30 September 2015 acts contrary to the provisions of Articles 24, 37 and 38 of the Financial Services Consumer Protection Act ("Official Herald of RS", No. 36/11).
The provisions of Article 33 of this Act shall apply to imposition of the fine referred to in paragraph 1 of this Article.
Article 40
When exercising protection of rights and interests of the financial services consumers upon complaints filed until the date of entry into force of this Act, a bank shall act in accordance with the provisions of the Financial Services Consumer Protection Law ("Official Herald of RS", No. 36/11).
The National Bank of Serbia shall act upon notices of the financial services consumers on the complaints, which have been delivered until the date of entry into force of this Act in accordance with the provisions of the Financial Services Consumer Protection Act ("Official Herald of RS", No. 36/11).
Article 41
Banks shall be obliged, when repaying financial services consumers obligations that become due as of the date of entry into force of this Act based on the agreements on credits indexed to a foreign currency and concluded before the Financial Services Consumer Protection Law ("Official Herald of RS", No. 36/11) started to apply - to apply the same type of foreign exchange rate they have used when approving such credits (buying, middle or selling) or to apply the type of foreign exchange rate which is more favorable for the financial services consumer than the one they have used until then.
The provision of paragraph 1 of this Article shall also apply to the lessors when repaying lessees’ obligations that become due as of the date this Act starts to apply based on the agreements on lease indexed to a foreign currency and concluded before the Financial Services Consumer Protection Law ("Official Herald of RS", No. 36/11) started to apply.
Article 42
If a bank, i.e. lessor act contrary to Article 41 of this Act - the National Bank of Serbia may undertake all the measures against the financial service provider determined by this Act i.e. the law governing operation of banks, i.e. lessors.
A bank, i.e. lessor shall be fined 200,000 to 800,000 dinars if they act contrary to Article 41 of this Act.
The provisions of Article 33 of this Act shall apply to imposition of the fine referred to in paragraph 2 of this Article.
Article 43
This Act shall enter into force on the eighth day following its publication in the Official Herald of the Republic of Serbia and shall apply after the expiry of three months from its entry into force, except for the provisions of Article 1 paragraphs 1, 3 and 5 and Articles 2, 9, 14, 16, 17, 20, 22, 24, 25, 26 and 37 of this Act, which shall apply as of 1 October 2015, and the provisions of Article 34 of this Act, which shall apply as of the date of accession of the Republic of Serbia to the European Union.