Tbilisi (GBC) - To strengthen the competitive environment and improve consumer protection standards, amendments are being made to the “Rules for the Protection of Consumer Rights in the Provision of Services by Financial Organizations.” Financial organizations will be required to comply with these changes starting May 1 of this year,” the National Bank of Georgia reported.
“The amendments include a reduction in the maximum prepayment commission for loan/credit refinancing from another financial organization. For individuals and legal entities with total liabilities of up to two million GEL, the commission will decrease from the current 2% to 0.5%.
These changes will lower the cost of transferring liabilities between financial organizations, fostering increased competition and offering more favorable conditions for consumers.
Notably, for the first time, the amendments establish an upper limit of 2% for the prepayment commission on documentary operations (e.g., letters of credit, documentary collections, bank guarantees, acceptances). Previously, this area had not been regulated, leading to cases where higher commissions were imposed. In response, the NBG has deemed it necessary to address this gap in consumer protection.
The National Bank of Georgia remains committed to protecting consumers’ and investors’ rights in the financial sector and promoting competition. These changes will strengthen the competitive environment, which plays a key role in safeguarding consumer rights.
Moving forward, the National Bank will continue enhancing mechanisms to promote competition and ensure consumer protection,” the NBG states.
