AGCM

According to the AGCM, the bank provided consumers with unclear information on how to calculate interest until the first repayment date and the duration of its accrual period

The Italian Competition Authority completed the investigation proceedings against Banca Nazionale del Lavoro S.p.A. - accepting the submitted commitments - for alleged unfair commercial practices involving the sale of real estate mortgage. In particular, the Authority examined the bank's policies for the calculation of interest and the duration of its accrual period, using methods that could prevent clear disclosure and therefore prevent borrowers from making an informed decision.

This is a particularly serious concern about loan disbursement, in terms of costs to be borne by consumers, because it consists in the time between the execution date of a loan agreement and/or disbursement of a loan and the first repayment date. The longer this time and the higher the applied rate are, the expense to be borne by consumers is greater.

The time until the first mortgage repayment date applied by BNL was equal to a minimum of 31 days up to a maximum 2 months. Moreover, the bank applied an interest rate until the first repayment date that was significantly higher than that applied to the repayment plan. Therefore, consumers risked being charged large amounts until the first repayment date, of which they would become aware shortly before the execution of the agreement, i.e. when the bank would send the calculation of the disbursement amounts and the final draft of the loan agreement as annexes to the binding offer.

According to the Italian Competition Authority, the commitments undertaken by BNL are suitable for removing the alleged unfair elements identified in the opening of proceedings decision. In particular, the bank undertook to render the interest rate applied until the first repayment date equal to the interest rate applied to the loan agreement (in the case of a floating-rate loan, the rate until the first repayment date will be equal to the rate applied to the first repayment) and to substantially reduce the duration of the time until the first repayment date to a maximum of 31 days. Equalising rates, and therefore a significant reduction in the interest rate currently applied until the first repayment date, and a reduction in the maximum duration will considerably benefit consumers in terms of lower interest expense prior to the commencement of the repayment plan. BNL also submitted commitments to ensure full transparency of these new terms and conditions on the duration of the time until the first repayment date and related accrued interest.

Rome, 21 July 2022