FAQ

Before concluding the offered contract, the user has the right to request that the financial organization hand over a free draft of the contract, and to consider the content of the draft outside the premises of the financial organization, within the period specified in the standard information sheet.

This allows the user to review the content of the future contract in detail, ask for additional clarifications and remove ambiguities in the contractual provisions or request changes to provisions that are not acceptable.

It is important to point out that even in this negotiation phase, the financial organization is obliged to ensure adequate protection of the user and to adhere to the principle of equal relationship between the user and the financial organization.

This is a very important question for users, because it directly affects the final price of the service or product that the user intends to use.

Each financial organization determines the fees and costs for each individual service or product it offers through its acts (eg Decision on Fees, Tariff of Fees, etc.). Fees and expenses charged for the performance of a certain service are mandatory elements of the contract with the financial organization on the use of the financial service or product, which means that they must be regulated in that contract. Therefore, when the user and the financial organization contract regulate mandatory elements provided by law, the contract cannot contain provisions that refer to financial organization’s business policy acts (eg decisions, tariffs, etc.) (Article 141, paragraph 6 of the Law on Banks of the Republic of Srpska).

In this regard, it is important to keep in mind that there are differences in the amount of fees on the market. In order to control and reduce their costs, we advise users that, before deciding to use any financial service, they are informed in detail about all types and amounts of fees and costs related to the given service, with several financial organizations, and then to decide for using the service that corresponds to their economic possibilities, needs and expectations. You can find detailed information on fees and costs in the business premises and on the Internet pages of each financial organization, and for precise calculations by type and amount, it is necessary to contact the financial organization directly.

One of the important and mandatory elements of the loan agreement is the interest rate.

The characteristic of the fixed interest rate is that it remains unchanged (the same) in its nominal amount during the contracted period, in contrast to the variable interest rate, which changes in the nominal amount, depending on the change of the contracted variable elements that are officially published (e.g. Euribor, Libor , average interest rate, index consumer prices and the like).

The financial organization is always obliged to foresee and agree on clear conditions and criteria for interest rate volatility. Changing the interest rate leads to an increase (or decrease) in the amount of the installment or annuity, which users must especially keep in mind before concluding the contract.

If a variable nominal interest rate has been agreed, the financial organization is obliged to inform the user of any change in the interest rate in written or electronic form, before the start of the application of the changed rate, or periodically, in accordance with the contract, and in that notification, specify the date from which the changed rate is applied. Rate. In the aforementioned case, in addition to the notification, the financial organization must provide the user with a new repayment plan free of charge, which must always be available for the duration of the contractual relationship.

If the financial organization intends to change some of the mandatory elements of the contract, it is obliged to obtain the written consent of all participants in the credit relationship (beneficiary, co-borrower, guarantor and others) before applying any change, except when it comes to changing the contracted variable interest rate. If the user does not agree with changes to the mandatory elements of the contract, the financial organization cannot unilaterally change the terms of the contract, nor unilaterally terminate or cancel the contract, except in special cases provided for by law.

The user has the right to return the loan at any time, in full or partially. In that case, the user has no obligation to pay regular interest and costs for the remaining period of the contract (early repayment of the loan), but only until the day of early repayment of the loan. The user is obliged to notify the financial organization in advance of the intention to repay the loan early, within the agreed period.

The financial organization has the right to a justified and agreed reimbursement of costs related to the early repayment of the loan, namely:

• if the amount of early repayment of the loan in a period of one year is greater than 10,000.00 KM, and
• a maximum of 1% of the loan amount that is repaid early, if the period between the early repayment and the deadline for fulfilling the obligation from the contract is equal to or longer than one year, and a maximum of 0.5% if that period is shorter than one year.

It is important to know that the financial organization does not have the right to compensation for the costs of early repayment of the loan:

• if the repayment was made on the basis of a concluded insurance contract that served to secure the repayment
• if the early repayment is made in the period in which the variable interest rate is applied i
• in case of repayment of the allowed overdraft on the account.

A mandatory element of the loan agreement is the default interest rate, which is applied in the event of a delay in the payment of financial obligations. Debtors who are late in fulfilling their financial obligation (debt) owe, in addition to the principal, default interest on that amount of debt.

According to the Law on Default Interest (“Official Gazette of Republika Srpska No. 61/18) the default interest rate is 0.03% per day and the interest is calculated at that rate until the day the debt is paid. (For example, if the user were to be 30 days late in fulfilling a monetary debt in the amount of 1,000.00 KM, in addition to that debt, he would also owe default interest in the amount of 9.00 KM). The same rate applies to all cases in which default interest is not prescribed by a separate law.

It is very important to know that the Law on Obligations (“Official Gazette of the SFRY” No. 29/78, 39/85, 45/89 and 57/89 and “Official Gazette of the Republic of Srpska No. 17/93, 3/96, 39/03 and 74/0461/18)(further: ZOO) stipulated that, if the agreed interest rate is higher than the default interest rate, then in the event of the debtor’s delay, that agreed interest will be calculated. Therefore, the financial organization can, on its overdue claims against the user, calculate and charge either the statutory default interest (0.03% per day, i.e. at the rate from a special law) or, as the default interest rate, apply the contracted regular interest rate ( if it is higher).

In accordance with the law, a financial organization may assign its claim from the contract concluded with a natural person – user of financial services exclusively to other banks or financial organizations that have a license to operate from the Banking Agency of the Republic of Srpska (hereinafter: the Agency). The financial organization is obliged to inform the user about the assignment of claims.

Another financial organization cannot put the user in a less favorable position than the position he would have had if the claim had not been assigned (transferred), nor can the user be exposed to any additional costs in that case.

The Central Bank of Bosnia and Herzegovina’s Decision on the Central Register of Loans of Business Entities and Individuals in Bosnia and Herzegovina (“Official Gazette of BiH” No. 44/19) established the Central Register of Loans (hereinafter: CRK), which is an electronic collection of data (records) on credit and other liabilities of business entities and natural persons.

Participants in the CRK are obliged to submit prescribed data to the CRK on a daily basis for each assignment of a natural person they manage and are responsible for the accuracy and timeliness of the submitted data. Records of all loans and other debts are available through two reports:

Given that the reports to the CRK contain personal data, in accordance with the law, any access to the reports should imply the consent of the data holder. In other words, no one to whom you have given written consent to access the data has the right to view these reports.

Keep in mind that, if you intend to be a co-borrower or guarantor, the financial organization is obliged to inform each other beforehand of the beneficiary, guarantor or other person who personally ensures the fulfillment of the obligation of the beneficiary, with their written consent, and familiarize them with the documentation and data obtained in the credit assessment procedure abilities, as well as the fact that some job participant does not agree with the disclosure of personal data to other participants.

Financial organizations can approve loans indexed in foreign currency (euro, dollar, etc.) or so-called. loans with a currency clause, that is, define the type of currency exchange rate that is applied when approving and repaying the loan, as well as the calculation dates. In the case of loans with a currency clause, the amount of the approved loan is tied to the value of the foreign currency exchange rate, and payment for that loan is made in the domestic currency (Convertible Mark). By changing the exchange rate of the currency in which the loan is contracted in relation to the domestic currency (currency risk), there may be an increase (or decrease) in the amount of the installment or annuity, which users must especially keep in mind before concluding the contract.

Provisions of Chapter VI The Law on Banks of the Republic of Srpska on the Protection of the Rights and Interests of Users of Financial Services, financial organizations are obliged to apply from 01.12.2011. year, and all contracts concluded before that date were obliged to comply with these provisions within six months, i.e. until 01.06.2012. years.

Loan agreements in the amount of less than 400.00 KM and more than 150,000.00 KM are not subject to the provisions on the protection of the rights and interests of users of financial services in the Republic of Srpska, which users should keep in mind when contracting.

Legal entities are not subject to protection in the sense of the provisions of Chapter VI of the Law on Banks of the Republika Srpska, which regulates the protection of users of financial services. These provisions are applied exclusively in relation to natural persons, and only those who enter into a relationship with a financial organization for the purpose of using services for purposes that are not intended for their business or other commercial activity.

The organizational part of the Ombudsman for the banking system of Republika Srpska (hereinafter: Ombudsman) cannot release the user of the financial service (hereinafter: user), guarantor or other person from legally established obligations from the contract.

Within the framework of the Ombudsman, the so-called out-of-court procedures – consideration of user complaints and mediation, in order to try to peacefully resolve disputes between the parties. Due to this nature, no binding decisions are made in these procedures, nor can a solution to the disputed relationship be imposed on the parties.

Based on the knowledge and information collected in the complaint procedure, and after the statement of the financial organization, the Ombudsperson can*:

1. Propose a peaceful solution to the disputed relationship (mediation, mediation) between the user and the financial organization;
2. Recommend to the financial organization that, in order to resolve the disputed relationship, it undertakes certain actions or removes the deficiencies that caused the dispute;
3. It informs other competent organizational parts of the Agency about the determined situation for further action and execution of tasks within the scope of their powers;
4. Informs and directs the user (by providing answers, recommendations, opinions and instructions) regarding other activities and possibilities for ending the dispute.

*see the graphic representation of the procedure in the brochure “How to protect and exercise your rights?” on the Agency’s official website.

If a court or other competent authority has made a legally binding decision on an issue that is the subject of a disputed relationship between the user and the financial organization, the Ombudsman cannot act on your complaint or conduct a mediation procedure on the same legal matter.

In other cases, proceedings before a court or other competent authority do not prevent you from protecting your rights by submitting a complaint, first to the financial organization and then to the Ombudsman.

On the other hand, it should be known that even the procedure for consideration of complaints or mediation between the user and the financial organization does not prevent the realization of their right to judicial protection before the competent court, in accordance with the law.

In accordance with the Law on Banks of the Republic of Srpska (“Official Gazette of the Republic of Srpska No. 4/17, 19/18 and 54/19) the user has the right to close the account free of charge. In that case, it is necessary for the user to first settle the remaining obligations arising from the use of the account and to submit a request to the bank in writing.

Report on the total current liabilities of the individual (BF1);

Report on total expired/repaid debts of an individual, for the last five years from the moment of expiration/repayment (BF2).