Consumer Credit Rights

Consumer Credit Rights

Before the conclusion of the contract, the banking client has the right to be informed clearly and completely about the characteristics of the contract so that it can adequately compare the different proposals and make an informed and informed decision.

The bank client can consult several credit institutions to obtain different simulations and, thus, compare alternative proposals. The interest rates and charges for the different proposals should be compared on the basis of the annual percentage rate of charge (APR).

The customer is entitled to a copy of the draft of the credit agreement, if requested, without having to indicate any data in return.

 

Right of free revocation of the credit agreement

credit agreement

The client has 14 calendar days from the date of signature of the contract or the receipt of a copy of it, to exercise the right of free revocation. In this case, the customer does not need to justify the decision to revoke the contract.

However, the client should note that, exercising the right of revocation, he will have to pay the institution, within 30 days, the principal and interest accrued from the date of use of the loan up to the date of repayment of the principal, calculated based on the nominal rate of the contract.

You may also be required to incur any expenses incurred by the institution before public authorities.

 

Right of access to the results of the database query

Right of access to the results of the database query

Credit institutions may reject the credit application justifying such refusal with the information which, in respect of the customer, appears in databases of credit liabilities or other databases considered useful for the assessment of their creditworthiness. In this case, the client has the right to be informed immediately and free of charge of that fact, as well as of the elements that, in his respect, are contained in the databases consulted.

 

Right to assistance

The banking client has the right to be clarified by the institution so that it can assess whether the proposed credit agreement is adapted to its needs and financial situation.

Institutions should therefore provide the customer with pre-contractual information describing the essential characteristics of the products offered and the specific effects of those characteristics, including the consequences of non-payment.

This pre-contractual information must be delivered to the bank customer on reproducible durable medium and presented in a clear, concise and legible manner.

 

Right to information during the term of the contract

Right to information

During the term of the agreement, credit institutions should periodically make available to their clients a detailed statement with information on loan developments.

The statement should be sent, as a rule, monthly, except in some situations where, for example, the customer does not use the credit card or the benefits are charged at a different frequency from the monthly. In such situations, the statement must be sent when there are movements associated with the card or at intervals equivalent to that fixed for the payment of benefits, and in any case, at least one annual statement must be sent.

The information shall be provided on paper or on another durable medium. The customer always has the right to paper information if he expressly requests it. In addition to this information, institutions must provide specific information, either in an extract or in an autonomous document, in cases of default, default of default or early repayment of the credit agreement.

 

Early Redemption Right

Early Redemption Right

The client may reimburse the credit agreement in advance, in part or in full, and must notify the institution with 30 days notice by letter or durable medium.

 

Early Redemption Fee

Early Redemption Fee

If the early repayment occurs in a period in which the nominal rate of the contract is fixed, the customer may have to pay a commission that can not exceed:

  • 0.5% of the amount of capital repaid if the period remaining between the early repayment date and the stipulated date for the expiry of the credit agreement exceeds one year,
  • 0.25% of the amount of capital repaid if the period remaining between the early repayment date and the stipulated date for the end of the credit agreement is less than or equal to one year.

No prepayment fee is payable if:

  • The repayment occurs in a period in which the nominal rate of the contract is variable;
  • It is a credit agreement in the form of an overdraft facility;
  • The reimbursement was made in execution of an insurance contract to guarantee the credit.

In any case, the commission payable for early repayment may not exceed the amount corresponding to the amount of interest that would be required of the customer for the period between the date of the early repayment and the date stipulated for the end of the fixed rate period.

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