The Consumer Credit Act lays down certain regulations that all lenders are required to comply, but does not state anything about “quick and easy credit.”
With the enormous credit boom quick and easy it is logical to ask about regulations they must abide by law, and although it seems uncertain, there is no legal limit for interest rates of such loans, which can reach up to 20 %.
Yet consumer credit, which can be funded from vehicles, travel, appliances, etc.., Which are from 150 € to 20,000 € must comply with regulations prescribed by the Consumer Credit Act. It stipulates that all contracts are in writing the terms of the contract, the Annual Percentage Rate, timing of payments and the period and the items included in the total cost of the loan.
What we do is very clear in this Act is that every financial firm is necessarily obliged to accord, before signing the contract, a document with all the conditions of credit.
In this document the offer is considered binding and requires the credit company to respect what is provided there for ten days. Another requirement that these companies must comply with in advertising is to mention the APR interest rate, but nothing is said about the fine print that still exists in some contracts and that functions as a trap where many customers rely on their conditions bank promises, they fall easily.
The advice is be very careful with the contract because at that document contains absolutely all the conditions of the loan, it is important to use the law to possess the binding offer, because in those ten days of validity can study thoroughly the loan and decide whether to sign or not.
Posted in 
Tags: