According to EU lawmakers, the new EU regulations on Consumer loans It will adapt to in the digital age and will also include borrowing by citizens European Union by Internet. This is especially true of new formats creditsSuch as the “buy now, pay later” programs that online stores are increasingly using, and short-term high-interest loans. This is to help protect consumers from the risks often involved in these loans, including over-indebtedness.
The high cost of living and the resulting crisis war In Ukraine put millions of consumers in a difficult situation Financial issues. increasing number Europeans He takes loans to finance his needs. It is important that consumers in the European Union are adequately protected against fraudulent practices, whether they are obtaining credit online or offline, Commission Vice-President Vera Jourova said on Friday.
EU change of regulations. consumer under a microscope
According to the new regulations, the lender will have an obligation before the loan is granted A comprehensive examination of the creditworthiness of the borrower. This will help prevent irresponsible lending practices and avoid lending to people who are highly indebted or at risk of being unable to meet their credit obligations.
Today, consumers are sometimes persuaded by some retailers to take out a loan to purchase certain products, including household appliances such as utensils and bedding, and they are given a loan even if their financial situation is unstable and sometimes even if they do not have an account with it. bank. This can lead to a debt spiral, because the borrower often takes out another loan to pay off the previous one.
The lender will refuse the loans
Now in case of negative evaluation, lender You will be obliged loan refusal. On the other hand – as lawmakers stress – the assessment of the creditworthiness of a person applying for a loan should be done on the basis of important financial data, such as income and employment information, and may not include sensitive personal information, such as health data.
Earlier, for example, People who have suffered from cancerThose who applied for a loan that required insurance had to pay much higher rates than healthy people. Now, after a good time These people will have the right to be forgottenSo that their previous illness does not affect their insurance rates.
– For the first time in history, we have been able to enforce the guarantee of the right to be forgotten for cancer patients in EU regulations – says left-wing Czech, MEP Katerina Konecna, who negotiated the regulations on behalf of European Parliament.
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Advertisements under special supervision
Subsidiary banks and credit brokers will be subject to a process of registration, market admission and supervision by the independent national authorities. Lenders will have to lend to their customers clear and frank information about the loan, Also about the total cost of the loan. Also, loan advertisements should always contain clear and explicit warnings that borrowing money generates additional costs.
Ads must not encourage consumers to use credit, indicating that it will improve their financial situation, help them get rich, save or raise their standard of living. Loan advertisements must now carry a warning similar to that on cigarette packages. Konekna adds that some types of risky ads will be banned in member states.
To prevent misuse and overcharging borrowers The cost of the loan, the legislator put in place additional measures, such as setting interest rates, the annual percentage rate or the total cost of the loan.
In the case of K.When a customer has repayment problems, the lender will be forced to help him For example by providing advisory services, dividing the arrears into installments and not charging him additional fees than those necessary to offset the costs of the arrears, and the aim is not to charge consumers already in debt with additional fines.
credits. Two weeks to resign
The grandmother will be the person who took the loan He will be able to withdraw from it within 14 days without giving reasons. Consumers are also entitled to prepay and reduce the total cost of credit. Information about this should be provided to the borrower before the conclusion of the loan agreement, and he should also receive clear instructions on how to calculate the loan in case of early repayment.
The European Union organizations welcomed the decision of the European Union institutions consumer.
– This agreement is good news for consumers who will include additional protections, especially in the case of payday loans and small loans, including the type – buy now, pay later. This is particularly important for people who are struggling financially, as it will help prevent them from falling into a spiral of debt, says Monique Goens, director general of the European Union’s consumer organization BEUC.
The regulations apply to loans up to PLN 100,000. euro.
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