What is consumer creditApril 20th, 2012
Consumer credit is really any kind of loan that is not made on the goals related to economic activity. This is an agreement concluded between the consumer and the entrepreneur, which relates to the loan amount to 25 000 EUR or its equivalent in another currency. It is worth mentioning that a person who provides such loans need not be a bank.
Consumer Credit Act gives the consumer a number of laws such as the right to full information about the loan. The entrepreneur, who gives us the creditshould conclude a written agreement, unless other regulations provide otherwise, and shall promptly deliver to the consumer signed and dated contract.
When a borrower is late and does not pay the full loan installments, for at least two payment periods within the period specified in the contract, the lender may request, in accordance with the principles of regulated contract, to pay the outstanding installments or parts thereof within a period not less than 7 days from the date of receiving the call. The total amount of all fees, commissions and other costs associated with entering into a contract for consumer credit cannot exceed 5% of the amount of credit granted.