Financial services

A reminder for financial service providers when concluding financial service contracts with consumers

Standard Consumer Credit Info

The consumer has the right to receive an information sheet with the requested credit's main details so that the consumer can compare the different offers and take into account all the circumstances to decide on the consumer credit agreement that best meets their wishes and needs.

You must give the information sheet to the consumer before the conclusion of the contract. The consumer must also be given sufficient time to study the information sheet and compare the different offers. This means that the consumer can take the information leaflet home to familiarise themself with it.

Draft contract

The consumer has the right to receive a draft contract free of charge before signing the contract and to take it home with them for inspection.

Providing clarifications before concluding a consumer credit agreement

The creditor or credit intermediary is obliged to provide the consumer with sufficient explanations before the conclusion of the consumer credit agreement to enable the consumer to assess whether the consumer credit agreement offered meets their needs and financial situation. In the case of a consumer credit agreement relating to a residential property, the creditor or credit intermediary shall, in addition to the previous, be obliged to provide the consumer with explanations about the ancillary contract offered to the consumer so that the consumer can assess whether the ancillary agreement presented to them meets their needs and financial situation.

THE CONSUMER HAS THE RIGHT TO WITHDRAW FROM THE CONTRACT WITHOUT GIVING ANY REASON WITHIN 14 DAYS OF THE CONCLUSION OF THE CONTRACT.

The consumer has the right to withdraw from the consumer credit agreement within 14 days. Still, the consumer is obliged to pay the creditor interest for the period during which the credit was granted, i.e., the use period. The creditor must inform the consumer of the right of withdrawal at the time of the contract's conclusion.

Adherence to the responsible lending principle

The creditor has a duty of responsible lending in relation to consumer credit, which requires the creditor to exercise due diligence in assessing the consumer's creditworthiness.

In assessing the consumer's creditworthiness, the creditor must take into account all the factors of which he is aware that may affect the consumer's ability to repay the credit on the terms agreed in the agreement, including the impact of the consumer's financial situation, regular income, other financial commitments, past payment performance and any increase in the monetary obligations arising from the consumer credit agreement, determining the scope of the assessment required following the terms of the consumer credit agreement, the information available on the consumer and the size of the financial commitment to be made.

If the conclusion of the credit agreement also implies insurance (e.g., car leasing, home loan), the creditor must explain to the consumer that they can take out an insurance contract with an insurer of their choice and does not have to choose a policyholder recommended by the creditor.

Last updated: 06.04.2021