Financial services

In the case of higher expenses, it has become quite common to use loan money. Loan money can be understood as a loan, leasing, installment payment, or credit card usage. These are all types of consumer credit and are subject to the same legislation.

In Estonia, as elsewhere in Europe, the principles of responsible lending, which impose obligations on both lenders and consumers, apply.

Before you take out a loan, installment or lease, or use a credit card

  • Consider offers from different creditors: Accept an offer from several different companies before making a decision.
  • Request a factsheet with the offer to compare the terms and conditions listing all the major credit conditions;
  • Ask the creditor for a copy of the draft contract next to the fact sheet so that you can read it thoroughly before signing.

If the contract also requires insurance, such as car leasing and home loans, you should know that you can also take out the policy with an insurer of your choice, and not just with a company recommended by the creditor.

KNOW THAT YOU MAY WITHDRAW THE CONSUMER CREDIT AGREEMENT within 14 DAYS.
IN THE CASE OF A CONSUMER CREDIT AGREEMENT RELATED TO RESIDENTIAL REAL ESTATE, THE CONSUMER MAY WITHDRAW THE CONSUMER CREDIT AGREEMENT WITHIN SEVEN DAYS.

If you wish to withdraw from the consumer credit agreement and the economically related sales contract within 14 days because the product transferred under the contract is defective, you must inform the seller of the defect. However, neither the creditor nor the seller can prevent you from exercising the right of withdrawal. You do not have to agree to the correction of the defect, the replacement.

If you have a problem or complaint, please contact your financial services provider first. If the financial services provider does not resolve the complaint to your satisfaction, you can also contact the Consumer Protection Committee or ask the FIN-NET network for information about the competent authority in your country. FIN-NET network facilitates out-of-court settlement of disputes if the consumer and the financial services provider are based in different Member States of the European Union or Norway, Iceland and Liechtenstein.

You may prematurely fulfill some or all of the obligations under the consumer credit agreement. In this case, you do not owe the creditor any interest and other costs for the period of non-use of the loan. The creditor has the right to demand reasonable compensation from you, depending on the nature of the loan interest rate and the term of the loan. The basis for granting the right to early repayment and compensation is § 411 of the Law of Obligations.

Remember!

  • Assess your financial situation appropriately, taking into account all your monthly expenses, and disclose this information honestly to the creditor.
  • Read the terms and conditions and if something is unclear, contact the creditor.
  • If you run into payment difficulties, do not ignore the situation, but contact the creditor immediately.
  • If necessary, consult a debt advisor.

Last updated: 08.04.2021