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New rules for granting consumer credit

On December 18, 2011, new rules for granting consumer credit came into force. The changes are significant, so you should read them. The most important of them include: covering higher amounts, introducing a uniform information form and a longer time to withdraw from the contract.

A consumer loan is any loan taken for purposes that are not related to the conduct of business (e.g. cash loan). We also deal with consumer credit when shopping in installments. The new regulations have been regulated since December 18, 2011, by the Consumer Credit Act.

After the new rules are implemented


It is much easier for us to take out loans in other European Union countries. The new regulations include loans up to USD 255,500 or the equivalent of such amount in a foreign currency. From now on, all financial institutions must apply the new act, including credit unions (cooperative savings and credit unions) and non-bank companies.

According to the new rules, we now have 14 days to withdraw from the contract, instead of 10 days from its conclusion. The consumer will not incur any costs associated with withdrawal from the contract, except for interest for the period from the date of payment to the day of repayment of the loan.

A very important change is also the introduction of a uniform information form containing all the most important information such as loan costs, interest rate, total repayment amount, collateral required and insurance information. A standard form has been introduced in all Member States so it will easily compare different offers.

The changes also concern the granting of mortgage loans

The changes also concern the granting of mortgage loans

Among others in the scope of information provided to the consumer. He must be informed of the total loan amount, own contribution required, repayment dates, loan cost and total repayment amount.

The introduced provisions eliminate the maximum threshold of 5% of the total amount of all fees, commissions and other costs related to the conclusion of a consumer loan agreement.

Another important change is the presentation of information in ads. Now the new law requires that in addition to the APRC (the actual annual percentage rate), the consumer should receive the entire package of detailed information. This is, inter alia, the interest rate along with the separation of fees included in the total cost of the loan taken and its total amount.

The changes also apply to early loan repayment. Now financial institutions that grant loans will be able to charge compensation if the consumer repays the loan earlier.


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