In the future, borrowers will be better protected than before from dubious decoy offerings. You get more information and can compare credit offers better. In addition, the rights of revocation and return of consumer contracts are standardized. In the following, the most important changes in short form should be pointed out:
Information and explanation of the contract: In future, consumers will be informed about the essential components of the loan before concluding a loan agreement. This allows them to compare different offers and make an informed decision. The new regulation thus relies on the responsible and independent consumer. As soon as the choice of a particular loan becomes apparent, the consumer must also be informed about the main features of the contract.
Advertising for loan agreements will be more regulated. Anyone who solicits for the conclusion of loan agreements, can not turn out only a single number (such as a particularly low interest rate). Rather, he must also specify the other costs of the contract and explain this information with a realistic example.
As a result, decoupling offers are prevented and consumers are enabled to use meaningful information to weigh up the pros and cons of concluding a contract.
Pattern for consumer loans
In the future, uniform patterns for informing consumers will apply to different loan agreements. Based on these patterns, all costs of the loan can be seen. Different offers can be compared better than before.
The samples are valid throughout Europe, so that customers can also obtain and compare offers from other European countries.
The termination of loan agreements is newly regulated. Terminations by the lender are only permissible for perpetual contracts if a notice period of at least two months has been agreed. Consumers, on the other hand, can terminate a perpetual contract at any time. The period of notice for the consumer may not exceed one month.
In the case of fixed-term contracts which are not secured by a land charge such as a mortgage or mortgage, consumers may in future repay all or part of the loan at any time. If the lender requires a prepayment penalty in such a case, this is limited to a maximum of one percent of the prematurely repaid amount.