Type Of Credit Agreement

The contractual documents themselves can be long and detailed, but it is important to read the terms and conditions before signing. In most cases, all types of credit (from credit cards to mortgages) have some kind of credit contract that must be signed and accepted by both the bank, the lender and the customer – the contract will not come into effect until the document has been signed by both parties and is still subject to a cooling-off period under current legislation. Interest rates and fees are only maximum amounts. The Department of Trade and Industry hopes that the credit sector will not « jump at maximum rates » and has stated that it has the power to adjust these rates quickly if necessary. « Development credit contracts » are credit contracts for the development of a small business, an education loan or a loan for the construction of low-cost housing. The maximum interest rate is 38.8% per year. A consumer can at any time, prior to termination, reinstate a late credit contract by paying all outstanding amounts, plus late fees and debt performance fees until today. The consumer can then recover the membership property, but not if the product has already been sold. These provisions describe the various promises and statements that the parties made to each other. It also lists exceptions to these promises.

It is very important to look carefully at alliances, because our recent study found that a considerable number of credit contracts are formulated so that borrowers can transfer assets to be used as collateral from the hands of lenders. The negative result for credit providers in common practice is that a lender asks the court for an « intermediate injunction » until the contract is terminated to protect threatened goods (such as a motor vehicle) from deterioration or deterioration. This order will allow the sheriff to place the goods on deposit until the legal action is closed, which can take a long time. The law does not specify whether lenders can still obtain interim foreclosure orders. The current practice of obtaining such contracts may continue. Before entering into a credit contract, the lender must provide the consumer with a free declaration and offer in the form prescribed by the regulation (form 20 of the settlement, for small credit contracts). No agreement has been reached at this stage; the consumer is not obliged to sign or pay a tax. This is a new evolution of the law that aims to protect consumers.

This document should contain the financial details of the proposed agreement (for example. B the amount of credit provided, the number and amount of payments, interest and other fees, payment required and credit insurance).