- Our rights are protected when we enter into credit agreements (credit cards, hire purchase, mortgage loans, etc.) with financial institutions and other natural or legal persons who grant credit facilities.
- The legislation covers agreements for mortgage loans , amounting to € 200,000 and other consumer loans from € 200 to € 75,000.
- In any case you can with your written notice to the creditor to cancel the agreement within 14 days .
- You are entitled to pay off all your outstanding amount before the expiry of the agreement .
- The financial institution shall, in each case to provide all the necessary information that will help you choose the correct product that interests you . The financial institution must notify you in advance about the type of credit , the elements and the geographical address of the creditor , the total amount of credit, the credit period , the borrowing rate , the total amount kithei will be paid by the consumer with a representative example.
- The financial institution has the obligation of assessing the creditworthiness of the consumer , subject to the provisions of the Processing of Personal Data Personal Data Act . The consumer is entitled to receive complimentary research results . The financial institution must provide the consumer with a copy of the relevant contract .
1. What action we should take before we continue with a loan
- Compare agreements , terms and APR of various financial institutions to find the most suitable for your needs and at the same time the most advantageous deal.
- Be sure you know all the requirements of the financial institution on the agreement to be signed by you.
- Make sure that you carefully read all the terms of the agreement , to make sure that there are no small letters that you obtain injunctions to read and ask any explanations in layman terms if you do not understand .
- Be sure you can pay the installments required by the agreement .
- Sign agreements only if all spaces are completed. Do not sign blank documents or documents containing the terms on which you may have doubts
2. What does a credit agreement include?
Credit Agreement ( and any related security agreement ) concluded with a financial institution should include
(1) be in writing and signed by you and by a person authorized by the financial institution
(2) specifies the type of credit
(3) indicate the duration of the credit agreement
(4) contains the names and addresses of the parties at the time the agreement
(5) is given to you personally by the original creditor or a copy at the time of signature. Alternatively is delivered to you or sent or copied by registered letter within 15 days of the conclusion of
(6) contain a statement that you have the right to terminate the agreement and how they can exercise
(7) indicate the total amount of credit and the conditions governing the drawdown
(8) include a statement of the APR and statement in relation to the conditions modification
(9) indicate the total amount to be paid by the consumer in a representative example
(10) contain a statement as to how any transfer of the rights of the creditor to a third person
(11) contains a reference with the costs we have to pay, if we disobey any contractual obligations ( non- payment of installments )
(12) stating the charges for having an account or accounts to which enrolled both payment transactions and drawdowns, the notary potential costs , and all expenses for the conclusion of the agreement
3. What is the APR
The APR (Annual Percentage Rate ) is the total cost of your loan ( including interest and all bank charges you are asked to pay ) , expressed as an annual percentage of the amount you borrow .
The APR gives a complete picture of the total cost of a loan and is the best tool in the process of comparing different plans , either of the same Bank or other banks together.
4. We can anticipate our loan
You have the right to repay the entire outstanding balance of your loan before the expiry of the Agreement by giving written notice of termination to the lender , which should reduce the total cost of credit. In such a case, the creditor is entitled to demand payment of the statutory administrative costs.
5. We can cancel an agreement
By written notice to the creditor you can change your mind and cancel within 14 days of receipt of the Agreement.
Check that you have not waived that right by signing any declaration as to the creditor.
6. How can we move on, to restructure a loan
The financial institution is required in case we are unable to pay the required installments for existing loan , to invite you to negotiate for restructuring of your loan.