The drastic reduction in interest rates conceals or conceals the actual cost of credit when initiation and service fees are added. These fees may remain largely hidden, with an emphasis on interest rates (better known to consumers) when products are marketed. Fees help keep interest rates low, which makes credit cheaper, although credit is not cheaper. Abandoning the cost of credit away from interest and fees (which consumers do not know about) will increase the likelihood that consumers will be misled about the actual cost of credit. Many are attracted to borrow money that will cost much more than they originally anticipated. It is important that paralegales understand the risk that this concealment of the actual cost of credit will occur in order to warn their customers of this danger. Whereas the Credit Contracts Act previously excluded agreements in which the debtor became the owner of the property or re-established the ownership or use of the goods of the definition of “rental-sale,” the amending law explicitly included these types of credit contracts in the definition. This means that the categories of credit contracts under the definition of “credit transaction,” and thus the application of the law, have been extended to these types of transactions. “The provisions of this Act apply to such credit contracts or categories of credit contracts, which the Minister may set from time to time by notification to the Official Journal: unless the Minister has the authority to apply these provisions to credit contracts, in which this does not apply to large contracts such as mortgage bonds. When a consumer wants to pay a loan, they must first cancel the lender for a period of three months. When a mortgage is terminated, the consumer is responsible for cancelling bonds. A much larger number of applications for default judgments on credit contracts must now be referred to a judge[16] instead of being dealt with by the court administrator. This will significantly increase the workload of judges and could result in much longer debt enforcement procedures, which could lead to frustration among credit providers.
Consumers can pay in advance any amount owed under a credit contract (for example. B payments due) and credit providers are required to accept these amounts, even if they are not due. These payments are first used for unpaid interest and fees, and then for the reduction of the main debt. A credit provider must not use an identity card, credit or debit card, access card or PIN to obtain a credit agreement or to recover the contract. A violation of this provision is punishable. If a consumer is late, the credit provider must inform the consumer in writing of its failure. It is in fact a letter of claim. However, the communication must do more: the credit provider must propose to the consumer that the consumer pass on the credit contract, among other things, to a debt advisor in order to resolve the dispute or to agree on a plan to update the payments.
The regulations provide that different categories of consumer credit information can be retained by credit bureaus. For example, civil judgments may be retained for the first credit facility where a credit provider provides goods or services or pays an amount to the consumer. The consumer`s obligation to pay the price or refund the money is set aside, for which the consumer pays interest and fees.