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Large Credit Agreement Nca

Consumers have the right to obtain an offer and a credit contract in an official language that they read or understand, as long as it is reasonable. All documents that are not required must be available in a plain language (a language that an ordinary consumer understands with average reading and writing skills and minimal credit experience). The NCA explicitly defines a “grand agreement” – if the agreement is a credit agreement that exceeds the threshold set out in S 42 (1) of the NCA (now R0 – GN 513 of May 11, 2016), whether it is a single transaction and the creditor regularly participates in the credit sector, the NCA will apply. In addition, settlement disputes can be referred directly to the appropriate ombudsman if it is a financial institution (such as a bank), a consumer court or an alternative dispute resolution mediator. [11] With the agreement of the parties, the order can be recorded in writing and a judicial or judicial decision can be made. Third, the NCA`s goal is to improve the protection of vulnerable small consumers. In the case of corporations, the protection of NACAs is not limited to small, but also further restricts protection, also excluding an ANCA-regulated credit contracts from the essential protection of NACAs, such as affordability and careless lending rules [s6]. This result is so unfair that borrowers are discriminated against very small borrowers (almost without exception from the poorest communities). The law itself stipulates that service charges must vary from the main debt, i.e. they should be higher for large loans and lower for smaller loans. That is not the case. Regulations should be amended to set service charges at a percentage of the loan amount, subject to a minimum and cap (as is the case with the introductory tax).

Service charges should be waived for small credit contracts and, if applicable, the maximum interest rate should be increased. If the service fee is not amended or abolished, it should be challenged in court. Credit contracts can only be amended in specific circumstances, such as reducing or increasing credit limits. Instead, consideration should be given to the parties, the nature of the agreement and the exclusions expressly provided for by the NCA. During this transaction, a consumer is not entitled to his credit card (z.B his credit card); nor can he enter into any other credit contract. A credit provider who enters into a credit contract with a consumer while the consumer is in the process of controlling the debt risks making the credit contract a reckless credit. If a credit contract is found to be unwise, the credit provider cannot enforce the agreement and the consumer`s obligations are removed. Existing customers who entered into credit contracts prior to the adoption of the NCA are influenced by a change in service charges by the NCA. Some royalties that were common practices (for example. B early billing or administration fees) cannot be collected under the ANCA. If an existing customer changes a contract or requires other credits, they are submitted to the ANCA and a affordability check is conducted for the new credit application. In all credit contract proceedings, a court may declare a credit contract unwise, in which case the court may issue an order if the loan is not subject to the ANCA, the credit insurance on the ground is also not subject to the ANCA.

The law pursues the ambitious and extremely difficult goal of promoting a competitive, efficient and efficient credit economy and a fair, transparent, accountable and accessible market. The main theme of the law is consumer protection. Section 3 of the Act contains a number of methods used by law to achieve this objective.

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