What changes are ahead of us? – Consumer Credit

A new Consumer Credit Act, which promises greater consumer protection, will come into force in December 2016. But what benefits will it really bring us and what to watch out for?

Let’s be honest. Lending is a business like any other, and the lender pursues its financial profit primarily by operating it. The point is, however, that the creditor should not take advantage of the applicant’s unfavorable situation, act fairly and do not seek to maximize his profits at the expense of the debtor. It is against such unfair practices and all rogue that the new law is aimed.

The new legislation will significantly tighten


The conditions for non-bank lenders. Previously, virtually anyone who had a trade license could lend money. This has been used by many entrepreneurs with dubious business practices. Those under the new law rang.

Under the new law, lenders will have to fulfill a number of strict conditions, prove that they have a registered capital of 20 million and apply for a license with the Czech National Bank. Only companies thus verified and registered will be able to legally grant loans.

This will literally clear the non-banking market from all dubious providers and make it easier for consumers to navigate. If you are considering a loan, check that the non-banking company is licensed by the Czech National Bank and is on its register.

Every registered company should have this information

Every registered company should have this information

The law also brings other changes. It regulates, for example, the conditions for late repayment. Have you been late with the installment? Are you afraid of exorbitant sanctions and charges or even of losing all your property? Here, too, the law should stand on your side.

The fines and penalties that companies charge for late repayment are to amount to a maximum of half of the total amount owed and no more than 200,000. However, beware of fees for reminders, which are not included in the penalties and are therefore not limited. If you are late with the installment, find out what the company charges for them, so that you are not unpleasantly surprised.

All loans and credits will have to be governed by the Consumer Credit Act and will no longer be circumvented. One of the obligations of the provider under the new law is to provide the consumer with a pre-contractual information form giving precise details of how much the borrower will pay in total, what the interest rate and APR are, and the provider will also have to quantify precisely brokerage fees and commissions.

Thanks to this measure


The consumer will be able to realistically compare the parameters of individual loans and choose the one that will be most advantageous. As advertising slogans say: no more hidden charges and loops!

When you collect a loan, ask the provider for all this information. If he refuses to provide them to you, try elsewhere. Why let yourself be tricked by fraudsters when you can choose from tens to hundreds of reputable and proven companies ?!

One of them is E-Money as, which has been providing the popular non-bank loan Good Finance for more than 10 years. Get a convenient US mortgage from a proven company. Apply for a Loan!

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