Public Interest Credit Agreement

A lender must advise a debtor before reporting adverse information to a credit bureau. Anyone can challenge the accuracy of all information reported or held by a credit bureau. The credit bureau or NCR is then required to identify and correct the erroneous information free of charge. It does not remove from the scope certain aspects that were not included in the original proposal, such as real estate contracts. B, which will be the subject of future legislation (see the Green Paper on Mortgage Credit). That is why the Commission has proposed to exclude eur 50,000 loans from the proposal. In addition, consumer credit is mainly used as mortgages. 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. A credit bureau is a company that is responsible for receiving reports or investigating credit applications and agreements, payment designs and other consumer credit information. Credit bureaus are also responsible for the production and maintenance of data and the publication of consumer reports based on this data. As noted above, credit bureaus were required to register with the NCR by July 28, 2006.

Credit agencies provide information that could prevent consumer over-indebtedness and reckless lending. Solvency allows people to use a product or service at an interest rate price before paying that product or service or, if an item cannot be paid from a single month`s salary, spread payments over several months. The debt verification procedure may well be used by smart consumers to delay or avoid payments under a credit contract. This is because there are many legislation that limits the rights of credit providers to enforce their claims. However, if the consumer is under an audited credit contract, the credit provider can provide the consumer, the debt advisor and the NCR with the end of the audit. This notification can be made at least 60 days after the date of the debt review request, i.e. if the debt review process takes too long. The credit provider can then take steps to enforce the agreement. The court then has the power to order the resumption of the debt review, if any. A consumer`s request for a debt review has serious implications for their creditworthiness and for future agreements.

Much of the responsibility for implementing the objectives of the Act rests with the National Credit Regulator (NCR), which oversees the entire consumer credit industry, including all the functions and responsibilities of the former Microfinance Regulatory Council (in the context of microcredit). The NCR is an independent, board-led organization with a Chief Executive Officer who can appoint inspectors and investigators. The crucial role of credit in the economy is explained in the policy framework of the Ministry of Trade and Industry of August 2004: the National Credit Act has made great strides in consumer protection and the new restrictions on interest rates will bring welcome relief to many borrowers.

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