Improve new EU consumer credit rules – Consumers need better information about the credit supply – AK has created a new credit checklist for a better comparison of offers
Vienna (OTS) – The AK wants to tighten up the amendment to the consumer credit directive presented by the EU. The newly planned standard overview with important credit information should be right at the beginning. In addition, the rules for credit advertising must be improved with regard to the figures, and more precise information is required for total costs and the annual percentage rate of charge.
In July 2021, the EU Commission presented an amendment to the consumer credit directive, in which some innovations are planned. The AK demands:
+ Standard information – Important information up front: The newly envisaged “standard overview” with the most important points on the consumer credit offer should be placed in the center of the information. In this way, consumers can grasp the essential content of the credit agreement more easily and quickly. That would also be well suited for online contracts and cell phones. The effective rate and total amount should be clearly highlighted. Bank’s own condition sheets with many information gaps should no longer be allowed.
+ More specific regulations for credit advertising: The existing regulation for figures in credit advertising is inadequate. At present – despite the existing regulations – many bait offers are still being made that are not informative and misleading. In the future, advertising with numbers in credit advertising is to be regulated more strictly. In future, the APR should be clearly highlighted and no longer – as usual – be allowed to be hidden in small print footnotes. Additional figures beyond the representative example, such as lending rates that are too low, which normal earners can never receive, should no longer be allowed.
+ Better information on total costs and APR: According to the current legal situation, only the credit insurance required by the bank must be included in the total cost of the loan. This overly flexible provision should fall:
Credit insurance should always be included in the effective interest rate or in the total costs – regardless of whether it is taken out voluntarily or required by the bank.
The AK has created a new “checklist for consumer loans” – it makes it easier for consumers to compare different loan offers.
SERVICE: You can find the AK practice test for consumer loans and the checklist at www.ak.at/mysteryshopping-kredite.
Inquiries & contact:
Vienna Chamber of Labor
Doris Strecker
(+43-1) 501 65-12677, car: (+43) 664 845 41 52
doris.strecker@akwien.at
http://wien.arbeiterkammer.at
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