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Beware of loans, especially before Christmas

With the approaching Christmas, the intensity of offers of various loans is increasing. Advertising can often be summed up in words: do not you have money for gifts? Take a loan, pay off and do not ask how much and how long. Many people are so indebted to debt. In addition, they often do not know that installment sales are actually a tied consumer credit - and giving untrue data may come into conflict with the law.

Short joy and long worry can be summed up by pre-Christmas loans. Before Christmas, more than ever, marketing campaigns lead buyers to spend unnecessarily and try to pull out of their pockets what they do not have. At the same time, the gift loan is one of the greatest unnecessary things you can borrow. If you have to borrow something, it should serve longer than you pay. It is certainly not wise to borrow on toys for children or fashion electronics. If you want to share something in your household, wait for your sales , maybe there will be no reason to indebt, because many products will be cheaper.

Do you remember the last time you saw the banner with the inscription "buy in installments" ? Surely you will not have to search long, the deferred payments for goods are almost ubiquitous. "Many consumers use this trend, but not everybody realizes that they are actually making a special type of loan with this payment option. Hire sale is synonymous with tied consumer credit , " says Lukas Zeleny, head of the legal department of consumer organization dTest. This in practice means that it is intended solely for the financing of certain goods or services and is usually offered to you directly by a merchant in the shop. But do not be fooled - the dealer only mediates your service, you always conclude a loan agreement with a provider, that is, a bank or other non-banking corporation.

It is important to recall that the law places considerable emphasis on the ability to repay the amount borrowed . It focuses not only on the responsibility of consumers in the role of debtors, but also on the providers themselves. Their duty is to verify whether the applicant is able to repay the loan, and must prove such a check. So, if you want to buy the goods in installments and want to show you the amount of income confirmed by your employer, a detailed analysis of family incomes and expenses, or information on the number of dependent children, know that these questions are not just curiosity but legal duty. "The provider will also be interested in your past credit history, ie whether you have a record in one of the credit registers. For final judgment, it's important not only whether you already have a loan, but you also assess the total amount due or your payment morale, " explains Zeleny.

Are you saying that a shop vendor does not need to know everything about you, and so do some shards of your financial situation? Do not do it better. "Making false or grossly distorted data, or the concealment of important information, can be considered a crime of credit fraud ," warns Green. Much better would not even be a provider that would not sufficiently trust your ability to repay. Infringement of this obligation threatens the fine with a fine of up to several million crowns. Moreover, their business would be totally unnecessary, since they borrow money to the borrower when it becomes clear that they will not be able to repay them, and the credit agreement becomes invalid. The client then repays, at his option, only the borrowed amount (principal) without interest and other penalties.

Source: tz

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