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Those who can not pay, he should not have debts

The new Consumer Credit Act effective from 1 December this year does not place high demands on a company providing lending, but also for potential borrowers. Who is unable to repay debts, does not get a loan, and if it gets to the lender definitely not earn it.

When the loan is repaid the loan and credit card is a means regular "plugging holes" in the family budget, it is a debt carousel stopped very difficult. "Financial institutions often complain about the low level of financial literacy of Czech consumers, but it's pretty hypocritical for themselves invest millions in advertising that slogans, everything on the installment plan 'creates the impression that those who owe, not lived," says Milos Borovicka legal adviser dtest, and continues: "the law therefore to lenders carries part of the responsibility for ensuring that the loan will be for the debtor himself dangerous and that it will be able to repay." adequate, adequate and reliable information to úvěráři obtain from their own candidates, and if the they arise doubts about what the consumer's ability to meet the obligations of the planned contract must provide the loan.

Breach of the duty to examine creditworthiness may have several consequences. One of them is fine from the Czech National Bank up to EUR 20 million. "For consumers, more importantly, that the contract concluded on the basis of incorrect assessment of the ability to pay will be invalid. Borrower does not have to pay interest and penalties, "said Juniper, adding:" Of course it must return borrowed principal. "The new regulation fixes a problem where the consumer had to return everything right all at once, which could often only be solved by additional loan problems and only postponed. New principal debtor must repay adequately its capabilities and if they are in doubt about what options the consumer has actually decide on the method and amount of repayment court.

Legislation does not encourage consumers to reconsider any contract. It is indeed their duty to provide complete and correct information and if the provider explicitly indicate the error may be responsible for the crime of loan fraud. "Sanctions should lead primarily to the prevention and precautionary providers that did not lend to everyone. Insolvency proceedings, social problems and the like are concerned with others, not just those who lend irresponsibly, "says Juniper, and concludes:" It would be ideal if every consumer be able to judge for yourself what is convenient for him and what is not. Nowadays, however, are financial products so complex that their assessment often plain common sense is not enough. "With the new law on consumer credit will have the legal and marketing departments lenders focus more on responsible and ethical business instead of relying on ignorance and asymmetries between the capabilities the average person and professional sales team.

Source: tz

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