How the Consumer Protection Code for Loans works.
To sign a loan agreement, you must know about your rights and duties. When we go to borrow, there are so many rules, bureaucracies and documents that it seems that we have more duties than rights. But, this is not quite the case. The consumer protection code was created precisely to help us understand that banks, like us, also have obligations and must comply with them. Find out what the rules are for those who give and who apply for loans.
The loan must be good for both sides
Who said that only banks need to profit from the loan service? Of course, the goal is to make a profit, but that doesn’t mean you have to lose. You should know that the first step in taking advantage of borrowing is to understand the reason that led you to it. Whether to pay off debts, pay for medical tests or start a business, for example, the important thing is to understand where the money goes.
Depending on the reason, it is better to save money than to borrow. So, if you want to change your cell phone, buy a new bed or travel, for example, avoid putting your feet in your hands and getting into debt. In this case, the ideal is to use the good old method of the piggy bank or study more about financial education to learn how to invest and make your money pay off in the time you need.
Do you already know the reason for the loan? So let’s go to the next step!
After figuring out why to borrow, it’s time to learn how to use this service in the best way. The consumer protection code has some considerations about it. See what they are:
Right to information: Article 52 says that you have the right to be informed about the CET (Total Effective Cost) of the debt, the annual interest rate, the amount of each installment and the sum of the total debt. The same goes for all fees and charges that are charged. Even though the manager explained everything to you during the conversation, it is necessary that each amount is written in the contract.
Price calculation: Article 3 of Decree 5.903 / 06 talks about the fixing of product prices. It ensures that you have the right to know how interest calculations are done. If the bank charges additions and charges that interfere with the value of the financing or installments, it must provide you with all information about prices. On the website of the Good Lender Bank, it is possible to check the average interest rate in the market.
You will be able to assess whether or not the bank is doing bad and charging too high fees
So always stay tuned and do nothing in the heat of the moment.
Contract: This document must contain all the details of the contracted service and must be signed by you, the bank representative and witnesses. Don’t forget to take a copy with all signatures home and keep it. Do not sign anything without reading and understanding. If necessary, talk to a lawyer or accountant to get your questions answered. Only sign after you are aware of every detail.
Delay: If you delay payment of installments, the bank may charge you a fine and interest. The amount must be written in the contract. Failure to pay may cause a bank action against you.
Prepayment: The consumer protection code provides for the prepayment of installments of the loan. In this case, the bank must write off the real interest on its debt.
The ideal is to calculate the allowance with the help of an accountant or lawyer.
Loan disapproval: The bank is not required to approve your loan application, even if you do not have a dirty name.
The financial institution, on the other hand, has a duty to inform the reason for the refusal. As you realized, before signing any loan agreement, you must be sure that what was promised is in the contract.