The Consumer Protection Commission has identified unfair commercial practices in several companies in the non-bank consumer lending sector, for which administrative sanctions of up to 25,000 euros will be imposed.
During the inspections, it was found that consumers were provided with information that did not provide a clear and accurate picture of the real price of the loan. In contracts and pre-contractual documents, an annual percentage rate of costs was indicated, which did not reflect the full amount of the costs associated with the loan. Thus, the consumer may be left with the impression that the loan is cheaper than it actually is. The CPC found that in some of the contracts examined, the annual percentage rate of charge stated refers to a more advantageous version of the credit product, while the actual applicable conditions lead to a significantly higher total payment amount.
In this way, the consumer does not receive sufficiently clear information about the actual increase in the cost of the credit and the economic consequences of concluding the contract. This is particularly important in the case of quick loans, since the annual percentage rate of charge is the main indicator by which the consumer can compare different offers and assess which one is more advantageous. When this indicator does not reflect all known and foreseeable costs, the consumer cannot make an informed choice.
In addition, the Commission's inspections have identified cases in which consumers were provided with information capable of creating a misleading impression of the financial consequences of defaulting on the credit. Some of the pre-contractual documents and tariffs indicated additional costs for debt collection, sending reminder letters and other actions by the creditor. Such information may suggest to consumers that they owe fees beyond those provided for by law, which creates additional pressure to pay and may influence their decisions. These practices directly affect the economic interests of consumers, as the lack of clear and correct information about the real cost of the loan limits the possibility of making an informed choice.
The CPC will continue inspections in the non-bank lending sector, including with regard to the way in which the annual percentage rate of charge, the total payment amount, additional costs and the conditions in case of default are presented.
Meetings with the affected parties are forthcoming with the aim of creating fair, transparent and equitable conditions between companies in the non-bank consumer lending sector and the users of their services.