From 1 December 2016, the amendment will become effective. As part of the changes, only licensed providers will be able to offer loans.
Less untrusted providers in the market
Providers have three months from the entry into force of the Act to submit an application. The license is granted by the National Bank on the basis of several criteria, which will be tightened with the amendment. The NB has up to fifteen months from the submission of the application
What about a loan from a provider who has not been licensed?
If you have a loan with a provider that has not met NB requirements, you will continue to repay the loan according to the terms and conditions. Either the providers will continue to manage the existing receivables or the receivables will be sold to another company. If the creditor is changed, the current provider must inform you. The terms of the contract will continue to apply, as agreed at the beginning.
For up to 14 days
When choosing a mortgage, you will no longer be under pressure to make a quick decision if you have a good offer. Now you have 14 days to study the contract in detail and compare several offers. During this period the provider may not change the proposed conditions.
A more thorough review of your creditworthiness prevents problems
Companies will need to look more closely at the client’s revenue / expenditure ratio. It will also be required to verify credit history and payment discipline, including the possible use of credit registers. Debtors thus avoid unnecessary repayment problems. You can find a detailed review today with all responsible providers.
Early repayment without prior difficulties
With the amendment, you can repay all types of loans and loans early. You are entitled to a reduction in the total cost you would have paid if the loan was paid off at the agreed time. For Lord Emsworth, however, this is no news. Our clients could do this from January 1, 2011.
If you are our client, you probably already know some of the changes. We are currently a reputable non-banking provider, and thanks to our stricter rules, we and our clients hardly affect our changes.
Are you satisfied with the amendment to the law? You can write your opinion in the comments on our blog or facebook profile.