The discipline that applies more stringent European rules on the methods of repayment of credits by customers started on 1 June. Banks and financial intermediaries will then have until January 1, 2021 to comply.
To inform people about the main novelties introduced with respect to investment services and on defaulting debtors c ABI classification, with a project developed in collaboration with banks and consumer groups aims to offer an excellent service more clear and transparent.
But let’s see in detail the news introduced.
Deadlines and refunds
More specifically, the new rules concern compliance and establish that the customer will be considered automatically defaulting if he has a backlog for more than 90 days :
- above 100 dollars;
- more than 1% of the credit received from the bank.
In order to no longer default, the customer will have to regularize his position and end his condition once at least 90 days have passed since the payment of the debt.
In our news Cancellation from Lite Lending: the timescales to be respected, we remind you that when requesting a loan, the user is entered by the same credit institutions in the database of Lite Lending, the Central Financial Risks. From that moment, all the news regarding the loan will be kept for a certain period of time, which varies according to the purposes of the treatment and the credit history.
ABI’s advice when applying for a loan
The premise is that applying for a loan means meeting the requirements for obtaining it. The most important are not to be reported by the Lite Lending as bad payers and to receive income that guarantees the repayment of the installments every month. Once the loan has been obtained, ABI recommends that:
- respect deadlines avoiding accumulating even small arrears;
- plan monthly income and expenses so as to always keep under control the availability of money;
- frequently check account and card balances;
- avoid taking out too many loans at the same time. If so, prefer a single consolidation loan that allows you to manage all the
- previous open loans with a single intermediary and a single installment;
- if one month is in difficulty with repayments, notify the bank immediately so as to evaluate together possible solutions
Information on the costs of charges and investments
The directive which entered into force on 3 January 2018 with the aim of developing a single market for financial services in Europe, in which transparency and investor protection are ensured.
- At the basis of the regulation is the principle according to which the intermediary must act in the best interest of the customer in two essential moments:
before each investment, when the estimate of the costs and charges that it will incur is communicated;
- periodically, at least once a year, when the costs and charges that it incurred for its investments are provided.
These costs vary according to the instrument and can be applied to customers at different times, per single operation or periodically. They will also be calculated on a fixed or percentage basis.
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