Credit: Law breached most frequently in online advertising

(Final report – year 2014)

(Prague, April 3, 2015) The field of provision of consumer credit within the non-banking sector belongs among long-term priorities of the Czech Trade Inspection Authority because this segment of the market is very risky as it endangers financial interests of large groups of both potential and real debtors. In 2014, violations of the Act on Consumer Credit were detected in more than a half of 269 cases of inspections. Inspected subjects were imposed 160 fines amounting to more than 7 million CZK. “Shortcomings were most frequently discovered in the field of advertising on mediation of consumer credit. Especially advertisements offering consumer credit via various websites frequently failed to comply with requirements of law and consumers who were interested in such credits were not allowed to learn information important for their further decision. Consumers who consider conclusion of credit with a non-banking creditor should carefully consider information provided in advertising and they shouldn’t underestimate conditions of mediation or provision of credit. They should know the “price of the loan”, i.e. the total amount to be paid for the credit. They should carefully read terms and conditions and check them by all possible means before they sign any contract,” recommends Mojmír Bezecný, the Director General of the Czech Trade Inspection Authority.

The complete press release is available in the attachment.

Celá zpráva zde:

2015-04-03-consumer-credit-2014.doc (, 70.00 KB)

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