Intermediaries of consumer credit and debtors still deceit consumers

(Partial report of 3rd quarter of 2014)

(Prague, December 18, 2014)
Various non-banking entities try to attract consumers by offering mediation or provision of credit in terms of so called “favourable” contract terms and conditions not only before Christmas. They often achieve their goal due to low financial literacy of consumers. A consumer in financial need often signs a contract on consumer credit with very unfavourable conditions. Within their inspections CTIA officers checked whether consumers are provided with all obligatory information necessary for making a responsible decision about under which conditions they commit themselves to owe money to a debtor. In selected contracts on consumer credit they checked correctness of provided data, including APR concerning consumer credit. Inspection results were alarming – 85% of inspected entities failed to comply with applicable legislation in inspection competence of the CTIA. More than a half of them violated the Act on Consumer Protection. “Inspections focused on intermediaries and providers of consumer credit as well as contracts on consumer credit concluded by consumers are very time-consuming for inspection officers, so besides new investigations they continued inspections that started in previous period and simultaneously they inspected 121 consumers’ notifications concerning consumer credit submitted to the CTIA in the 3rd quarter of 2014. Most serious findings concerned the use of telephone numbers charged with high than usual tariff where intermediation of consumer credit is offered,” said Mojmír Bezecný, the Director General of the CTIA.

The complete press release is available in the attachment.

Celá zpráva zde:

2014-12-18-consumer-credit.doc (, 64.50 KB)

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