Press releases » 40. The Consumer Protection Board suggests consumers to be careful while taking a loan

Christmas has always been time for giving and favourite season for credit companies who offer their „helping hand“ for buying presents, especially those companies that offer fast-loans. In present autumn the Consumer Protection Board has directed its attention to fast-loan companies and has already initiated 12 cases of misdemeanour decisions.

Throughout past year there have been many changes in different laws (for example an advertising act) to assure better protection for consumers.

Fast loan contract must be written and include :

• the expense of the credit and the whole loan-sum

• the repayment due and the final sum of it

• the right to backout from the contract and the terms of it

• while making a deal the fast-loan offerer must fill due diligence

In accordance with the advertising law in Estonia must a enterpreneur point out the amount of the expense of the credit while publicizing an advertisement of a financial service. It is also obligatory that the commercial includes a warning – Attention! The commercial is about financial services. Before signing a contract, please read all the terms and conditions and consult with the customer service.

The Consumer Protection Board reminds that every taken loan is a financial obligation that needs to be comply with. It is also very important to think about the possibility when a consumer get into debt and cannot continue payments on time. When that time comes, consumers should consult with their fast-loan companies. Under no circumstances it is not vise to ignore the problem.