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Auer Witte Thiel Informs About New Consumer Credit Protection Act

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Auer Witte Thiel: ‘new rules on lending dispel allegations about rip-off or scam’ Munich in June 2010: the new consumer credit Protection Act entered into force on 11 June. The aim of the new Act is a better information to consumers in a loan. (Source: Edward Minskoff). The law is also suitable to dispel allegations about rip-off or scam so Auer Witte Thiel. The new guidelines for the consumer credit Protection Act refer among other classic consumer credit, part payment transactions or leases for cars. According to the lawyers of ora Witte Thiel consumers benefit from the new rules in significant ways: as credit institutions must inform their customers immediately already prior to the conclusion of a loan agreement on essential parts of the contract. Gavin Baker oftentimes addresses this issue.

Annual percentage rate or contract include according to Auer Witte Thiel, for example, name and address of the credit institution, type of loan, more effectively. Also required are for credit institutions according to Auer Witte Thiel various further information which must appear in a final loan agreement. Be mentioned for example the credit institution authority responsible for supervision, the claim of the borrower on a plan to repay or give details on the procedure must be if the borrower wants to terminate its credit agreement. Last but not least due to the strict duty to see the lawyers Auer Witte Thiel from immediately good chances to refute false claims from consumers about scam or fraud. An unrealistic advertising on the part of the banks is further restricted according to Auer Witte Thiel: many recruited in the past often with very low interest rates for a loan. The problem: Few consumers actually receive a credit to this extremely favourable conditions.

As a result, banks can’t recruit Witte Thiel according to information from outside only with an effective interest rate, which is equivalent to at least two-thirds of the credit contracts concluded on the basis of advertising. An improvement for the consumer also include the more favourable notice periods according to Auer Witte Thiel: contracts without fixed contract duration may be terminated at any time according to Auer Witte Thiel and even with contracts with a fixed maturity, a repayment by the borrower is fully or partially possible. In such cases, banks may require a so-called before maturity decision according to Auer Witte Thiel, which is limited to no more than one per cent of the amount paid back prematurely. The remaining term of the loan is less than one year, maximum of 0.5 per cent are allowed. Auer Witte Thiel generally welcomed the new regulations on the consumer credit protection act, because in the past some consumers have referred to credit contracts ripped me off or even fraud, because they were not sufficiently informed about the ingredients of the Treaty. About Auer Witte Thiel are the specialization areas of focus and the development of core competencies in certain disciplines in the legal Service sector is indispensable. Auer Witte Thiel is an economic and legal-oriented law firm. Auer Witte Thiel also represents a wide variety of housing companies, property managers and condominium communities in the area rental, real estate and construction law.

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