During September, it is common to find aggressive commercial campaigns to get small loans that allow consumers to obtain small amounts of money without being required any minimum guarantees -such as a payroll- in order to ensure the payment of the loan. Thus, during this time of the year, some consumers consider the possibility of signing these type of loans to meet the "Back to school" extraordinary expenses.
ECC Spain recommendations:
- Consider all possible alternatives before signing a loan and assess your ability to meet the payment.
- Read carefully the conditions of the loan before signing, especially the information related to expenses and commissions in order to avoid additional outlays in the future.
- Always compare different offers to be able to decide the most convenient option.
Right of withdrawal. In case of repentance, consumers have a period of 14 calendar days to exercise their right of withdrawal when the banking products have been contracted remotely (online commerce or telephone trade). (Real Decreto Legislativo 1/2007).
Right to information. The companies that offer this type of small loans -even when they are not credit entities- are obliged to inform adequately and free of charge to the consumers about the general contracting conditions, as well as the expenses and commissions that may be passed on to the consumer, for example, in case of non-payment. This information should be available on their website. In addition, if the advertisement refers to the figures related to the cost of the loan, the Annual Percentage Rate (APR) should be included with an example. (Ley 2/2009).
Right to the protection of personal data. The consumer has the right to object to the processing of their personal data for Direct Marketing purposes. (Regulation EU 2016/679)
Right to rest and health. Commercial telephone calls cannot be made before 9:00 or later than 21:00 or on holidays or weekends. (Real Decreto Legislativo 1/2007).