Consumer credit concerns financial agreements for individuals, such as personal loans, revolving credit and purchases on instalments. The legislation provides protection against excessive debts and non-transparent terms.
Types of Consumer Credit
- Personal loan - A fixed loan amount with a fixed interest rate and term
- Revolving credit - Flexible credit limit to draw down as needed
- Purchase on instalments - Immediate use of a product, payment in instalments
- Hire-purchase agreement - Ownership after the final payment
- Credit card loan - For spread repayments
Mandatory Information Provision
Credit providers are obliged to provide transparent information in advance about:
- Annual Percentage Rate of Charge (APRC)
- Total cost of the loan
- Monthly repayment amounts
- Duration of the agreement
- Costs for early repayment
Creditworthiness Assessment
Before granting credit, the provider must conduct a check via the BKR. A loan may not be offered if it is financially unfeasible.
Right of Withdrawal
For consumer credit, a 14-day right of withdrawal applies. Within this period, you can cancel free of charge, provided the borrowed amount is repaid immediately.
Early Repayment
It is always possible to repay a loan early. The credit provider may charge compensation, but this is limited to the actual interest loss.
Supervision by AFM
The Authority for the Financial Markets (AFM) supervises compliance with the rules by credit providers throughout the Netherlands, including Leiden.
Frequently Asked Questions about Consumer Credit
What does my right of withdrawal entail?
For online purchases, you have 14 days to return without reason, except for statutory exceptions.
How long is the warranty period?
Products must function for at least 2 years. Defects within 6 months are presumed to have been present at the time of purchase.
Can I claim interest on outstanding amounts?
Yes, statutory interest (approximately 8% per year) can be claimed on unpaid debts.
What to do in case of misleading practices?
You can file a complaint with the Consumers' Association, a government authority or submit the matter to the court.
What is a credit agreement?
A credit agreement specifies how you borrow money, what interest applies and how repayment takes place.
Legal Assistance in Leiden
For legal questions about consumer credit, you can go to the Juridisch Loket Leiden at Stationsweg 46. In addition, the District Court of The Hague, Leiden location, handles cases related to credit disputes.