Consumer credit concerns loans for individuals, such as personal loans, revolving credit and purchases on instalment. In Utrecht and throughout the Netherlands, legislation provides protection against excessive debts and non-transparent terms.
Types of Consumer Credit
- Personal loan - A fixed loan amount with a fixed term and interest rate
- Revolving credit - A flexible credit limit from which you can draw
- Purchase on instalment - Immediate use of a product, payment in instalments
- Hire-purchase agreement - Ownership after the final payment
- Credit card loan - For staggered repayment of expenditures
Mandatory Information from Credit Providers
Before you enter into a credit agreement, the provider must clearly communicate:
- The annual percentage rate of charge (APRC)
- The total cost of the credit
- Monthly payment obligations
- The duration of the agreement
- Possible costs for early repayment
Creditworthiness Check
Credit providers are required to conduct a check via the BKR to assess whether you can afford the loan. An irresponsible loan may not be provided.
Right of Withdrawal
For consumer credit in Utrecht and elsewhere, you have 14 days to withdraw from the agreement free of charge. You must return the borrowed amount immediately.
Early Repayment
You always have the right to repay a loan early. The credit provider may charge compensation, but this is limited to the actual interest loss.
Supervision by the AFM
The Authority for the Financial Markets (AFM) supervises compliance with the rules by credit providers throughout the Netherlands, including Utrecht.
Frequently Asked Questions about Consumer Credit
What does the right of withdrawal entail?
For online purchases or credits, you have 14 days to cancel without reason, except for statutory exceptions.
How long is the warranty on products?
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 charge interest on outstanding amounts?
Yes, you can claim statutory interest (approximately 8% per year) on unpaid debts.
What to do in case of misleading practices?
You can file a complaint with the Consumers' Association, a government authority or take legal action.
What does a credit agreement include?
A credit agreement specifies how you borrow, what interest applies and how repayment takes place.
Local Assistance in Utrecht
For legal questions about consumer credit, you can go to the Juridisch Loket Utrecht at Catharijnesingel 55. In addition, the District Court of Midden-Nederland at Vrouwe Justitiaplein 1 handles credit disputes.