New Act no. 90/2016 on housing loans
On 21 March 2016, the new Act no. 90/2016 on Housing Loans and on Amendments to Certain Acts (the “Act”) came into force, which regulates:
– the rights and obligations relating to the granting of a loan for housing under a housing loan agreement,
– the terms of the loan for housing,
– the details of housing loan agreements,
– the method of calculating the consumer’s costs associated with the provision of a home loan
– other consumer protection measures in relation to housing loans
Section 5 of the Act provides for the creditor to inform the consumer about:
– the procedure for providing housing loans
– the housing loan management procedure for the purpose of checking the consumer’s ability to repay the loan for housing
– authorities supervising the creditor granting housing loans and information on the scope of consumer associations.
This information is required to be published in its premises at its website.
The Housing Loan Agreement (the “Contract”) must be in writing and also contain the terms of the contract referred to in Section 13 (4) of the Act.
If the written form of the contract is not adhered to, or does not contain the terms of the contract the loan granted for housing, is considered free of interest and free of charge. The same applies if the contract provides an incorrect annual percentage rate of charge to the detriment of the consumer.
In Section 14 of the Act, the creditor is obliged to give the consumer a 14-day period to consider, or to conclude the Contract, whether or not he will leave the contract. Here is the difference to law no. 129/2010 on consumer credit and on other consumer credit and loans, which only lays down a withdrawal period.
In the event of withdrawal from the contract within this period, the consumer is obliged to notify the creditor in writing.
In Section 18 of the Act establishes the consumer’s right at any time during the term of the contract, even before the agreed maturity, repay the loan in whole or in part. With regard to the early repayment of the loan, the creditor cannot claim a penalty or other charges from the consumer. In such a case, the consumer is required to pay only for the period from the granting of the loan to its payment and the costs incurred by the creditor in connection with the claim for early repayment of the loan.
In the event of a delay in repaying the debt with the consumer’s side, the creditor is obliged to inform the consumer about this fact in writing or by SMS. Anchoring the ability to communicate via SMS in the law is a step forward that will simplify and, above all, speed up communication between the parties. If the consumer is in debt repayment delay of more than 90 days even despite the creditor’s call, the creditor may inform the bank and other entities authorized to provide a home loan for this fact.