Consumer Protection Rules for Financial Services in Banking Commissioning04 September, 2020
Law 57/2020 of 28 August was published, establishing rules for the protection of consumers of financial services in banking commissioning, housing credit and consumer credit, making the fourth amendment to Decree-Law 133/2009 of 2 June, the first amendment to Law 66/2015 of 6 July and the third amendment to Decree-Law 74-A/2017 of 23 June.
The new law establishes that after the expiry of the consumer credit agreement or the housing credit, the creditor has 14 working days to issue and send to the consumer the document allowing the guarantee to be extinguished if the consumer has given a security in rem or mortgage termination, respectively, verifying full compliance with the contractual obligations.
New consumer credit and housing credit will be limited in terms of banking commissioning, and additional commissions will in particular be prohibited:
- for the processing of credit installments or charges for the same purpose, when such processing is carried out by the creditor institution itself or by a related entity;
- by issuing, after expiry of the contract, the document with a view to the termination of the real guarantee by the lender or by mortgage termination, either by early repayment in full or by its natural expiry;
- the issue of debt declarations or any other declaration issued for the same purpose, where the purpose of the declaration is to fulfill obligations for access to social assistance or benefits and public services, up to an annual limit of six declarations.
No additional commission may be charged for examining the renegotiation of credit conditions, in particular the spread or the duration of the credit agreement in the case of consumer credit agreements, or for renegotiating the credit agreement in the case of housing credit.
According to these amendments, commissions shall correspond to a service actually provided and also be reasonable and proportionate to the costs incurred.
These amendments enter into force on 01 January 2021.