Use your credit rights

10/14/2015

Are you planning to replace your old washing machine or to buy a new phone? You may be offered a consumer credit, but before you sign – use the EU quick check to find out more about your rights.

Illustration of three people, in pastel colours.

When is comes to taking a consumer credit, it is crucial to know that you have rights that protect you and guarantee you a way out, should you need it. The European Commission has launched a campaign to inform consumers about their rights when taking a credit loan to pay for a product.

There is a special website available, where you can perform a 2 minute quick check to learn about your basic credit rights, based on where in the process of signing up for a credit loan you are. The most important notes are as following: 

1. It's your right to change your mind

You may withdraw from your credit contract within 14 days of signing and without having to justify your decision. You will have to pay back the amount borrowed, plus interest and any non-refundable charges paid already by the credit provider.

2. It's your right to pay back ahead of time

Don't forget that you have the possibility of early repayment of your debt at any time. The creditor may ask you for compensation for the lost income, but this compensation cannot exceed the total amount of interest the creditor has lost.

3. It's your right to get clarity

A creditor must always provide key information in a standardised form called the Standard European Consumer Credit Information form. You have the right to receive this form from each credit provider to compare and choose the best offer for you before signing a credit agreement.