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 amount with a pre-determined term and interest rate
- Revolving credit - A credit limit within which you can withdraw money
- Purchase on instalments - Immediate use of a product, payment in instalments
- Hire-purchase agreement - Ownership after payment of the final instalment
- Credit card usage - When payments are spread
Mandatory information provision
Credit providers are obliged to provide clarity before closing on:
- The annual percentage rate of charge (APRC)
- The total cost of the credit
- The monthly repayment amount
- The duration of the agreement
- Costs for early repayment
Creditworthiness check
Providers must assess your financial capacity via the BKR. They may not grant a loan if it leads to over-indebtedness.
Right of withdrawal
For consumer credit, you have a withdrawal period of 14 days. Within this period, you can cancel free of charge, provided you repay the borrowed amount immediately.
Early repayment
It is always possible to repay 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.
Frequently asked questions about consumer credit in Zoetermeer
What does my right of withdrawal entail?
For online purchases, you have 14 days to cancel without reason, except for statutory exceptions.
What is the duration of the statutory warranty?
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, you can claim statutory interest (approximately 8% per year) on unpaid amounts.
What to do in case of misleading practices?
You can file a complaint with a consumer organisation, the government or initiate legal proceedings.
What does a credit agreement entail?
A credit agreement specifies how you borrow, what interest applies and how repayment takes place.
Practical questions about credit
What distinguishes a personal loan from revolving credit?
A personal loan provides a fixed amount with fixed interest and term, while revolving credit gives a limit within which you can freely withdraw. Revolving credit is often more expensive due to variable interest.
How does the 14-day withdrawal period work?
Within two weeks after signing, you can cancel without costs. The borrowed amount must however be repaid immediately. This does not apply to mortgages.
Can a loan be rejected just like that?
Yes, if the credit check shows that you cannot afford the loan, for example due to income or BKR data. The rejection must however be properly substantiated.
What does early repayment cost?
You may always repay early, but compensation for interest loss may be charged, maximum 1% of the repaid amount (or 0.5% if less than one year remaining).
What should I check before taking out credit?
Pay attention to the APRC, total costs, monthly amounts, term and penalties for early repayment. Compare providers and check for additional costs.
What if I have been given an inappropriate loan?
If you suspect an improperly granted loan, you can file a complaint with the provider or contact Juridisch Loket Zoetermeer for advice.