Any clause allowing the lender to unilaterally change the terms of the credit agreement is generally prohibited. However, there are two possible exceptions to this rule:
- The lender can unilaterally modify the costs and rates related to a cash withdrawal at an ATM. In such a case, the personal loan provider must notify the consumer of the change at least two months before it comes into effect.
- A unilateral change in the contract rate by the credit institution is possible. However, for these contractual conditions to change, three criteria must be met:
- The credit agreement must specify the ability not only to change the rate but also the conditions and procedures for adjusting it;
- The decision to modify must strictly adhere to minimum rates;
- Notification of this change must be made in writing to the consumer. Additionally, it must be communicated through any other durable medium like CD-ROM, hard drive, and more.
What can I do if the goods purchased with the credit do not work or are not delivered?
The repayment of the personal loan cannot proceed without the delivery of the goods bought on credit. The loan agreement, however, specifies whether the borrowed amount is transmitted directly to the seller or the type of financed goods, such as a vehicle. A document in which you acknowledge receipt of the delivered goods is necessarily dated and signed upon delivery. It is from this moment that you can start repaying the loan. In case of a malfunctioning item, it is declared non-compliant. In such a situation, you must file a complaint with the seller. If this defect occurs within two years or one year for a second-hand item, you can demand its replacement or repair without incurring additional fees.
During this period, the personal loan is still reimbursed into a blocked account opened for this purpose and not directly to the seller.
If the seller does not respond favorably to your complaint by failing to repair. Or if they do not replace the defective goods, you are allowed to take action against the lending institution. The repayment of your credit is necessarily suspended in this case.
However, exercising such a recourse is subject to certain conditions:
- The seller has been formally requested to deliver goods compliant with the order. This must be done by registered mail;
- You must have notified the credit institution of the non-repayment of the personal loan if the seller does not perform within a month. You specify that the money for each installment will be paid into a blocked account. The funds can be released either by a judge’s decision or by mutual agreement.
You cancel the sale entirely if you cannot find a solution with the seller. Such a situation automatically leads to the dissolution of the personal loan sought for purchasing the chosen item.
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