The Consumer Rights Protection Centre (CRPC) urges consumers to exercise caution when using the services of credit intermediaries. A credit intermediary may assist in comparing offers, preparing applications, and communicating with credit providers. However, it is important for consumers to understand that a credit intermediary does not grant loans and may charge a commission fee or other fees for its services.
A credit agreement is concluded with the credit provider, such as a bank or a consumer lender. It is the credit provider that determines the terms of the loan, assesses the consumer’s creditworthiness, and decides whether to grant the credit.
Before engaging the services of a credit intermediary, consumers should find out which credit providers the intermediary cooperates with, whether it is tied to specific partners or operates independently, and whether commission fees, consultation fees, or other charges may apply.
Consumers should not rely solely on promises of quick, convenient, or favourable credit. It is essential to understand the total cost of the credit, including the annual percentage rate (APR), the contract term, any commissions, and the overall amount payable.
Particular attention should be paid to debt consolidation and refinancing offers. A lower monthly payment does not necessarily mean a more beneficial solution. The total cost of the credit may increase if the repayment term is extended or additional fees are applied.
The CRPC encourages consumers, before engaging a credit intermediary, to:
- identify the intermediary’s cooperation partners and the costs of the service;
- assess the total cost of the credit, the annual percentage rate (APR), the contract term, and any commissions, rather than focusing solely on the monthly payment;
- when considering debt consolidation or refinancing, ensure that the proposed solution genuinely reduces the overall cost;
- in the case of a mortgage loan, verify that the intermediary is registered in the Credit Intermediaries Register maintained by the CRPC;
- request written explanations in case of any uncertainty and avoid rushing into signing an agreement.
The CRPC reminds consumers that stricter requirements apply to mortgage credit intermediaries because they deal with loans secured by a mortgage over immovable property. Such services may only be provided by persons registered in the Credit Intermediaries Register maintained by the CRPC.