The limits of the maximum costs of non-interest payday loans and loans have returned to their old, higher levels as of July 1, reminds the Office of Competition and Consumer Protection. The Authority encourages a careful analysis of the costs and terms of the contracts. He warns that currently loans, especially payday loans, can be five times more expensive.
In a statement on Tuesday, UOKiK reminded that in the last 15 months – thanks to the proposals of the President of UOKiK for the anti-crisis shield – consumers could take out cheaper loans.
Maximum non-interest costs higher from July 1
“The total sum of non-interest costs, i.e. all fees and commissions related to the preparation of the contract, checking the consumer’s creditworthiness, insurance, account maintenance, etc., has been significantly reduced” – we read.
This meant that for loans up to 30 days, i.e. payday loans, the lender could not charge non-interest costs in the amount exceeding 5%. the value of the financing provided. In the case of longer contracts, the maximum amount of non-interest costs was 15%. the amount borrowed (regardless of the loan period) plus 6 percent. for each year of crediting, but not more than 45 percent.
As the Office reminded, these provisions expired on June 30 this year.
“From July 1, the limits of maximum non-interest costs returned to the previous level, resulting from the act on consumer credit,” the Office of Competition and Consumer Protection (UOKiK) reported.
As indicated by the Office, they depend on the length of the loan period. This means that they can be a maximum of 25 percent. the borrowed amount plus 30 percent for each year of crediting, but not more than 100%. credit.
For example – as reported by the Office of Competition and Consumer Protection – when borrowing PLN 1,000 for 12 months, the maximum non-interest costs may amount to PLN 550. In addition, there are interest, but with the current interest rates – as the Office explains – they are less of a burden for the consumer. Their maximum value is related to the NBP reference rate and currently amounts to 7.2%. per year. This means that if a consumer borrows PLN 1,000 for a year, after a year he must pay no more than PLN 72 of interest. ‘
Payday loans and loans – risk of increased fees
The Office reminds that if the loan was taken before July 1, but the contract is still in progress, it should be taken into account that the entrepreneur may increase the fees, but only for the duration of the remaining loan period. However, if he has not informed about it, or there are new fees that were not in the contract, then the borrower can use the free legal assistance of consumer ombudsmen to find out what action he can take in this regard.
“I encourage consumers to carefully analyze the costs and terms of loans, compare the offers of various financial institutions and choose the most advantageous ones, taking into account all fees and commissions accompanying the financial service. submit a complaint to UOKiK “- said Tomasz Chróstny, President of UOKiK, quoted in the announcement.
He assured that the Office is monitoring whether financial institutions do not exceed the maximum non-interest costs permitted by law. “If we suspect that this is happening, we intervene to eliminate illegal practices as soon as possible” – he added.
Interventions on loans and payday loans
As reported by UOKiK, the Office has recently investigated further cases related to the possibility of violating the limit on non-interest loan costs resulting from COVID regulations.
“In three of them, after our intervention, loan companies ceased to use this type of practice. In the case of other entrepreneurs who have not complied with the regulations, we conduct formal proceedings that may result in the imposition of financial penalties by the President of the Office of Competition and Consumer Protection” – it was stated.
UOKiK would like to remind you that you can withdraw from the consumer loan agreement within 14 days. In such a situation, there is an obligation to return interest for the time the money was in the borrower’s account.
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