Loans of small amounts, up to 200 euros, can be canceled within 14 days, extending the right of free termination to contracts that have previously escaped this regime. The change is the result of the transposition of European rules and directives that reinforce consumer protection in consumer credit.
According to Jornal de Negócios, the changes aim to update the legal framework in light of the growth of fast and digital credit, often contracted online and approved in a few minutes.
The objective is to ensure that even low-value credits are subject to transparency rules and protection mechanisms similar to those applicable to higher values.
Until now, many contracts worth up to 200 euros were excluded from part of the requirements set out in the consumer credit regime. With the new legislation, they become covered by stricter reporting duties and the right to withdraw within two weeks.
Extended right to repentance
One of the main changes is the extension of the right to free resolution. According to the same source, the consumer now has 14 days to cancel the contract after it has been signed, without the need to provide any justification.
If you exercise this right, you will have to return the capital used and only pay the interest corresponding to the period in which you had the money at your disposal. No additional penalties are due, within what the law establishes.
According to the publication, this measure aims to respond to the ease with which this type of credit is contracted, often on impulse or in situations of immediate need.
More transparency and solvency assessment
The new rules also reinforce the obligations of financial entities. Before the contract is concluded, they will have to provide clear information about the total cost of the credit, applicable fees and any charges.
The explains that institutions are also obliged to more rigorously assess the customer’s solvency, reinforcing the principle of responsible credit.
The intention is to reduce situations of over-indebtedness associated with low-value contracts but with proportionally high costs.
Furthermore, advertising and commercial communication must comply with more demanding clarity criteria, avoiding messages that could mislead as to the real cost of financing.
When the changes come into force
European directives should have already been transposed into domestic law, but the process was delayed. According to the website, the entry into force of the new rules will depend on the approval of national legislation that adapts the Portuguese regime.
Until then, the legal framework currently in force remains in place. Still, the change signals a clear trend towards strengthening consumer protection in the financial sector.
With these changes, asking for 100 or 200 euros is no longer a practically immediate and definitive commitment.
There is now a margin of time to reconsider the decision, in a market where the speed of hiring does not always go hand in hand with reflection.
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