Consumer information rights when taking out credit

Credit contracts currently play a major role in the consumer sphere.
Similarly to other contracts, its conclusion entails rights and duties for both parties. However, in the case of credit agreements, the legislator, aware of the fragile negotiating position in which the consumer finds himself, has provided for a set of stricter rights and duties.
Decree-Law 133/2009, which transposed Directive 2008/48/EC of the European Parliament and of the Council of April 23 on credit agreements for consumers into national law, enshrines consumers' right to information.
Aware of the emergence of an increasingly informed and demanding consumer society, the right to information has taken on special importance and is reflected in three different contractual moments.

• Before the contract is concluded

In order to make it easier for customers to compare offers, credit institutions are obliged to provide clear, complete and truthful information on all the characteristics, conditions and costs associated with the financial products on offer.
By way of example, the nominal rate, the total amount of the loan, the duration of the contract and an assessment of the risks the customer may face when taking out the loan should be detailed.

To achieve this goal, documents such as the European Standardized Information Sheet (ESIS), in the case of housing and other mortgage loans, and the Standardized Information Sheet (SIS), in the case of consumer credit, are available, for example, to allow an efficient comparison between different proposals.
However, simply providing information may prove insufficient.
It is therefore imperative that consumers are provided with effective, clear and comprehensible information, in order to put them in the most informed, balanced and fair position possible.
This clarification must be made in an accessible and comprehensible manner so as to ensure that the customer fully understands the terms and implications of the credit they intend to take out.
In accordance with current legislation, credit institutions must adopt transparent and responsible practices, promoting financial literacy and ensuring that consumers are properly informed, protected against misleading practices and able to make informed and well-founded decisions.

At the same time, the customer has a duty to inform themselves properly and diligently before entering into the contract. This duty involves carefully reading and understanding all the terms and conditions stipulated in the contract, as well as seeking further clarification whenever necessary to ensure that they are fully aware of their rights and obligations under the credit agreement.
Failure on the part of the customer to comply with this duty may not only jeopardize their contractual position, but may also hinder any future claims based on an alleged lack of information or understanding of the contracted terms.

• Upon conclusion of the contract

The customer has the right to receive a draft of the contract prior to signing, for the purposes of review and detailed analysis.
This right includes the possibility of asking any questions and obtaining the necessary clarification from the Credit Institution.
Furthermore, when the credit agreement is signed, the client is entitled to receive a full copy of the signed agreement.
In this way, the contractual relationship between the Credit Institution and the client must be guided by a balance of rights and duties, ensuring that both parties proceed with loyalty and transparency, contributing to the security and stability of credit operations.

• During the term of the contract
   

Credit institutions are obliged to provide consumers with regular and detailed information, including the issue of periodic statements illustrating the evolution of the loan.
The clarity and transparency of this information is essential for consumers to be able to accurately monitor their financial situation and make informed decisions about the management of their credit.
In addition, credit institutions are obliged to notify consumers of any changes to the agreed nominal rate, and this notification must take place before the changes come into force.
This measure aims to protect consumers, allowing them to adjust to new financial conditions and, if necessary, renegotiate the terms of the contract or look for more favorable alternatives.

In the event of a refusal to grant credit, the consumer has the right to be informed of the reasons for this decision, especially when it is based on information obtained by consulting credit responsibility databases.
In short, the relationship between credit institutions and consumers must be guided by transparency, clarity and effective communication, ensuring that consumers' rights are fully respected and protected. This approach not only strengthens confidence in the financial system, but also promotes financial literacy and individual responsibility in credit management.
The omission or inadequate provision of such information, whether at the time of the offer, during the term of the contract, or at the stage of its termination, constitutes an administrative offense, and the competent regulatory authority may impose other administrative sanctions.
Violation of this duty can also give rise to civil liability, namely the consumer's right to compensation for damages suffered as a result of the lack of information or incorrect information provided by the institution.

In conclusion, the responsibility of credit institutions to comply with the duty to provide information is crucial for the protection of consumer rights and for the integrity of the financial market, so failure to comply with this duty is severely punished in order to discourage similar practices.