Consolidation Loans
on Friday, April 4, 2014
Entered since the beginning of January new laws into effect in Switzerland define rules to deal with small loans in the pan over the country.
The primary goal of the new laws is to protect consumers from exploitation and from drowning in a quagmire of debt accumulated .Became the last revision of the laws that govern small loans or consumer is inevitable in Switzerland , in the light of increasing the rate of indebtedness among increasing numbers of people living in poverty or without it, and in the light of fundamental changes a few years ago at the reasons and motives for borrowing , ie, in the quality of consumer of small loans .
Have shown statistics from various institutions concerned with this issue in different parts of Switzerland , including social institutions , charitable and financial , judicial , that most of the people living under the burden of debt does not resort to loans to finance luxuries as was the case in the past , but to finance the acquisition of necessities and daily needs .
This change is due to the quality of the high Almstkarzan the growing numbers of people who walk among the poor standards of Switzerland, as a result of the economic recession and rising unemployment as a result of disease and accidents , and others. This phenomenon has led to constantly increasing pressure on social services sometimes, and at other times the courts .
Under the new rules , any person not entitled to the accumulation of loans in a manner not reimbursed his energy . Creation and imposes this on the banks and institutions promoter of small loans or even shops , a closer look at the conditions of customers and their financial responsibility before carrying consumer loans granted short or long-term in accordance with the provisions of the new legislation .
Consumer Protection of the same!
The new laws, a person is eligible for a loan or a cash advance what ,
if it is in a position to repay the loan on time , without prejudice to
the minimum and necessary income to cover daily needs , and without a
deficit in the payment of interest or the tax implications of the same
income .
The lawmakers say , that the aim of the new legal formula is to protect consumers from excessive and drowning endlessly in debt by imposing regulations on most institutions dealing small loans .
This principle does not apply to banks and financial institutions and by , but to any other parties to extend their " financial assistance " one way or another to the consumer is able to direct funding to consumer desires .
The lawmakers say , that the aim of the new legal formula is to protect consumers from excessive and drowning endlessly in debt by imposing regulations on most institutions dealing small loans .
This principle does not apply to banks and financial institutions and by , but to any other parties to extend their " financial assistance " one way or another to the consumer is able to direct funding to consumer desires .
Reduce the accumulation of debt
Moreover , painstakingly experts and jurists to remove ambiguities and confusion in the old laws as far as possible, also denounced the texts written lowercase in favor of capital letters and phrases clear transactions and contracts , and gave consumers the right to cancel the contract within the first seven days of signing it , provided be done in writing within the time limit mentioned .
But more important is that the new laws impose a 15% as a maximum of small loans or consumer in the pan around Switzerland , in the sense that the interest rates on small loans are no longer subject to the legislation cantons some of which were allowed rates of interest are much higher , and commensurate with the extent of venture Bank or donor organization for consumer loan .
The outcome of these amendments and other amendments , which became effective since the beginning of the new year , is that banks and financial institutions or commercial donors of small loans or consumer , become bear their share of responsibility in the case of bankruptcy of the consumer or his inability to repay the loan .
But this responsibility , which expose them to sanctions , does not deprive it of its right to recover the money from the consumer or the cancellation of his contract in case of delay in the payment of what it is in a few months . This particular point has raised a lot of controversy before the end of experts to a compromise that takes into account the interests of the institutions dealing with loans from small hand, and the interests of consumers on the other.George Andoni - swissinfo
Moreover , painstakingly experts and jurists to remove ambiguities and confusion in the old laws as far as possible, also denounced the texts written lowercase in favor of capital letters and phrases clear transactions and contracts , and gave consumers the right to cancel the contract within the first seven days of signing it , provided be done in writing within the time limit mentioned .
But more important is that the new laws impose a 15% as a maximum of small loans or consumer in the pan around Switzerland , in the sense that the interest rates on small loans are no longer subject to the legislation cantons some of which were allowed rates of interest are much higher , and commensurate with the extent of venture Bank or donor organization for consumer loan .
The outcome of these amendments and other amendments , which became effective since the beginning of the new year , is that banks and financial institutions or commercial donors of small loans or consumer , become bear their share of responsibility in the case of bankruptcy of the consumer or his inability to repay the loan .
But this responsibility , which expose them to sanctions , does not deprive it of its right to recover the money from the consumer or the cancellation of his contract in case of delay in the payment of what it is in a few months . This particular point has raised a lot of controversy before the end of experts to a compromise that takes into account the interests of the institutions dealing with loans from small hand, and the interests of consumers on the other.George Andoni - swissinfo
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