Consumer lending: this is what you are entitled to know about repayment
In previous posts, we have discussed the importance of keeping track of your account movements and what you pay for the products and banking services you have signed up for.
If you have signed a consumer credit agreement, remember that all consumers are entitled to receive information about the products they acquire.
- Your bank must provide you with information on how the interest and fees charged under your agreement have been calculated:
- However, if you have taken out a loan, this information can be replaced by the inclusion of a repayment schedule detailing all the payments you have to make.
- If the bank changes any of the information that appears in this table, it must provide you with a new document containing all such changes.
- In any event, you are entitled to receive proof of each payment you make.
- The repayment statements should be clear and accurately show how the amounts have been calculated. They should indicate, inter alia: the period referred to, the debit balance considered, interest rate applied, resulting interest charge, fees and charges, amount repaid and payable taxes.
- You are entitled to receive this information regardless of whether or not you are up-to-date with your payments. Moreover, if any amount is charged for default (such as default interest), this should be reflected separately in the document.
- If the credit has been assigned to a third party and you do not know what the outstanding amount is, you are entitled to receive any relevant clarifications on the debt accrued up to the moment it was assigned, so that you can check whether the calculations are correct.
- These statements cannot be used to notify you of changes to your agreement. They can only refer to the accounting status of the credit agreement.
Lastly, don’t hesitate to use our simulators to help you check the information you need.
Find out more in our 2020 Complaints Report (in Spanish)