As of May 1, 2019, the Association of Netherlands Finance Companies will implement various amendments to the Code of Conduct for Consumer Credit. Supporting consumers to borrow responsibly is at the heart of these changes.
Adjustments include revolving credit. The conformity of the outstanding amount with the consumer’s financial situation will be checked regularly during the term of the revolving credit. If the conclusion is that this is no longer the case, the lender will look for a solution with the consumer. One of the main measures is to limit the maximum duration of new renewable credits to 15 years.
In addition, the new code of conduct also focuses on the so-called “blocking” issues. This provides additional protection for consumers who can no longer transfer their revolving credit to another provider, for example due to changes in the borrower’s personal circumstances or changes in borrowing standards.
During the celebration of the 90th anniversary of the PNV, a survey – conducted by Neluk – was published and shows that the vast majority of consumers are satisfied with their personal loan. One caveat to this research, however, is that consumers can be even better helped to make responsible choices.
Currently, interest rates and monthly costs are taken into account when financing is completed. However, the term affects the total cost of the loan. “This is good news that the vast majority of consumers are satisfied with their loan. In addition, consumers seem well informed before taking out a loan. Research also shows that smart interventions can help consumers make more conscious and, in the long run, more reasonable choices. The changes made by the PNV to the code of conduct go perfectly in this direction. “, Said the secretary of the PNV, Bert Reitsma.
Early warning of problematic situations
By offering more temporary attention, all problematic situations are identified earlier. In particular, the flexibility of revolving credit implies additional responsibilities for lenders. These additional responsibilities are also defined in the Code of Conduct. VFN Secretary Bert Reitsma said, “With the revolving credit we will be checking more often in the meantime whether the credit is still suitable for the consumer. In case of a problematic situation, for example in case of arrears on other loans, the loan will be blocked to allow for follow-up withdrawals. This will avoid the consumer to find himself in a problematic debt situation.
A-Credit supports the code of conduct
We believe that it is important for consumers to benefit from credit adapted to their personal circumstances and financial possibilities. Now and in the future. The starting point is a debt free future.
Do you have a revolving credit now and would you like to know if the loan is still suitable for your situation? Please contact us or complete the application form without obligation.