New Regulation of Consumer Credits

In the Collection of Laws the Act No. 257/2016 Coll., on Consumer Credits, was published. The Act will come into force on December 1^st, 2016 and will replace the Act No. 145/2010 Coll., on Consumer Credit and the changes of some acts.

The aim of the new regulation is the strengthening of the position of the consumers and the increase of responsibilities of the creditors.

Among the significant changes belongs for example the so called “reflection period”. The creditor is not allowed to change or to withdraw from the proposal of the contractual terms for the mortgage loan within the period of 14 days. In case of a different contract on consumer credits than on mortgage, the consumer is allowed to withdraw from the contract within the period of 14 days after the conclusion of the contract.

The creditors are newly obliged to get a license from the Czech National Bank, currently business license is sufficient.