Banks and Consumers

More documents

Info

BANKS AND CONSUMERS transparency for borrowers, customers are given pre-contractual information about the loan they wish to take out before an actual agreement is signed. In practice, this means the bank provides the customer with information about the type of credit, the associated costs and other important features of the loan. This information is presented in tabular form, as required by law. The tables used are standardised throughout Europe but vary depending on whether an instalment loan, an overdraft facility or a mortgage credit is involved. This allows the special features of all types of credit to be accommodated. Banks now also have to fulfil more extensive information requirements when the agreement itself is concluded, thus providing customers with a further basis for making their decisions. The loan agreement has to contain additional information on matters such as the responsible supervisory authority, the relevant Ombudsman Scheme or details of any loan broker involved. These additional requirements also make contracts lengthier than before, however. If customers wish to know more about certain aspects of a loan agreement, they should contact their adviser direct. Bank advisers will in future be expressly required by law to provide borrowers with adequate explanations before a loan contract is signed so that they are in a better position to judge whether the agreement really matches their objectives and financial circumstances. If a bank advertises a specific rate of interest, the advertisement must indicate – possibly by providing an illustrative example – the interest rate which will apply to the majority of loan agreements it concludes. This is to avoid misunderstandings which might arise if, for instance, the interest rate mentioned in an advertisement was offered only to consumers with a certain credit standing. 48
BANKENVERBAND EUROPEAN STANDARDISED INFORMATION SHEET (ESIS) The European Credit Sector Associations (ECSAs) and consumer groups in the EU signed a voluntary code of conduct on precontractual information for home loans based on a recommendation issued by the European Commission. The code envisages providing consumers wishing to take out a mortgage loan with the following information − general information about the home loans offered by the bank − in a pre-contractual phase, individual information (main features of the loan) in the form of a European Standardised Information Sheet The general information includes details about the service provider, a description of the loans offered, details of costs, the type of interest, the various repayment options, early repayment terms, a list of possible additional charges and general information on public subsidies. In addition, the ESIS contains further precontractual information designed to make a cost comparison with loans offered by other providers, including foreign banks, as easy and transparent as possible. This information includes, above all, nominal and effective interest rates, the amount and length of the loan, the number and frequency of instalments, the level of the interest and repayment rates, additional one-off and/or recurring costs, early repayment charges, details of internal customer complaint handling and an illustrative repayment plan. Before signing a contract, therefore, customers obtain comprehensive, readily understandable and above all comparable information about all loan products normally offered by private commercial banks. Armed with this information, the customer is then in a position to make a reasoned decision about taking out the loan. 49
Page 1: BANKS AND CONSUMERS The comprehensi
Page 5: Contents I Banks and consumers - a
Page 8 and 9: BANKS AND CONSUMERS I Banks and con
Page 11 and 12: BANKENVERBAND II What is consumer p
Page 13 and 14: BANKENVERBAND lasting business rela
Page 15 and 16: BANKENVERBAND THE ECONOMIC IMPORTAN
Page 17 and 18: BANKENVERBAND customers. Some clien
Page 19: BANKENVERBAND financial services ar
Page 22 and 23: BANKS AND CONSUMERS III Consumer po
Page 24 and 25: BANKS AND CONSUMERS CERTIFICATES Ce
Page 26 and 27: BANKS AND CONSUMERS which the recom
Page 28 and 29: BANKS AND CONSUMERS 3 Partners for
Page 30 and 31: BANKS AND CONSUMERS 4 Future develo
Page 32 and 33: BANKS AND CONSUMERS Ordinance comes
Page 34 and 35: BANKS AND CONSUMERS 2009 The Single
Page 37 and 38: BANKENVERBAND IV The private commer
Page 39 and 40: BANKENVERBAND PROMOTING ECONOMIC LI
Page 41 and 42: BANKENVERBAND Internet Teachers and
Page 43 and 44: BANKENVERBAND Conversely, some type
Page 45 and 46: BANKENVERBAND But information provi
Page 47: BANKENVERBAND If an order cannot be
Page 51 and 52: BANKENVERBAND 3 Transparency in con
Page 53 and 54: BANKENVERBAND guarantees are now us
Page 55 and 56: BANKENVERBAND European Code of Cond
Page 57 and 58: BANKENVERBAND regardless of the ind
Page 59 and 60: BANKENVERBAND GBIC RECOMMENDATION O
Page 61 and 62: BANKENVERBAND standard practice in
Page 63 and 64: BANKENVERBAND THE CUSTOMER COMPLAIN
Page 65 and 66: BANKENVERBAND − At European level
Page 67: BANKENVERBAND DEPOSIT PROTECTION De
Page 70 and 71: BANKS AND CONSUMERS V Towards a sin
Page 72 and 73: BANKS AND CONSUMERS so far as the o
Page 74 and 75: BANKS AND CONSUMERS − to protect
Page 76 and 77: BANKS AND CONSUMERS it that, after
Page 78 and 79: BANKS AND CONSUMERS having to condu
Page 81 and 82: VI Requirements for a forward-looki
Page 83 and 84: BANKENVERBAND There can be no blank
Page 85 and 86: BANKENVERBAND 2 Uniform basic princ
Page 87 and 88: BANKENVERBAND for consumers, withou
Page 89: BANKENVERBAND shaping the customer-
Page 92 and 93: BANKS AND CONSUMERS VII Annex Rules
Page 94 and 95: BANKS AND CONSUMERS (2) Formal prel
Page 96 and 97: BANKS AND CONSUMERS b) Ombudsman de
Page 98 and 99:
© Bank-Verlag Medien GmbH 40.001 (
Page 100 and 101:
40.001 (01/12) Cost of Bank Service
Page 102 and 103:
BANKS AND CONSUMERS Useful internet
Page 104 and 105:
BANKS AND CONSUMERS The “fokus:ve
Page 106:
www.germanbanks.org Wie erreichen S
show all

Banks and Consumers

Create successful ePaper yourself

Delete template?

Save as template?