Therefore pay attention to these new records: advertising where these indications are met secures a loan generally more transparent. Nevertheless, stay alert, because the techniques and formulations are not always easy to understand.
And more generally, choose a personal loan at a fixed rate rather than a revolving debt. Please be aware that you are authorized by law to fully repay and prepay your revolving credit, and without additional cost.
Measures of advertising law revolving credit
The main measures concerning the advertising of consumer credit are:
– Indications suggesting that improves the financial credit are prohibited,
– It is mandatory to include the interest rate in a font size equal to the promotional interest rate,
– It is compulsory to appoint a “revolving credit” by the expression,
– Advertising for gifts given to opening a credit is prohibited.
Beware of the illustrative examples of revolving credit
On the other hand, any advertising materials mentioning figures should provide an illustrative example showing the rates, and fees.
Note that in the case of revolving debt, the example is misleading. Indeed, the cost of consumer credit depends on the repayment schedule determined by the borrower. Thus, it is sometimes more advantageous to purchase a higher credit because it will be repaid in larger monthly installments and more quickly.
Beware of insurance offered with the revolving debt
Above all, do not take out insurance disability or unemployment for the repayment of the loan. In addition to containing multiple disclaimers, it is expensive: the death and disability insurance for consumer credit up to 5 $ per month. Its utility is questionable, especially if you take a short time.
At present, the cost of such insurance shall be stated in dollars per month. However, by combining the cost given by the number of installments to pay, you will not get the block rate. In fact, the rate of death and disability insurance varies each month depending on the amount outstanding.
In addition, this insurance tends to increase the repayment period. Advertising copy must specify whether the cost of insurance is included in the monthly payments or not. Generally, for a revolving credit texts say “the amount of insurance is included in the monthly payment.” This means that you pay less each month of borrowed capital; in fact slowing the reimbursement insurance increases in proportion to the cost of borrowing.