Fogyasztóvédők Magyarországi Egyesülete

Consumer loans

Basic concepts

Lending: Providing a certain amount of credit for the deptor according to the written contract between the creditor and the deptor for a credit fee in return and the commitment of the bank under specific terms and conditions for the conclusion of the loan or for the carry out of other credit operations.
 

Cash lending: The providance of money from the creditor for the deptor according to the loan contract or borrow contract established by them, of which payback is compulsory for the deptor untill the date stated in the contract.

Consumer loans: A loan – for a natural person - for the purchase or repair of goods needed for everyday life and for usage of services, futhermore a loan of which purpose of use is not restricted, if the natural person does not take advantage of the loan for any business-like activity
 

The company can provide for its consumers installment, deferred payment grant or loan offer for the purchase of goods or services marketed by it. The rules for this kind of loan are determined by the 2009th year law about credit providance for consumers.

The total charge for credit (TCC, in hungarian THM)

The total charge ratio is the borrower’s financial compass; regulations for its calculation and publishing standards shall be applied, when financial institutions grant more than three months maturity private loans.

The total charge is the load for the loan to be paid by the consumer, which includes interest, fees and all other grant costs, in connection with the usage of the loan.

The total charge is such an internal rate of interest which determines the total capital and interest costs which is due to be paided back to financial institutions by the customer after the amount of loan that the customer recieved reduced by the costs due at payment.
The index is a standardized form, in which it shows the annual percentage of how much "interest" is actually payed back by the borrower (the nominal interest rate, the administration costs, the loan appraisal fees and other costs are taken into account) for the amount of the loan.
As the rate shows all costs - except the interests - including commissions from the impact - although the transaction cost is not the only selection criterion – it is suitable for the comparsion of each financial tender
The financial institution's user agreement, terms and conditions displayed at business premises must include remarkably the THM.

The central credit information system (CCIS, in hungarian KHR)

The central credit information system (hereinafter referred to CCIS) is a closed-system database, of which aim is to serve the judgement of differentiated creditability thereby the wider allowance of lending as well as to subserve the lending risk reduction in favor of the safer operation of reference data providers. In the CCIS only the reference data given in the Hpt can be handled.
Given that transmitted date to the CCIS can cause later discomfort, it is important in order to avoid this that you should carefuly read every aspect of the loan contract! In so far as the contract refers to the terms and conditions of the financial institution, its content should be revised aswell.