No consumer credit for Belgians in arrears

Belgians with payment arrears are no longer allowed to receive consumer credit. According to the newspaper De Tijd, this is one of the measures that Minister of Consumer Affairs Johan Vande Lanotte wants to take to better protect consumers. The number of Belgians with at least one payment arrears increased by 5.4 percent to 336,000 last month.

No more loan for Belgians who are in the red
No more loan for Belgians who are in the red

The Belgian Minister of Consumer Affairs Johan Vande Lanotte has a new bill ready to prevent Belgians with payment arrears from being granted consumer credit . In the future, it will become impossible for consumers in arrears to obtain consumer credit. That is one of the measures that Vande Lanotte is planning to better protect consumers.

Last year, more than 21 billion US dollars were outstanding in Belgium in loans for cars, refrigerators or travel. However, more and more Belgians are no longer able to pay off their loan. Due to the measure taken by Vande Lanotte, banks will soon have to check for themselves whether the applicant is still creditworthy. Promotions to encourage credit purchases will also be prohibited. In addition, consumers can cancel the contract if the interest on the loan rises two percentage points above the agreed level.

A number of banks in Belgium warned the Minister of Consumer Affairs that the measure could cost at least 1000 jobs. “We agree with better consumer protection, but is it necessary to go beyond Europe?”, Wonders Ivo Van Bulck, secretary-general of the Professional Credit Association.

Published October 21, 2013 at 12:34 PM by the editorial staff .

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