Legal tip 68. Financial brokers under transparency
Wednesday, April 15, 2009 @ 10:07 AM
The Spanish National Congress has recently approved the draft of Act that regulates the offer of loans, mortgages and the brokerage services for the procurement of a loan or credit. This is a new Law that will benefit not just consumers but also those companies which offer those services, which, as not being Banks or official financial institutions were just under the regulations of Consumer Law.
There was no a unifying legal text for the regulation of these services before . Obligations remarked by the Law are mainly for transparency and information:
- Transparency obligations of companies engaged in this activity.
- Certain and clear conditions for the contracts.
- Guarantees needed
- Clear consequences for breaches of contracts
- Out of Courts mechanism for the solving of conflicts.
There are specific requirements for transparency which request certain information to be provided to the consumer 15 days before the signing of the contract.
Publicity of these services must clearly state that the brokerage/agency character of them.
Maria