Provision.14 of Law 2 / 2009 of 31 March 2009, which regulates the contracting of consumer loans or mortgages, brokerage services for the procurement of a loan or credit, and the duty of the company to provide certain information to consumers prior to the contract.
This information needs to be provided in writing or in any medium that provides a record of the date of receipt by the addressee and their conservation, reproduction and access to that information (provision 14. 2)
Failure to meet the information requirements as well as those relating to the provision of such prior information may lead to the invalidity of contracts, in accordance with civil legislation, without prejudice of the integration of contracts according to provisions 61 and 65 of the Revised General Act for the Protection of Consumers and Users and other laws.
Regions can add complementary requirements to these established by this National Law.
Information about the company
Companies offering these services must provide the following information:
1. Identity number or tax identification code, name, address and principal activity of the company.
2. Where appropriate, the company´s website and its franchise character.
3. Civil liability insurance or guarantee and credit or insurance company hired for this coverage.
4. Register, regional or national, where the company is registered and its registration number.
Information regarding the loan or mortgage offered
1. A description of the main features of the loan or credit.
2. The total price payable by the consumer to the company including all fees, charges and expenses, and all taxes paid through the company or, when an exact price cannot be specified, the basis of calculations so that consumers can obtain the price and the annual rate expressed with a representative example.
3. A warning regarding special risks involved such as:
- contract price can increase significantly as a result of their specific characteristics or operations,
- Contract price depends on fluctuations in financial markets beyond the control of the company, whose past performance is not indicative of future results.
In any case, the consumer, through such a warning, must obtain an adequate knowledge of the risks associated with the financing, with particular reference to interest rate risk assumed.
4. Mention of other involved taxes or costs which are not paid by the company or are not billed by it. However in the event that these costs were caused by persons or entities designated by the company, the entity and its corresponding costs must be expressed.
5. Terms of payment and execution.
Information regarding the contract of the loan or mortgage must include:
1 The cases in which there is a right to obtain a binding offer in accordance with provision 16 of Act 2 / 2009 of 31 March 2009, the offer´s duration and conditions, and how to exercise it.
2 Any rights the parties may have to terminate the contract early or unilaterally in accordance with applicable laws and conditions of the contract.
3 With regard to the means of representation, which systems of dispute resolution consumers can access and how to access them.
4 Language or languages in which the contract may be made is at the discretion of the consumer when the contract language differs from the language used previously for information.