New Act No. 257/2016 Coll., on consumer credit, becomes effective as of 1st December 2016.
The new legislation represents the transposition of Directive 2014/17/EU of the European Parliament and of the Council of 4 February 2014 on credit agreements for consumers relating to residential immovable property and contains primarily the regulation of increased requirements necessary for the start of a business in the field of granting or intermediating consumer loans, and furthermore sets the rules for performance of these activities, which are made much stricter than up to now.
The main changes relate to regulation of conditions under which a non-banking provider of consumer loans will be allowed to conduct its business and also increase the level of consumer rights and their protection.
