Consumer credit concerns loans for individuals, such as personal loans, revolving credit and purchases on instalments. The legislation provides protection against excessive debts and non-transparent terms.
Types of consumer credit
- Personal loan - A fixed loan amount with a fixed interest rate and term
- Revolving credit - Flexible credit limit to draw from when needed
- Purchase on instalments - Receive the product immediately, pay in instalments
- Hire-purchase agreement - Ownership after the final payment
- Credit card usage - When paying in instalments
Mandatory information from credit providers
Credit providers are obliged to provide clarity before closing on:
- The effective annual percentage rate (APR)
- The total cost of the loan
- The monthly repayment amount
- The duration of the agreement
- Possible costs for early repayment
Credit assessment
Prior to granting credit, a credit provider must assess your financial situation via the BKR. A loan may not be granted if it is not financially viable.
Right of withdrawal
When entering into consumer credit, you have a right to a 14-day cooling-off period. Within this period, you can cancel free of charge, provided you return the borrowed amount immediately.
Early repayment
It is always possible to repay a loan early. The credit provider may charge compensation, but this is limited to the actual interest loss.
Supervision by AFM
The Authority for the Financial Markets (AFM) supervises compliance with the rules by credit providers throughout the Netherlands, including Rijswijk.
Frequently asked questions about consumer credit
What does my right of withdrawal entail?
For online purchases, you have 14 days to return without reason, except for statutory exceptions.
How long is the warranty on products?
Products must function for at least 2 years. Defects within 6 months are presumed to have been present at purchase.
Can I claim interest on outstanding debts?
Yes, you can claim statutory interest, currently around 8% per year, on the outstanding amount.
What to do in case of misleading practices?
You can file a complaint with the Consumentenbond, a government authority or bring the matter before the court, such as the District Court of The Hague.
What is a credit agreement?
A credit agreement sets out the terms under which you borrow money, including interest and repayment arrangements.
Frequently asked questions specific to Rijswijk
What distinguishes a personal loan from revolving credit?
A personal loan has a fixed amount, term and interest rate, with a fixed monthly payment. Revolving credit offers a flexible limit, where you only pay interest on the drawn amount. This makes it more flexible, but often more expensive due to variable interest rates.
How does the 14-day cooling-off period work for loans?
Within 14 days after signing, you can cancel without costs or reason. The borrowed amount must however be repaid immediately. This does not apply to mortgages. Send a written cancellation to the provider to avoid issues.
Can a credit application be rejected outright?
Yes, if the credit assessment (e.g. via BKR) shows that you cannot afford the loan, the provider may refuse. This must be substantiated. You can ask for an explanation or approach another provider.
What does early repayment cost in Rijswijk?
Early repayment is always permitted, but compensation may be charged for interest loss. This is at most 1% of the repaid amount (or 0.5% if the remaining term is less than 1 year). Check your agreement for details.
What should I check before entering into credit?
Pay attention to the annual percentage rate (APR), total costs, monthly amounts, term and penalties for early repayment. Compare providers in Rijswijk and read the terms carefully. Account for additional costs such as administration fees.
What if I have been given an unsuitable loan?
If you believe the credit provider has been negligent (e.g. no assessment), you can file a complaint. For legal assistance in Rijswijk, you can go to Juridisch Loket Rijswijk or start a case at the District Court of The Hague.