Act No. 321 / 2001 Coll.
Act on certain conditions for the negotiation of consumer credit and amending Act No. 64 / 1986 Coll.
Valid
Law
Effective from 01.01.2002
Text versions:
01.01.2002
07.09.2001
321
THE LAW
of 17 August 2001
on certain conditions for the negotiation of consumer credit and amending Act No. 64 / 1986 Coll.
Parliament has decided on this law of the Czech Republic:
CERTAIN CONDITIONS FOR CONSUMER CREDIT ARRANGEMENTS
Subject matter
(1) That law lays down certain terms of the contract in which the consumer credit is negotiated in accordance with European Community law. 1)
(2) This law does not apply to:
(a) the contract in which the consumer credit is granted for the purchase, construction, repair or maintenance of the property;
(b) a lease agreement which, after a certain period of time, does not guarantee the transfer of a property right or a property right equivalent to that of a property right;
(c) a loan granted without interest or any remuneration;
(d) a consumer credit for the continuous provision of services for which the consumer may pay in the course of their provision in the form of instalments;
(e) a contract in which consumer credit is granted for amounts less than CZK 5,000 or more than CZK 800,000; where several contracts are concluded in which consumer credit is negotiated for the same purpose, a summary of all such contracts shall be considered as a single consumer credit for these purposes;
(f) a consumer credit whose maturity does not exceed 3 months or is due in no more than 4 instalments within a period not exceeding 12 months.
Definition of terms
For the purposes of this Act:
(a) by consumer credit, provision of funds or deferred payment, for example in the form of credit, loan or purchase of a hired item for which the consumer is obliged to pay. Consumer credit is not
1. payment payable by the consumer for failure to comply with the contract in which the consumer credit is agreed,
2. payment paid by the consumer outside the purchase price without a consumer credit being granted for the purchase;
3. payment for the transfer of funds and payment for the management of an account which is intended to repay the consumer credit; This does not apply in cases where this payment is unduly high and where the consumer does not have a choice of payment method; the total amount of the consumer credit, however, shall be included in the acceptance price;
4. payment related to participation in agreements which do not directly relate to a contract in which consumer credit is negotiated, even if such agreements affect the terms of consumer credit,
5. insurance payment or guarantee, unless it is an insurance or guarantee to ensure the repayment of the consumer credit in the event of the death of the consumer, of his invalidity, of his incapacity for work or of his unemployment, to a maximum of the same amount as the total amount of the consumer credit, including interest and other payments associated with the provision of the consumer credit;
(b) by the consumer, a natural person who does not act in the course of his business or other business activities when entering into a contract and for whose benefit the consumer credit is negotiated;
(c) by a creditor, a natural or legal person providing consumer credit in the course of his business or other business activity or an association of such persons;
(d) the annual percentage of consumer credit costs, the percentage of the amount due which the consumer is obliged to pay to the creditor for a period of 1 year.
Where a consumer credit or contract is offered in which a consumer credit, advertisment2) or an offer of goods or services containing an interest rate or any information relating to the cost of the credit is negotiated, they shall form part of the annual percentage of the cost of the consumer credit or an example of its calculation. The formula for calculating the annual percentage of consumer credit costs is set out in the Annex to this Act.
Some requirements for a contract in which a consumer credit is negotiated
(1) The contract in which the consumer credit is negotiated must be concluded in writing. A copy of the contract must be obtained by the consumer.
(2) The contract in which the consumer credit is negotiated must also include:
(a) setting out the annual percentage rate of consumer credit costs as set out in the Annex to this Law;
(b) laying down the conditions under which the annual percentage rate of consumer credit costs may be adjusted and which must not be dependent solely on the will of the creditor;
(c) setting the maximum amount of consumer credit, determining the amount of individual instalments, their number and precise timing;
(d) the fixing of individual payments, including those referred to in Article 2 (a) (1) to (5) if they are to be paid together with consumer credit; where individual payments cannot be specified, the method of calculating them must be indicated;
(e) the undertaking of the creditor to inform the consumer during the performance of the contract of any changes in the annual percentage rate of consumer credit costs;
(f) for contracts in which the purchase of the hired item is negotiated, the amount of the consumer credit;
(g) provisions on the right to repayment of consumer credit before the deadline (§ 11);
(h) the conditions under which a contractual relationship may be terminated prematurely;
(i) the method of payment.
(1) Where a contract in which a consumer credit is negotiated allows for a change in the annual percentage rate of cost of a consumer credit or for a change in the amount of payments related to a credit that were not quantifiable at the time of the calculation, the calculation must be based on the assumption that interest and other payments remain constant and will be valid until the end of the contract on the basis of which the consumer credit was agreed.
(2) Where the annual percentage rate of consumer credit costs cannot be determined, the creditor must indicate in the contract in which the consumer credit is agreed the maximum amount of credit, the amount of credit-related payments and the conditions under which such payments may be changed.
Consequences of non-compliance
If the consumer credit agreement does not comply with the requirements set out in Section 4, the consumer credit shall be deemed to have been remunerated at the discount rate applicable at the time of conclusion of the contract in which the consumer credit is negotiated, published for the relevant period by the Czech National Bank; other consumer credit payment arrangements become invalid, all with effect from the date on which the consumer applies this to the creditor.
The rights of the consumer vis-à-vis the supplier of goods or services (hereinafter referred to as "the supplier ') shall not be reduced by granting the consumer credit to pay them.
(1) If the consumer credit is provided by the supplier and the consumer withdraws from the contract for the supply of goods or services, the supplier shall repay the paid consumer credit; This is without prejudice to the consumer's claim for compensation under special legislation. A contract may be withdrawn only in cases provided for by law or contract.
(2) The exercise of the right referred to in paragraph 1 shall not result in an increase in the price of the consumer credit or in the application of penalties.
The right of repayment of the consumer credit pursuant to Article 8 (1) and the right to compensation may also be exercised by the consumer in writing with the creditor if the consumer concludes a contract in which the consumer credit is negotiated with a person other than the supplier; and
(a) an exclusive representation contract has been concluded between the creditor and the supplier when the consumer credit was granted, and
(b) the legitimate demand by the consumer for proper performance or for compensation for damage claimed by the consumer with the supplier has not been satisfied.
Where the consumer credit serves the acquisition of the goods and the goods are returned to the creditor or, where appropriate, to a third party, a reasonable settlement between the consumer and the creditor or, where appropriate, a third party shall be made.
The consumer is entitled to repay the consumer credit before the time specified in the contract. In such a case, the consumer shall be entitled to a reduction in payments from consumer credit by such an amount that none of the participants in the consumer credit contract would benefit unduly from the payment of the consumer credit before maturity at the expense of the other participants.
Payments by exchange or check
Where the consumer pays the consumer credit by means of a bill or a cheque, or by means of a cheque, the creditor must act in such a way as to preserve all the rights of the consumer resulting from the consumer credit contract.
Supervision of compliance
Supervision of compliance with the conditions laid down by this Act is carried out by Czech Trade Inspection.3)
Final provision
The legal relationship with regard to consumer credit arising before the date of entry into force of this Act shall be governed by existing rules.
Amendment of the Act on Czech Trade Inspection
Act No. 64 / 1986 Coll., on Czech Trade Inspection, as amended by Act No. 240 / 1992 Coll., Act No. 22 / 1997 Coll., Act No. 110 / 1997 Coll., Act No. 189 / 1999 Coll., Act No. 71 / 2000 Coll., Act No. 145 / 2000 Coll. and Act No. 102 / 2001 Coll., is amended as follows:
1. In Paragraph 2 (1), the words "or providing consumer credit 'shall be inserted after the words" the internal market'.
2. In Paragraph 2 (2), at the end of the dot, the following point (h) is added:
"(h) whether the consumer credit provider complies with the conditions laid down in the specific legislation. (e)
1e) Act No. 321 / 2001 Coll., on certain conditions for the negotiation of consumer credit and amending Act No. 64 / 1986 Coll. '
EFFECTIVE
This Act shall take effect on 1 January 2002.
Klaus v. r.
Havel v. r.
Zeman v. r.
Annex to Act No. 321 / 2001 Coll.
Calculation of the annual percentage of consumer credit costs
The annual percentage of consumer credit costs shall be calculated using the following formula:
GUIDELINE = 1K = MAK1 + ITK = IKVV = 1KVV = MKVV
Meaning of letters and symbols:
K is the serial number of the loan of the same person
K 'is the payment number
AK is the loan amount number K
A 'K' is the amount of payment number K '
It stands for a summary
m is the number of the last loan
m 'is the number of the last instalment
tK is the interval, expressed in number of years and in fractions of year, from loan date 1 to subsequent loan days 2 to m
tK 'is the interval, expressed in number of years and in fractions of year, from loan date 1 to repayment or payment dates 1 to m'
i is the annual percentage of consumer credit costs that can be calculated (either algebraically or numerically repeated approximations on the computer) if the values of the other values of the equation are known either from contract or elsewhere.
Notes:
(a) Amounts paid by both Contracting Parties at different times may not necessarily be the same and may not necessarily be paid at the same intervals.
b) The starting date is the date of the first loan.
(c) The intervals between the data used in the calculation shall be expressed by the number of years or fractions of the year. For the length of the year, 365 days or 365,25 days or (in leap years) 366 days, 52 weeks or 12 months of the same length are used. For the average length of this month, 30,41666 days are assumed (i.e. 365 / 12).
(d) The result of the calculation shall be expressed to an accuracy of at least one decimal place. For rounding to a certain number of decimal places, the following rule shall apply: If the digit at the decimal point is after the decimal point at which it is rounded up to more than 5 or equal to 5, the digit at the rounded decimal point shall be increased by one.
1) Council Directive 87 / 102 / EEC on the approximation of the laws, regulations and administrative provisions of the Member States relating to consumer credit, as amended by Directive 90 / 88 / EEC and Directive 98 / 7 / EC.
2) Act No. 40 / 1995 Coll., on the regulation of advertising and amending and supplementing Act No. 468 / 1991 Coll., on the operation of radio and television broadcasting, as amended, as amended, Act No. 258 / 2000 Coll.
3) Act No. 64 / 1986 Coll., on Czech Trade Inspection, as amended.
Sign in for notes, favorites and notifications
Regulation Information
| Citation | Act No. 321 / 2001 Coll., on certain conditions for the negotiation of consumer credit and amending Act No. 64 / 1986 Coll. |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 07.09.2001 |
|---|---|
| Effective from | 01.01.2002 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
Comments 0