The purpose of the new Consumer Credit Pricing Law is to promote transparency in pricing and to eliminate excesses from the credit market. At the same time, it opens up savings opportunities for up to a million Finns.
The competition between banks is intensifying
The new interest rate regulation tightens competition in the credit market as more and more players move to the same playing field with traditional banks. The law also forced traditional banks to look at pricing of loans and loans, especially for opening and service fees.
At present, there are more options available than ever for a low-interest loan. At the same time, the importance of bidding for loans is growing, as even the best lender can find the best loan.
The law applies only to new loan agreements
While the new law is most welcome and is expected to lower loan prices, it unfortunately does not apply to credit agreements made before September.
On the other hand, for loans or credit agreements made on or after the first day of September, the law strengthens and secures the consumer’s position more than ever. If the lender does not honor the interest rate or cost ceiling, the consumer does not have to pay the credit costs at all.
Many lenders have been actively marketing their credit products before the new law came into force. In many cases, the intention was to attract as many customers as possible because the old law gave the lender much more freedom to decide on the interest or other costs of the loan granted. The purpose of the new law is to eliminate precisely these excesses.
Old loans are worth bidding for
About a million Finns have access to consumer credit. It is now worthwhile to put your old credit agreements on a competitive footing and replace them with a lower interest rate.
“It is a good idea to try to replace expensive credit agreements with cheaper credit covered by the new price regulation” Katri states in a bulletin of the Finnish Competition and Consumer Authority. You can bid for your old loans or credits for free with Good Finance here.