The Consumer Credit Act of 2011 imposes on the Credit Advisor a number of disclosure requirements that the Intermediary must meet in relation to the Customer. At each stage of the process, the Customer has the right to receive a complete set of information regarding the work of the Credit Advisor, the process in which he applies for financing and, above all, the parameters of the product for which he wants to apply. Part of this information, the Broker is obliged to provide the Customer himself, and the Customer has the right to ask a part, and the broker is obliged to complete this information. However, to ask, you need to know what? So what to ask a credit counselor for?
The choice of the right advisor is key
Customers often wonder how to choose a good credit advisor. The key to answering this question is to define the criteria for a good adviser. What makes a consultant good? There can be several reasons, but at the end it is most important for the advisor to have knowledge, experience and competence. I know because there are a lot of products on the market. An adviser must know them as much as possible in the sector in which they specialize. Experience because every customer is different. An adviser who has experience is able to approach the client unconventional in terms of choosing the best product. Competence, because in order to sell you have to sell. A good adviser should work on the best sales system, in which he will find an offer for each client regardless of his needs and financial situation.
What to ask a credit counselor, meaning it’s worth having a plan
Advisor Sam Spade has undergone a selection process that confirms his knowledge, experience and competence. Each consultant has a huge knowledge that he uses when choosing the perfect product for a potential customer. Customers, in turn, usually do not have experience in choosing the parameters of the offer, which is why they should take a set of topics with them to an appointment to see what to ask a credit advisor. A good introduction to cooperation is a conversation about the financial experience of a given adviser. The longer his experience, the more knowledge and confidence that the adviser will answer all the questions bothering the client. It is important to ask your credit counselor what institutions he works with, maybe some of the clients have already dealt with, which may affect your credit standing.
A good consultant has knowledge, experience and competence. This is important because there are many bank and non-bank offers on the market. You also need to be able to compare offers and look at them through the prism of the financial situation and customer expectations.
Talking about the financial situation, customer expectations and creditworthiness
By default, the adviser will always talk about the client’s expectations. Therefore, he will ask how much money he needs, for what purpose, for what period, what installment he will be able to pay. The adviser will also want to know about the client’s financial situation – he will ask about the commitments and the form of income generated. Based on this, it will check the customer’s creditworthiness. Therefore, it is worth asking an advisor about your ability, ask him to show the result after determining it in a given bank or in a non-banking company. Sometimes details can influence the scoring in BIK, such as “the fact that a client rents a flat to someone and thereby gains additional stable income”. The client should also ask the credit advisor what BIK is and how it can be built up.
The information form results from the Consumer Credit Act
The Consumer Credit Act imposes on the financing institution and on the credit intermediary the obligation to inform the Customer about the parameters of the loan or loan he is applying for. The customer can ask for details of the offer from the entrance to the agent’s office. Therefore, as a customer, I can always ask for an explanation, e.g. a representative example of a given product. It’s worth asking a credit counselor to understand the characteristics of a particular loan or credit. After completing the funding application, the credit broker must provide me with an information form. An example of the scope of information available in the information form is Annex No. 1 to the Consumer Credit Act.
The adviser is required to provide information
The adviser is obliged to provide the Customer with information from the information form. However, there is a set of questions that the Customer may ask the Agent, and this one under the Consumer Credit Act is obliged to answer. One such question is a request to provide information on how the Agent is remunerated. The Customer also has the right to know with which institutions the Agent cooperates and what is the scope of the Agent’s authorization to perform activities, i.e. whether, for example, the Agent has the right to sign the loan agreement on behalf of the financing institution.
Information obligation related to the contract
Once together with the Agent, the Customer chooses the appropriate credit offer, it is time to ask the Advisor further questions. We reach the stage of the process related to signing the contract. The consumer has the right to ask for a contract from the beginning of the credit and loan process. He also has the right to receive the contract at every stage. Before you sign a credit contract, dear Customer, ask:
- for the maximum and minimum loan amount;
- installment date and amount;
- for repayment forms;
- on the possibility of early repayment;
- whether the offer is with insurance, whether it is compulsory and what it gives to the client;
- the total cost of the loan;
- the lending process and verifications in the financial institution itself;
There are no stupid questions
The golden rule is that there are no stupid questions. Especially if we are talking about such an important aspect as taking a loan. Making a decision about a given offer can generate consequences for a very long time. It is the customer who knows best what doubts they have regarding a given offer and what to ask a credit advisor for. Customer, don’t be afraid to ask. Even those questions that seem least important can have a decisive impact on signing the contract and your satisfaction.