Scams, unexpected costs, abusive conditions... We explain how to choose the right partner for your loan.
What is the CCA ?
This is the Federal Consumer Credit Act. It is in force in Switzerland. Its main objective is to ensure the protection of borrowers' rights and to reduce the risk of over-indebtedness.
Financial institutions and intermediaries such as brokers must follow a series of established guidelines in order to comply with the rules on offers, promotions, analysis, acceptance and conditions applied when granting credit.
We talk about consumer credit, but by this we mean any personal loan, personal loan, credit... Aiming to make a sum of money available, without the need for a guarantee or deposit, in return for a repayment spread over time with the application of a contractually defined interest rate
So the CCA applies if I borrow
CHF 100 000 ?
No. Other regulations may apply above CHF 80'000.
The CCA is only applicable up to this amount.
In reality, most loans granted are less than CHF 80,000, so the majority of cases are covered.
Note that the CCA also applies to credit cards and leases
In the event of a dispute, you may also refer to the CCA in these cases.
My rights ?
Let's review some examples and avoid credit scams :
- « My broker or other intermediary informs me that an oral agreement has been reached. This is enough and no need for paperwork, a proper contract is not necessary. »
Scam score : 9/10.
Do not accept an agreement or payment of money without a contract clearly stating the net amount of the loan, the rate applied and the conditions. - « I am informed that once the contract is received, it is effective immediately because the conditions discussed are included. »
Scam score : 10/10.
It's not true. You have a right of withdrawal of 14 days from receipt of the contract. Provided that this contract contains all the information discussed and approved, your right of revocation remains in force. - « I am told, given the favourable conditions, that you will not be able to repay early and that heavy penalties will be applied if you do not. »
Scam score : 9/10.
False again. Although some financial institutions provide for prepayment charges, these fees are severely limited or, in some cases, not charged.
It is your right to repay the balance in advance as soon as three monthly payments have already been paid. Heavy penalties would go against the spirit of the CCA. - « I learned that it was impossible for me to gather several loans or even to discuss with another intermediary to possibly benefit from more advantageous conditions. »
Scam score : 10/10.
You have these rights and must not accept these terms and conditions under any circumstances. These are not legal.
Our obligations ?
As a responsible financing platform, we strictly apply the rules dictated by the CCA.
While being a for-profit company, we understood from the outset that the only ethical, responsible and intelligent approach was to work for the well-being of our customers. In this spirit, our obligations must be respected at all costs.
The maximum interest rate applied to your credit.
This can change according to trends in the global economy and decisions taken by central banks. The recent issue of inflation may have led to increases.
Here too, it is the authorities who define possible increases in credit and who cap the rate in question.
In this case, 15% is the maximum interest rate allowed.
If you are presented with a higher rate as a last resort, refuse because the party concerned does not respect the law. We even invite you to denounce it.
The obligation to compile a credit report according to the rules of the art.
It's the least we can do, the very heart of our business.
How?
By establishing a fair file, reflecting your financial and budgetary reality, taking into account the prerequisites of our financial partners, aiming for the right balance between the realization of your project and your ability to repay...
Above all, we remain attentive to you throughout and aim for a favorable response via a process that is simple to understand and easy to navigate.
Moreover, our technological tools now allow for personalized and fully digitized processing. No need to travel, no need to send a post, everything is done digitally, from sending your documents and supporting documents to the electronic signature of your credit agreement.
No fees !
The most common scam is that of supposed fees to be paid.
- « Application fees are calculated »
- « Administrative burdens are to be expected »
- « A commission is due in case of acceptance»
- « We will need a deposit to process the application »
- « We have costs to cover for access to your credit data»
Do not put your project in the hands of these scammers.
As stipulated in the CCA, you do not have to pay any fees or invoices related to the creation, analysis and validation of your file.
Intermediaries are compensated as part of their agreements with financial institutions, often banks, for the work done.
Milenia, simply
As you can see, It is a question of being wary of certain dubious practices.
Rely on a recognized player in the sector, based in Switzerland and with a wide range of banking partners.
Rely on advisors who will be able to support you in your personal efforts while warning you, if necessary, if the rules laid down by the CCA cannot be respected.
In both cases, it is a question of ensuring, with benevolence and professionalism, your well-being.
Lately, rely on the testimonials of our customers.
VYou will find them on our financing platform. There's nothing like the experience shared by other people; they too are determined to achieve their personal projects.
A loan must be a source of solution and not an insurmountable additional burden. We work on it every day!
Milenia, we are at your side.