Legislative Act Concerning Consumer Lending

The Act Concerning Consumer Lending (145/2010), effective as of 1.1. 2011. The following act lies within the working guidelines of the European Parliament and Counsel 2008/48/ES towards legal regulations in the Czech Republic and also newly-defined market conditions regarding consumer lending.

The law concerning consumer lending strengthens the status of consumers, explicitly regulating the conditions on offering credit by means of advertising.

The consumer further gains strength regarding withdrawal from contracts concerning consumer lending. Another significant change for the consumer is also a limitation on higher contingency fees for early repayment, which shall include a fixed term for their maximum possible rate.