Tarbijakrediidiseadus

The Tarbijakrediidiseadus, or Consumer Credit Act, is a piece of Estonian legislation that governs the provision of credit to consumers. Its primary purpose is to protect consumers from unfair lending practices and to ensure transparency in credit agreements. The law sets out requirements for credit providers, including licensing, disclosure of information, and responsible lending practices.

Key provisions of the Tarbijakrediidiseadus include stipulations on the information that must be provided to consumers before they enter into a credit agreement. This includes details about the total cost of credit, the annual percentage rate of charge (APR), repayment schedules, and the consequences of default. The law also limits the amount of interest and fees that can be charged on consumer loans, aiming to prevent excessive debt burdens.

Furthermore, the Tarbijakrediidiseadus establishes rules for responsible lending, requiring credit providers to assess a consumer's creditworthiness before granting a loan. This is intended to prevent over-indebtedness. The act also outlines consumer rights, such as the right to withdraw from a credit agreement within a specified period and the right to receive clear and understandable information about their loan. Enforcement of the Tarbijakrediidiseadus is typically carried out by relevant state authorities, such as the Estonian Financial Supervision Authority.