The law defines consumer credit as the “granting, in the exercise of commercial or professional activity, of credit in the form of deferred payment, financing or other similar financial facilitation in favour of the natural person acting for purposes unrelated to any entrepreneurial or professional activity carried out.â€ť This definition includes all credit concessions made by professionals (banks or financial companies, typically) towards consumers or who operate as such. Examples of consumer credit are:
Personal loans, i.e., forms of financing that may or may not be aimed at a specific purpose (ranging from student loans to those for which no justification must be given), with payment of the financed amount directly to the applicant and for which there are a fixed term and a predetermined number of instalments;
finalized loans, i.e., loans linked to a contract for the purchase of a consumer good (car, furniture, etc …) or a service (travel, etc …). In this case, the lender pays directly to the seller, with whom he usually has an agreement;
Revolving credit openings, often supported by a magnetic card through which a credit possibility is obtained which can vary upon request by the consumer; Salary-backed loans. These are personal loans reserved for employees (public and private) with the delegation of payment of a portion of one-fifth salary. They usually require the consumer to delegate their employer to deduct from the pay the amount corresponding to the loan instalment that the bank (or the financial company) has granted.
Revolving credit, better known as revolving credit, is a payment system that has been enjoying considerable success in recent times. The revolving credit with caveat loan in Australia with Loanspal.com.au generally combined with a revolving credit card, and its operation is similar to the credit line. The company we serve allows us to use the money on credit.
The notion of consumer credit is set out in article 121 of the consolidated banking act according to which it includes “The granting, in the exercise of commercial or professional activity, of credit in the form of deferred payment, financing or other similar financial facilitation in favour of a natural person acting for purposes unrelated to any business or professional activity carried out.â€ť Obviously, this is a broad category that includes different types of relationship, from the simple deferred payment granted directly by the company to its consumer customer, to the loan given to the consumer by a third party to allow him to pay the company immediately and then pay the third lender afterwards. It should be noted that, while the granting of consumer credit in the form of deferred payment can be operated by any company (and the seller himself who agrees on the instalment of the price with his customer), the granting of consumer credit in the form of financing of the consumer can only be operated by banks or financial intermediaries (therefore, if a third party enters the economic transaction in addition to the consumer and the selling company, the third party must necessarily belong to one of these categories).
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