The draft law proposes to create a mechanism for consumer crediting, which will secure protection of the rights and legitimate interests of both consumers and lenders in this field, create a proper competitive environment in the financial market, increase public confidence in it, and ensure favorable conditions for development of the economy of Ukraine.
The draft law in particular proposes:
To oblige in the law banks or other financial institutions to assess creditworthiness of borrowers;
To define requirements to advertising under the Directive 2008/48/EC on credit agreements for consumers, particularly as to the information on effective interest rate. It is envisaged that the calculation of effective interest rate will be made taking into account all interests on the credit and payments for other services of the lender related to the credit. This requirement will apply only if advertising materials contain any data (figures) regarding consumer’s expenditures;
To regulate the activity of credit intermediaries;
To change the order of repayment of claims under the agreement on consumer credit as follows:
In the first stage paid will be the amount of overdue debt,
in the second stage - current payments on the principal of the credit and interest, and in the third - penalties. According to the current wording of the Civil Code of Ukraine, the principal amount of the credit is paid in the third stage, and penalties in the second;
To settle the issue of provision of additional and related services under consumer credit agreements.
Respective draft law was registered under No. 2455.