Amendments To The Consumer Protection Act

Original Language Title: Grozījumi Patērētāju tiesību aizsardzības likumā

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The Saeima has adopted and the President promulgated the following laws: the amendments to the consumer protection law in consumer protection law (the Republic of Latvia Saeima and the Cabinet of Ministers rapporteur, 1999, no. 9; 2002, 1. No; 2003; 2004, nr. 11, no. 11; 2005, nr. 24; 2007, nr. 9, 12, 15; 2008. no; 2009, no. 13; Latvian journal, 2009, no. 194; 2010, 183, 206. no; 96. in 2011, no; 13. No, 193; 2014, 92, no. 189; 2015, 42, 118, 127 no). the amendments are as follows: 1. Article 1: Add to paragraph 9 with the following sentence: "If the loan repayments secured by real estate or credit goal is to acquire or retain the right to real estate, the total cost of the credit to the consumer shall also include property evaluation costs, if such an evaluation is required for receiving the credit, but does not include the fees associated with real property recording and related strengthening of the law in the land."; Supplement to the article 10, 11 and 12 of the following paragraph: ' 10) the credit intermediary: a natural or legal person who acts not as a loan originator, but his economic or professional activities for a fee under the agreement may be concluded in the form of cash or any other form of financial consideration, and do one of the following: a) offers credit agreements to consumers or presenting them (b) in the name of employer) credit switch credit agreements with consumers, c) provides assistance to consumers, making the lending contracts related preparatory work (if the loan repayments secured by real estate, other pre-contractual administrative tasks); 11) the credit intermediary's representative: the natural or legal person who carries out the obligations as credit intermediaries, only one credit in the name of the intermediary and assumes full responsibility; 12) staff — natural person: a) which employs credit or the credit intermediary and whose contact with consumers or activities covered by the consumer credit laws regulating, b) which work as credit intermediaries and representatives contact consumers by conducting activities covered by consumer lending laws and regulations governing, c) which directly managed or supervised by this point "a" and "b" referred to natural persons. " 2. in the third subparagraph of article 4.1: to make paragraph 10 by the following: ' 10) contracts, prepared by a notary, bailiff or other officer of the country of comparable person; " Add to part with the following paragraph 11: "11) gambling." 3. turn off the first paragraph of article 4.2. 4. in article 8: Express 1.1 introductory part the following wording: "(11) the lending service consumer may provide that the Corporation has received a special permit (license) consumer lending for a service [hereinafter special permit (license)] and paid share capital minimum size is 425 000 euro. These requirements do not apply to: "; to replace the 2.5 parts in paragraph 2, the words "to be repaid on demand or within a period not longer than three months" with the words "or the credit, the credit's use to payments issued card"; replace the paragraph, the words "2.6" with the words "the provisions of the Treaty"; to make the fourth subparagraph by the following: "(4) the cabinet shall determine: 1) before conclusion of the contract of consumer credit pre-contractual information content and delivery arrangements; 2) additional conditions for the provision of services; 3 consumer credit contract) sliding and the information to be contained therein; 4) annual percentage rate calculation method; 5) foreign currency and variable interest rate loan conditions; 6) informing the consumer lending during the term of the contract; 7) early repayment of the credit and the total cost of the credit to the fair; 8) individual lending type of contract, the applicable requirements; the Council going to 9) sliding; 10) the credit intermediary and credit intermediary agents; 11) legal framework for consumer lending against pledge of movable things. "; make part of this version 4.4: "(44) by following this article 4.1 and 4.2, the obligations set out in part a credit provider is obliged to request, obtain and assess information on the consumer's income and expenditure in accordance with the execution of the obligation. The consumer is obliged at the request of the grantor to provide information about your income and expenses. Grantor is entitled to grant credit only after it had examined the ability of consumers to repay loans and the evaluation shows that the credit obligations, most likely will be met in accordance with the provisions of the Treaty. If the credit application is rejected, the grantor shall immediately inform the customer of such rejection and, where applicable, and that the decision-making process is automated. "; to supplement the article with the fifteenth and the sixteenth part of the following wording: "(15) drawing up consumer lending services, giving credit, providing the credit intermediary service, giving advice, providing additional services in connection with lending services to consumers or by the lending agreement, credit, credit intermediary or a representative acting as credit intermediaries in a fair, equitable, transparent and professional manner, taking into account the rights and interests of the consumer. By giving the consumer lending laws regulating understands individual recommendations to the consumer for a single transaction or several transactions involving lending agreement and what is from the granting and the negotiation of the activities individually separated. (16) institutions within the limits of its competence and the budgetary resources allocated within the cooperation with the consumer protection associations promoting consumer education in the area of consumer lending, especially on responsible borrowing and debts management. " 5. Express 8.1 article as follows: "article 8.1. Special provisions relating to repayment of credits secured by mortgage on immovable property or the purpose of which is to acquire or retain rights to real estate (1) article 8 of this law, fifteenth part of these activities must be based on information about the circumstances and needs of the consumer, for which the consumer has notified the grantor of credit and reasonable assumptions about the possible risks that may arise in the consumer credit contract at the time. (2) the manner in which the grantor will reward your staff and credit intermediaries, as well as the way the credit intermediary reward your staff and representatives of the credit intermediary, shall not be an obstacle to this law, article 8 of the fifteenth part of this obligation. (3) credit, developing and applying policy staff remuneration, which shall assess the consumer's ability to repay the loan, according to the credit of the amount of the transaction, for internal organization of work, the nature and complexity of the activities shall ensure that: 1) remuneration policy promotes sound and effective risk management and is compatible with it, and does not encourage risk-taking that exceeds the allowable credit limit of risk; 2) remuneration policy conforms to the credit of the business strategy, objectives, values and long-term interests, and include measures of conflicts of interest and corruption risks, in particular by providing for the remuneration shall not depend on the number of applications accepted credit or merchandise. (4) if the grantor, credit intermediaries or credit intermediary agents give advice to the consumer counselling staff involved in the structure of remuneration does not adversely affect its ability to act in the interests of consumers, and in particular does not depend on sales targets. (5) before a consumer credit contract of credit intermediary or representative as credit intermediaries is not allowed to seek any payment from the consumer directly related to consumer lending agreement. (6) the grantor, the credit intermediary and credit is the responsibility of the representative of the mediator to maintain its obligations to staff the appropriate level of knowledge and competence in relation to: 1) consumer credit contracts, offering or developing; 2) credit intermediation activities, if applicable; 3 at the Consumer Council), if applicable; 4) additional services if a consumer credit agreement includes an additional service. (7) credit, credit intermediary or a representative of the credit intermediary in the development policies of their staff knowledge and competency levels, the professional qualifications of the staff providing the requirements for staff training, staff training programs or regular competency tests. The sixth part of this article the requirements referred to in regard to the level of knowledge and competence must include at least the right knowledge: 1) for lending services and, if necessary, additional services usually offer together with them; 2) for a consumer protection and other legislation applicable to consumer credit contracts; 3) the real estate acquisition process, the evaluation of the security of real property recording and related strengthening of the rights in the land; 4) about the lending market; 5) about the ethics of economic activity; 6 on the process in which) assesses the consumer's ability to repay a loan, or in a particular case, the competence to evaluate the consumer's ability to repay loans; 7) on financial and economic issues. (8) the grantor, who received from the consumer credit demand, it is obliged to offer him the choice of at least two different consumer credit contract terms, one of which provides that real estate, which takes credit for the purchase, serves as sufficient collateral for liabilities to credit employers could be deleted in full. (9) in addition to the credit of this law article 8 in part 4.1 and 4.4 of these requirements to assess the consumer's ability to repay the loan should also take account of other factors that are essential to ensure that the consumer is able to execute from the credit contract, including the information provided by the consumer to the credit intermediary or representative as credit intermediaries credit application process, as well as the ability to meet the guarantor from the guarantee contract. The information obtained by the credit provider properly tested, including, if necessary, using independent verifiable information. Credit intermediary or credit intermediary concerned representative grantor of the consumer received the information needed to assess the consumer's ability to repay the loan. (10) before the consumer credit contract credit of clear and understandable specifies what information and verifiable evidence has to be presented to the consumer in order to assess its ability to repay the loan, and the deadline for the submission of this information. Such a request is reasonable and does not go beyond what is necessary for the proper conduct of this evaluation. The credit provider may require clarification with respect to information received from a consumer, if this is necessary to assess the consumer's ability to repay the loan. The credit, the credit intermediary and credit intermediary's agent warns consumers that credit will not be awarded if the information submitted is not completeness makes it impossible to assess the consumer's ability to repay the loan. (11) prior to the conclusion of the contract of guarantee, the employer shall inform the consumer credit lending contract guarantor of guarantee commitment, essence and consequences occurs when a consumer (the main debtor) does not run from a consumer credit contract. (12) the grantor must develop, document, and maintain procedures and information-based evaluation of the consumer's ability to repay the loan. Evaluation should not be based solely on the value of the property that exceeds the amount of the credit, or the assumption that real estate values will increase. The evaluation may be based on the assumption that real estate values will increase in the event of a consumer credit contract, the aim is to make the works in real estate. (13) the real property assessment can make laws established a certified real estate appraiser. Real estate appraiser has the obligation to provide an independent and objective assessment of the real estate. Real estate assessment maintained in paper form or in any durable medium. Documentation of the credit. (14) credit the employer is not entitled to request a consumer who has not made a significant breach of contract: 1) credit issued additional security, based on the fact that the supply of credit to the real estate value has fallen real estate market changes ; 2) any costs on the mortgage collateral revaluation for the duration of the contract, except where credit is granted based on the assumption that the existing security property value increases; 3) issued early repayment of the credit. (15) the fourteenth paragraph of this article shall not apply where, in accordance with the Court's ruling against the appraisal issued credit security is the focus of a good drive to third parties. (16) if the consumer has not made a significant breach of the contract, the employer must credit to consider a proposal for a consumer credit repayment terms prolongation or exchange credit. In the event of refusal of an employer to provide consumer credit to motivate a response within 30 days. (17) the sixteenth article of the Treaty referred to in rule changes must not be less favourable to the consumer over the changes to be made in the contract at the time of the offering of existing market conditions. Consumers in the sixteenth part of the above changes shall be entitled to require no more than once a year. Credit management has no right to claim any compensation for any such changes, unless justified and reasonable service charge for administrative expenditure. (18) an essential breach of contract within the meaning of this article shall be considered: 1) credit repayment or interest payment delay of payment for more than 60 days, or more than three times a year, each time longer than 30 days; 2 do not use credit) credit agreement with its intended purpose; 3) intentionally providing false information to receive the credit. (19) the consumer credit agreement the guarantor has the right to request and credit the employer is obliged to provide information about the payments made by the consumer in accordance with consumer lending agreement, term, payment schedule and on the remaining debt. (20) before the expiry of the contract the consumer lending and real estate credit for initiating the disposal, if possible, offer the consumer solutions that allow the continuation of a consumer credit contract, as well as inform the guarantor of consumer debt, for the chance to pay the guarantor or to take over the obligations of the consumer. (21) the grantor must store the information about the property type, which are used as collateral, as well as the credit risk evaluation of applied policies and procedures. " 6. To supplement the law with article 8.2 the following: ' article 8.2. The order in which records the credit intermediary and credit intermediary's representative, which offers consumer credit repayments secured by mortgage on immovable property or the purpose of which is to acquire or retain rights to real estate (1) the credit intermediary and credit intermediary services representatives by offering consumer credit repayments secured by mortgage on immovable property or the purpose of which is to acquire or retain the right to real estate, the consumer may provide the credit intermediary and credit intermediary or in the registry of the representatives of the other European Union Member State registered in the register of the competent authorities of the credit intermediaries and credit intermediary. On the credit intermediary is not only the person who directly or indirectly introduces consumer with credit management or credit intermediary. (2) the credit intermediary and credit intermediary keeps record of the representatives of the consumer rights protection centre. (3) the order in which the credit intermediary and credit intermediaries are registered representatives of the registry and the registry, removed from the register to be included in the message volume and the escalation procedures, professional indemnity insurance conditions, country of registration fees and the annual monitoring of national toll and its payment procedures, arrangements, cooperation with the other European Union Member States competent authorities, as well as credit intermediaries and credit intermediary representatives is determined by the Cabinet of Ministers. " 7. Supplement article 9 the fifth subparagraph of paragraph 1, after the word "provider" with the word "permanently". 8. in article 12: Add to tenth after the word "the" with the word "normally"; the twelfth, expressed as follows: "(12) If the right of withdrawal by the consumer during use and in connection with distance contracts or agreements concluded outside the permanent economic or professional activity is other extra concluded contract, under which the consumer acquires goods or services in connection with a distance contract or the contract concluded away from business premises, and that the goods supplied by the seller or the services provided by your service provider or a third party on the basis of the third party and the vendor or service provider agreement, the additional agreement is terminated and the consumer has no obligation to pay any other costs other than the seventh, ninth and eleventh in the part. " 9. in article 12.1: replace the fifth paragraph, the words "not valid" with the words "termination"; turn off the eighth paragraph 3 of part; to supplement the article with the ninth subparagraph by the following: "(9) in the case of a consumer credit contract for the acquisition of immovable property or contracts where repayment is secured by a real estate mortgage, consumer lending agreement, the parties may agree that the right of withdrawal period shall expire at the moment when the property rights or land register or registered mortgage loan amount transferred to the consumer credit contract contains third party." 10. Article 17, first paragraph: to make paragraph 1 by the following: "1) the goods or services the main characteristics of the type of information and the corresponding goods or services;"; make point 7 by the following: ' 7) where appropriate, the duration of the contract or the termination of conditions if the contract is concluded for an indefinite period or automatically extended; ". 11. Make the article 24 as follows: "article 24. Monitoring and control bodies (1) in this Act and the other the statutory consumer protection supervision and control exercised by the consumer protection centre, other competent and authorized State institutions in cooperation with local authorities and consumer protection associations. (2) this law, article 8.1 of the sixth and seventh subparagraph compliance monitoring and control with regard to credit grantors who have financial and capital market participants in the financial and capital market Commission of the law within the meaning of article 4, the financial and capital market Commission. " 12. Express article 26.3 the fifth subparagraph of paragraph 3 as follows: "3) or the appearance of a dispute is considered out-of-court Solver as well when the dispute is extrajudicial dispute resolver;". 13. in article 16.6: a supplement to the second part of paragraph 5 by the following: "5) a statement that the dispute over this issue in the application is not and has not been adjudicated at extrajudicial dispute resolver."; Supplement fifth with the sentence the following wording: "If this article referred to in the second paragraph of the information and documents referred to in the third subparagraph, previously submitted to the consumer rights protection centre, you do not need to submit it again." 14. Replace article 16.7 of the first and third paragraph, the words "three working days" with the words "and the number immediately, but not later than 10 working days". 15. Replace article 26.10 in the second paragraph, the words "the Commission shall have the right" with the words "the President of the Commission is entitled". 16. To supplement the article with part 1.1 26.12 the following wording: "(11) the Commission decision to meet consumer requirements, based on the conclusions of the expert, which paid consumers, it may decide that the costs to be borne by the expertise the seller or the service provider." 17. Make the third paragraph of article 31.2 the following: "(3) the seller or the service provider is prohibited from payment of the offered product or service, require from the consumer for the use of the payment of a fee, the amount of which exceeds the seller or the service provider concerned, expenditure in connection with the use of payment, except in cases where the recipient of the payment is not allowed to seek from the payer a charge for a specific payment instrument." 18. transitional provisions be supplemented with 31, 32 and 33 as follows: "Cabinet of Ministers 31 until 2016 31 October issued this law article 8, the provisions referred to in the fourth paragraph. Up to the issuance of these rules apply to the Cabinet of Ministers of 28 December 2010 the Regulation No 1219 "provisions on consumer lending". 32. Article 8 of this law, the first subparagraph shall enter into force on March 1, 2017. 33. Article 8 of this law, the second and third paragraphs enter into force simultaneously with the amendments to the law "on tax and duty", but not later than January 1, 2017. " 19. Add to the informative reference to directives of the European Union with 14 the following: "14) the European Parliament and of the Council on 2014 4 February 2014/17/EU directive on consumer credit agreements in connection with residential real estate and amending Directive 2008/48/EC and the 2013/36/EU and the Regulation (EU) no 1093/2010." The law shall enter into force on 1 august 2016. The Saeima adopted the law on 9 June 2016. The President r. vējonis 2016 in Riga on June 29.