“Free” phone loan – Telegraaf.nl

telephone subscriptions which allow consumers “free” get a phone are a form credit. This subscription form is therefore the Act on Financial Supervision (Wft) apply

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writes Dijsselbloem Minister (Finance) a letter to the Lower House. The decision means that telecom providers now have to give consumers insight into the interest rate is charged. Also, the offers of “free” phones are equipped with the warning “Attention, borrowing money costs money.

The decision stems from a judgment of the Supreme Court in June 2014. A number of telecom providers and VNO-NCW and MKB-Netherlands had asked for an exception so that the Act on Financial Supervision would not apply to the telecom sector. Dijsselbloem however, that the application of the law can make a valuable contribution to tackling the debt problem and the industry is forcing more transparency on offers.

The telephone subscriptions with ‘free phone’ must also be registered with the Bureau of Credit. At present, telecommunications providers together with the foundation Preventel where arrears are registered with telecom providers. Dijsselbloem sees no obstacle to align the two systems together.

The rules only apply to a loan of € 250 or more. Providers so there may also choose not to provide loans above this value and if necessary, request a higher payment.

The decision is also applicable to other industries that charged subscription fees also serve to repay a product such as newspaper subscriptions which a tablet comes

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