Consumer Loan Agreements are financial transactions between individuals and credit institutions (banks, microfinance organizations) intended for personal, family, or household purposes. Although this product is widely available, borrowers often do not realize the risks and hidden costs hidden in the "fine print" of the agreement. Effective interest rates, penalties, prepayment fees, and forced insurance are issues where consumer rights are most frequently violated. Legal.ge allows you to connect with lawyers who will protect your rights from unfair terms and help you in disputes with financial institutions.
What does Consumer Loan legal service cover?
The service focuses on protecting the interests of individuals and includes:
- Pre-signing Agreement Analysis: Checking the terms offered by the bank or online lender and explaining the real financial burden.
- Effective Interest Rate Verification: Determining whether the real cost of the loan exceeds the maximum limit set by law.
- Challenging Unfair Terms: Invalidating contract clauses that put the consumer in an unequal position (e.g., unilateral interest rate hikes).
- Problem Loan Management: Legal assistance during delinquency, negotiating restructuring, and dealing with the National Bureau of Enforcement.
- Cancellation of Illegally Accrued Penalties: Reducing disproportionately high penalties through court or out-of-court means.
Common scenarios and needs
Citizens need legal assistance in the following cases:
- Mortgage Loans: Buying an apartment with a mortgage where the loan is pegged to a foreign currency, and exchange rate fluctuations increase the burden.
- Installment Plans: Buying household appliances or cars on installment, where a "0%" rate is actually loaded with high commissions.
- Online Loans: So-called "fast loans" where interest and penalties often reach astronomical figures.
- Guarantees/Suretyship: When a person becomes a guarantor for someone else's loan and later discovers they are liable for repayment.
Georgian Legal Framework
Consumer rights are protected by several important acts:
- Civil Code of Georgia: Defines the maximum interest rate and penalty amounts for loans.
- Law of Georgia on Protection of Consumer Rights: Obliges the lender to provide full and transparent information on loan terms.
- Order of the President of the National Bank on Approval of the Rule for Protection of Consumer Rights when Issuing Loans: Strictly regulates the form and content of the agreement.
Service Process Step-by-Step
Working with specialists on Legal.ge includes:
- Documentation Review: Analyzing the loan agreement, payment schedule, and account statement.
- Identifying Violations: Detecting clauses that are non-compliant with the law.
- Submitting a Claim: Preparing an official letter to the bank or microfinance organization.
- Dispute: Filing a complaint with the National Bank or a lawsuit in court if necessary.
Why Legal.ge?
Financial institutions possess strong legal departments, against which it is difficult for an ordinary citizen to fight alone. Legal.ge is a platform that equalizes the balance of power. We connect you with lawyers who know every nuance of consumer rights protection and can safeguard your family budget from illegal charges.
Updated: ...