When you take a consumer loan, as a natural person, you have a series of legal rights that are designed to protect you from non-compliance with the terms, improper behavior by the credit provider, or from unforeseen situations.
The Law on Consumer Credit of the Republic of North Macedonia, especially articles 14-20, regulates the communication between the consumer and the credit provider, the conditions for terminating the contract, early payment, as well as the protection against inappropriate billing practices.
Key rights of the consumer in lending
The consumer has the right to be informed and react in several ways. Cancellation of the contract before using the credit – it is possible within five days after the conclusion of the contract, with a written statement to the credit provider.
Termination of the contract is foreseen within 10 days after the first payment, if the contract does not contain all legal elements (Article 15). Premature payment of the loan is also a right – the consumer can at any time pay the undelivered part without additional costs, except for the possible costs provided for in the contract (Article 17).
Right to cancel and terminate the contract
The consumer can cancel the credit obligation with a written notification before using the credit, but no more than five days after the conclusion of the contract. The provider can only charge costs for credit approval.
If the contract does not contain the elements prescribed by Article 7 of the law, the consumer can terminate the contract within 10 days from the first payment. In this case, the provider is obliged to return all paid amounts, and the consumer to return the used part of the credit (Article 15).
Obligations of the provider in case of late and early payment
The credit provider can unilaterally terminate the contract and request early collection only if the consumer is late in paying the first or two subsequent installments, but before that he must send a written notification with a deadline of at least 15 days for the settlement of the obligations (Article 16).
The consumer has the right to pay part of the loan early, whereby his total obligations are reduced for the interest that would arrive after the day of early payment (Article 17). If the claim is assigned to another person, the provider is obliged to notify the consumer, who can highlight all the objections he had against the original provider (Article 18).
Which interest rates are too high and which commissions are illegal
The law defines a methodology for calculating the annual rate of total costs of credit, which includes interest and costs related to credit approval, fees for membership fees, insurance and guarantees, but not costs for the transfer of funds or the purchase of goods.
Early payment costs, if provided for in the contract, are not included in the calculation of the total interest. If the credit provider calculates interest or commissions that are not in accordance with the legal methodology, they can be considered irregular or "too high". The consumer has the right to request revision or legal compensation.
The provider can use the funds secured by a bill of exchange or check only for the collection of the loan – misuse leads to an obligation to compensate for damage (Article 19). If the consumer is forced to buy a product or service through credit from a certain seller, and fails to exercise his rights towards the seller, he has the right to demand compensation from the credit provider (Article 20).
Collection mechanisms – What creditors are allowed to do
Credit providers have strictly defined legal mechanisms for collection. Notarial payment order – the provider can submit a notarial payment order to a competent notary. The consumer has the right to object before the notary or the court. If the objection is not accepted, the procedure continues in court.
It is important to know that such procedures require the hiring of a lawyer, and thus additional costs arise: notary fees, court fees and attorney's fees. These costs can significantly increase the final liabilities, so it is advisable to consult professional legal advice before proceeding.
Are third parties allowed to contact you for billing?
The consumer has the right to protect his contacts. It is legally prohibited for other persons, to whom the consumer has not given his consent, to contact for collection of the credit. This includes phone calls, text messages and other communication channels.
If the credit provider or third parties violate this prohibition, the consumer has the right to object and may request compensation for damage to privacy.
Prevention and recommendations for consumers
In order to avoid problems when using consumer credit, we recommend: Checking all conditions in the contract – before signing, the consumer should make sure that the contract contains all the elements prescribed by law.
Use the legal periods of 5 and 10 days to cancel and terminate the contract if necessary. Check that the annual rate of total costs is in accordance with the legal methodology. All correspondence with the provider should be in writing and kept as evidence.
Do not give your phone to third parties and report if they contact you without authorization. In case of collection problems or excessive interest rates, consult a lawyer before starting legal proceedings.
Consumers who use consumer loans in the Republic of North Macedonia have numerous rights that allow them to be protected from improper behavior of credit providers, from inappropriate charges, excessive interest or abuse of their personal data.
The law provides mechanisms for canceling and terminating the contract, early payment, compensation for irregularities and restriction of communication from third parties. It is important for consumers to know the legal terms and rights and to seek legal help when faced with complex situations.
