Penalty free loan is a way to repay the loan without the associated cost him, as interest or fees. With the sanctions we can use in case the lender has not fulfilled its obligations. What?
Consumer Credit Act imposes a number of obligations on lenders who relate to, among others, information obligation and shape of a credit agreement. This should include a set of data including indication of the type of loan, the total amount together with the terms and manner of payment, and the interest rate and the terms of its changes, the annual percentage rate, the total amount payable together with the all the assumptions made in its calculation (including the costs which the borrower is obliged is to pay in connection with the contract) and the rules and terms of repayment of the loan. The agreement shall be designated as the time of its duration, information on the annual percentage rate of past-due debt, a possible way of collateral and loan insurance, as well as records concerning the timing, method and effect of cancellation of the contract and the customer's indication of its right to repay the loan prior to the date of giving effects of such repayment.
Failure to meet these conditions by the lender causes a civil consequences. Of particular interest in this case for the so-called records. free loan sanction because article 45 in / in the Consumer Credit Act states in paragraph 1 that: "In the event of a breach by the lender art. Paragraph 29. 1, Art. 30 paragraph. 1 point 1-8, 10, 11, 14-17, and art. 31-33, the consumer, the lender deposit a written statement, returns the loan without interest and other loan costs payable to the lender on time and in the manner set out in the agreement. "Hence, if the lender is not in breach of any obligation imposed on him the information, the consumer has the right to repay the loan without interest and other costs (excluding costs of setting up security for the loan). Importantly, this provision also applies to mortgages, but in their case costless period does not apply throughout the crediting period, and was reduced to four years.
It is worth noting also that the lack of fulfillment of the obligation of information does not necessarily give rise to any actual damage, and the only thing to do to with the sanction of the loan free to use, you only give the lender a statement indicating the violation of a specific obligation to Information Act.