Unlicensed entities lending money – The Portugal News
DECO warns that there are unlicensed entities that lend money but are not authorized to do so. In 2022, new rules to protect people against fraud will be in effect.
On November 24, “the regulation for the protection of consumers against the offering of financial products, goods or services by a person or entity not authorized to carry out such activity was published,” DECO Algarve said.
This bill aims to defend and protect the rights and interests of consumers, taking into account the harmful effects on financial, social and family life that may result from taking out these loans.
DECO frequently receives complaints from consumers affected by financial fraud situations caused by entities not authorized to engage in such activities, such as borrowing money and purchasing insurance, which have been communicated to financial regulatory authorities.
DECO lists the new changes that have taken place with this new regulation, designed to prevent these frauds from occurring. According to the association, here are the new requirements for the operation of these activities:
• General obligation not to publish, offer, supply, sell or distribute financial products, goods or services by any person or entity that is not legally authorized to do so.
• New rules concerning the advertising of financial products, goods and services which can only be carried out by authorized entities.
• The financial regulatory authorities are competent to require the blocking of access to websites, Internet protocol or the domain name system or to remove certain illegal content.
• Communication obligations are established for notaries, lawyers, notary offices or chambers of commerce and industry – they must communicate these contracts or files to the Bank of Portugal
• A new requirement is established for private loan contracts with a value greater than € 2,500, in which the loan amount must be issued by a banking instrument.
• Strengthening of information to the public in complaint channels concerning unauthorized financial activities.
If you have any questions, please find out more at gasdeco.net.