On 24 November, “the consumer protection regulation against the offer of products, goods or financial services by a person or entity not allowed to carry out this activity was published”, said DECO Algarve.

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 authorised to carry out such activities, such as borrowing money and taking out insurance, which have been communicated to the financial regulatory authorities.

DECO lists the new changes that have taken place with this new regulation, drawn to prevent these frauds from happening. 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 a person or entity that is not legally allowed to do so.

• New rules regarding the advertising of financial products, goods and services that can only be carried out by licensed entities.

• Financial regulatory authorities are competent to demand the blocking of access to websites, the Internet protocol or the domain name system or to delete certain illegal content.

• Communication duties are established for solicitors, 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 worth more than €2,500, in which the loan amount must be delivered through a bank instrument.

• Reinforcement of public information in the channels for complaining about unlicensed financial activity.

If you have any queries, please find out more at gasdeco.net.

Author

Paula Martins is a fully qualified journalist, who finds writing a means of self-expression. She studied Journalism and Communication at University of Coimbra and recently Law in the Algarve. Press card: 8252

Paula Martins