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 come into effect.
On November 24, “the regulation protecting consumers against the offer of financial products, goods or services by a person or entity not authorized to carry out this 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 situations of financial fraud caused by entities not authorized to engage in such activities, such as borrowing money and purchasing insurance, which have been reported 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 advertise, offer, provide, 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.
• Financial regulatory authorities are competent to require the blocking of access to websites, the Internet protocol or the domain name system or to remove certain illegal content.
• Communication duties are established for notaries, lawyers, solicitors 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 disbursed through a banking instrument.
• Reinforcement of public information in complaint channels against unauthorized financial activity.
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