Most in-store credit offers break the rules, says minister

More than six in 10 retailers that offer credit plans are in breach of consumer credit laws, according to a report by the federal economy ministry’s economic inspection unit. Consumer affairs minister Kris Peeters said he would be proposing new measures to tackle the problem.

Last year, authorities carried out inspections in 137 shops that offer credit to customers, usually to buy large items such as furniture, TV or large appliances. The shops concerned – both independents and chains – were spread across a number of sectors, including home furnishings, electrical goods and fashion.

The inspectors looked at issues such as advertising of consumer credit, information on products and services, registration of the business and obligatory information provided by the store. In 62% of cases, inspectors found one or more breaches of the regulations. Warnings were issues in 118 cases, and further investigation is being carried out in four cases.

In 46% of cases, the legally required representative example – to show consumers how much they could expect to pay if entering into a credit agreement – was missing or insufficient. In 34% of cases, the standard information that must be included was in print smaller than legally required. And in 21% of cases the obligatory warning “Attention: borrowing money also costs money” was missing.

“We have made it clear that we take the reduction of excessive debt burden very seriously,” Peeters said, presenting the results of the study. “Debt is a Sword of Damocles hanging over our economy, our society and the financial sector. The economic inspection will continue to take action against those who ignore the rules, and in doing so cast a shadow over the whole sector.”

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