Rejection of approved mortgage loan

Article 48.2 of Law 26/1988, of July 29, 1988, on Discipline and Intervention of Credit Institutions, empowers the Minister of Economy and Finance so that, in order to protect the legitimate interests of the customers of credit institutions, he may establish a set of specific obligations applicable to the contractual relations between them and require the communication of the conditions of certain transactions to the administrative authorities in charge of their control.

In this situation, Law 2/2011, of March 4, 2011, on Sustainable Economy, has not only represented a significant advance in the field of banking transparency, but has also provided a novel approach. On the one hand, it has given regulatory form to the concept of responsibility in the granting of loans to consumers by credit institutions, establishing the obligation of these to carry out an adequate evaluation of the solvency of customers, in accordance with a set of criteria and practices that are also listed; and, on the other hand, it has empowered the Minister of Economy and Finance to “approve the necessary rules to guarantee the adequate level of protection of users of financial services in their relations with credit institutions”.

How a loan is repaid

The quotations of installments are established as an illustrative orientation to the user and do not include the insurance policies, since these parameters depend on the particular conditions of each investment.

In the case of employees of the Institution and pensioners of the R.I.V.M., if the monthly mortgage loan installment is not reduced, they should go to any institutional branch to make the corresponding payment.

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The user must hire a lawyer and notary for him/her to process the mortgage release. In addition, inform the notary that the certification of Cancellation of Mortgage will be delivered the day of the formalization, which must first present the draft of the deed according to the indications that are shown below.

The presentation of requirements and documents at the service platform of the Jorge Debravo Building of the Pension Management, located in San José, between AV.8 and Calle 21, South-East side of the Supreme Court of Justice.

State Bank Mortgage Set

In a loan, the customer (borrower) receives an amount of money that he has previously requested. The amount of this loan must be repaid, together with accrued interest, within the period of time previously agreed with the financial institution (lender). The payment of the loan is normally made in regular installments (monthly, quarterly, half-yearly…) over the term of the loan.

In the case of the credit, the client does not have to request this money, the bank makes it available to him. The customer only pays for the money at his disposal. Normally, the interests are higher than those of the loan.

This type of loan is very popular in the United Kingdom and the United States, although its use is becoming globalized. These are loans aimed at financing university tuition fees, postgraduate studies or masters’ degrees. The interest rates of student loans are cheaper than those of personal loans.

Consumer loan examples

The truth is that what is a consumer loan or credit often generates discrepancies: are all personal loans consumer loans, can there be consumer mortgage loans, etc.? We are not going to complicate our lives with theoretical disquisitions. In this post we are going to explain what consumer loans or credits are, those that the Law/162011 defines as such. And what is this definition?

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By the consumer credit contract a lender grants or undertakes to grant to a consumer a credit in the form of deferred payment, loan, opening of credit or any equivalent means of financing.

In other words, and this is important, for the purposes of this Law, consumer credit is not credit granted to legal entities in any case, nor is it credit granted to natural persons if the purpose is related to their commercial or professional business.

If a patrimonial society finances a trip, it is not a consumer loan. If a merchant finances a work in his store, it is not a consumer loan. It will then be an ordinary commercial loan (Commercial Code, Civil Code and other applicable legislation). The curious thing is that, to effects of the Law of Consumers and Users, yes that they are consumers and enjoy the rights that this one recognizes to them, but we insist in that not of those derived from this Law.