On Oct. 8, ITA OAM issued communications on ban for brokers, other.
ITA OAM issued Communication 38/24 on ban for subordinated loans as credit brokers must not offer loans subordinated to opening of current accounts.
Also issued Communication 37/24 on general management headquarters' location.
Overview
ITA OAM reminded it is a prohibited practice to combine the mentioned operations as is combined sale, emphasized will monitor members to ensure transparency of behavior.
With Communication 37/24, all credit intermediaries were invited to verify, and if needed correct by Oct. 31, data accuracy re general management headquarters.
Key Aspects
Credit brokers must not offer consumers real estate mortgages tied to simultaneous mandatory opening of a current account contract with salary crediting.
These are behaviors not permitted by transparency and fairness regulations toward consumers and are in conflict with the Consumer Code.
ITA OAM underlines it is within its remit to monitor compliance with obligations re transparency and correctness in relationships with customers by credit mediators.
Invites control functions of credit mediation companies to verify compliance with regs by distribution network used for contact with the public as improper behaviors will be reported to the competent authorities.
Com 38/24 highlights that, in line with ITA CB Transparency Provisions, possible to offer, alongside financing contract, other ancillary contracts but under stringent terms.
In particular, organizational and internal control procedures must be adopted to ensure assessment of risks associated with simultaneous offering of multiple contracts.
Also comprehensibility for customers of structure, characteristics and risks typically associated with combination of products offered simultaneously.
Correct inclusion in APR of costs of ancillary services connected with credit contract.
Compliance with the principles of transparency and fairness in marketing procedures.
Further, forms of remuneration and evaluation of staff, network must not encourage joint sales to greater extent than separate sales.
With com 37/24 calls on financial agents, legal entities and mediators to comply with reporting obligations on headquarters of general management, clarifying that this is usual place of work of company Administrator and/or General Manager.
Effectiveness
Credit intermediaries must verify correctness of what communicated in context of Com 37/24 and make any changes in the Private Area by Oct. 31, 2024.
