Slovenian text: Tanja Piškur, General Secretary and Head of Legal Department of the Consumer Association of Slovenia (ZPS), has pointed out among the most common additional costs the cost of credit approval, insurance costs, compensation for credit management, valuation of real estate, and costs of personal account when account opening is a condition for obtaining a more favorable offer. Banks do not have to condition credit approvals by signing an insurance contract according to the law, but in practice they often link more favorable conditions to additional products, such as life insurance with a partner insurance company, which means an additional monthly premium cost. The Consumer Association advises consumers not to make their decision solely based on the contract interest rate and the monthly installment amount.
The key tool for comparing offers is the effective interest rate (EOM), as it is crucial for comparing offers, as it is the interest rate that is actually charged to the consumer.
Topics: #costs #credit #cost
