• Deferred payments, quick borrowings, “free loans” - beware of offers that, especially in the run-up to Christmas and New Year, may seem appealing.
• Every loan, even a “free” one, has a cost: whether hidden in a higher price of the product itself or in the accompanying promotional add-on services.
• Check, read and compare offers.

The end of the year is a time of greater expenses, not only related to the preparations for Christmas itself and the purchase of gifts, but also often to the implementation of plans that were waiting for the last days of the year. Sensible portfolio management during this period is not facilitated by intensive advertising campaigns, tempting with supposedly exceptional bargains. Many consumers may be strongly tempted to celebrate on credit and finance the purchase of gifts, a New Year’s Eve party or a winter trip with a borrowing.

In the run-up to Christmas and the New Year, we are particularly busy, so we are anxious to get everything done as quickly as possible. Unfortunately, a fast borrowing usually means an expensive one. A good example is the credit card market. On the market today there are not only classic credit cards the use of which is still quite expensive while granting of such a card involves a thorough examination of the consumer’s creditworthiness. Those looking for quick cash are increasingly offered special credit cards from lending institutions which are a very expensive form of borrowing money.

- The excitement of shopping will pass and the loan instalments will remain a burden on the household. I urge consumers to consider, before taking a borrowing or a loan, if it is really necessary and if the decision to borrow money is well thought out, calculated and planned - stresses the President of UOKiK, Tomasz Chróstny.

A time of consumer spending is a time of profit for businesses. Lenders are preparing carefully for this period. Therefore, beware of the different terms of financing purchases and all the costs associated with it - first of all, you should know that:

• Borrowing money costs money. We should especially avoid borrowing money just to “take advantage of a unique opportunity.” Unfortunately, then we may overpay doubly: with our wallets and dissatisfaction with the purchase.
• Watch out for deferred payments. Marketers are well aware that deferred payment increases the propensity to buy. By choosing to access instant loan, you voluntarily expose yourself to a greater risk of buying an unnecessary item that you will ultimately regret buying.
• If additional services are offered together with the loan, e.g. insurance, medical care - make sure that such a package is really necessary and that the conclusion of an additional agreement is necessary to receive special loan terms. If this is the case, the loan agreement should clearly indicate this. The cost of such ancillary agreements may be very high. If the loan agreement does not stipulate that the use of an ancillary service is necessary, you may not conclude it.
• Be careful if a lender offers you another solution, such as a credit card, instead of a loan. A credit card should facilitate payments (it is a payment instrument) - however, it happens that the costs associated with such a loan are much higher than those associated with an ordinary loan or cash borrowing or a loan for the purchase of goods and services.
• Beware of non-standard financial products. If, instead of a loan, an entrepreneur offers you to buy everyday items, such as household appliances that you own, and then lease them. Check the cost of such a proposal and compare it with the cost of a borrowing or a loan.

Remember, if after taking the loan you realise that you don’t need it after all or the terms of the consumer loan agreement are unfavourable, such as involving too much cost, you can withdraw from such an agreement within 14 days. At the same time, make sure that the withdrawal from the loan agreement is also effective for an additional agreement, such as insurance or a medical package.

The President of UOKiK has been constantly monitoring the activities and practices of entrepreneurs. In the case of practices that violate the collective interests of consumers, he may impose a fine of up to 10 percent of turnover on a business.

Consumer Support:

Consumer Helpline: 801 440 220 or 222 66 76 76
E-mail: [SCODE]cG9yYWR5QGRsYWtvbnN1bWVudG93LnBs[ECODE]
Consumer Ombudsmen – in your town or district