If a credit contract is found to be unwise, the credit provider cannot enforce the agreement and the consumer`s obligations are removed. In this document, credit is referred to as a «double-edged sword» because the power between consumers and credit providers is «significantly unbalanced» due to poor levels of consumer education and knowledge of consumer rights and is unable to enforce them through negotiation or legal action: a credit facility is an agreement in which a credit provider provides goods or services. or pays a sum to the consumer. The consumer`s obligation to pay the price or refund the money is set aside, for which the consumer pays interest and fees. For example, a credit facility is the lender that provides goods or services (for example. B in the form of a contract to buy in a temperament) or who pays the money (for example. B in the form of a secured or unsecured cash loan, overdraft facility, deposit or mortgage). The lender is often referred to as a «creditor,» especially when steps are taken to recover money against the consumer. The debt verification procedure may well be used by smart consumers to delay or avoid payments under a credit contract. This is because there are many legislation that limits the rights of credit providers to enforce their claims. However, if the consumer is under an audited credit contract, the credit provider can provide the consumer, the debt advisor and the NCR with the end of the audit.
This notification can be made at least 60 days after the date of the debt review request, i.e. if the debt review process takes too long. The credit provider can then take steps to enforce the agreement. The court then has the power to order the resumption of the debt review, if any. A consumer`s request for a debt review has serious implications for their creditworthiness and for future agreements. It will be extremely difficult for consumers to find the money to pay the introductory fees in advance at a time when they are borrowing, precisely because they need cash.