Credit Advisor – Who?

Have you ever thought about getting a loan or a loan? What did you do then Did you go directly to the Institution, search on the Internet, or perhaps use the help of a Credit Advisor? Exactly. Who is a Credit Advisor and how

Legal requirements to be met by a credit advisor

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The credit advisor has different names – Credit intermediary, Agent, Broker. At the very end, it is always about the same thing, i.e. a person who will expertly advise us on what financing in a particular situation will be best for us. Once, the profession of a Credit Advisor was not legally regulated in any way. However, along with the increase of its role and universality on the market, actions were taken to certify credit intermediaries.

This certification takes place under two fundamental laws for the money lending market – the Consumer Credit Act and the Mortgage Credit Act. The former says that every Credit Advisor who wants to be an Intermediary and intermediary in the sale of consumer loans and borrowings must have an entry in Section II of the Intermediaries Register kept by the Polish Financial Supervision Authority.

To receive such an entry, of course, one needs to run a business consisting in brokering and submit an appropriate application to the PFSA. The same applies to the Intermediary who would like to mediate in the conclusion of mortgage agreements. However, there are two differences. The first – the entry is made in Section I of the register. Second – in order to become a mortgage broker, you must pass the exam, which consists of 50 questions, of which you must answer 35 successfully to pass it successfully. University graduates in economics and law are excluded from the exam.

What does regulation mean for the consumer?

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Both the Act on consumer credit and mortgage treat the clear about the need for the Credit Advisor to fulfill the information obligation throughout the entire credit process. One of the most important documents in this area is the so-called Information Form. It is on this form that the credit advisor is required to provide us with the full range of information regarding the loan or loan offer we are requesting.

Therefore, a credit advisor cannot absolutely hide information about the basic parameters of the loan from us, what is more, he must explain it clearly to us and provide it in a well-established form. Therefore, when deciding to use the services of a Credit Advisor, we should check whether he has an entry in the registers of the Polish Financial Supervision Authority, i.e. whether he performs his activities legally. The broker, of course, must have an entry in the field of loans mediated by sales – so if he sells only mortgage loans, an entry in Section I is sufficient.

What does a credit counselor do

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We already know what elements must be met to say that the Agent acts legally. So who is the Broker, also known as the Agent or Credit Advisor? This is none other than a person who has extensive knowledge of financial products available on the market, but also the authority of many financial institutions to sell these products. Therefore, it can quickly and reliably help the customer in choosing the right product.

How does it help? Most often through interview. Therefore, the advisor asks the client about his need – that is, how much money he needs, for what period and for what he would like to spend the money, which is what he wants to achieve. Next, the Agent needs to know the client’s financial situation, i.e. how much he earns, how much he spends, how many dependents he has and what obligations he has. With this information, a credit advisor will be able to qualify the client for some product category and then choose some type of institution to which to apply.

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