Among the personal loans, there is a category that has a special regulation: the so-called consumer credit regulated by the Law 7 / 1995 of March 23, Consumer Credit .

This Act applies to contracts where a natural or legal person in the exercise of its business, profession or trade, (a businessman), grants or promises to grant credit to a consumer in the form of deferred payment, loan, credit or equivalent means of financing to meet individual needs regardless of their business or professional activity and the amount is between 150 and 20,000 euros.
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From 1 January 2006 the social pension replacement. Can be requested if you are over 65 years and income is less than the minimum established by law.

Welfare benefits are purely economic treatment of care that is delivered, upon submission of appropriate application, citizens who are at least 65 years of age and have no any kind of income or have an income lower than the limits annually by law. The liquidation is independent then the payment of social security contributions.
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The expenditures on social security provided by the last financial maneuver. Let us see what are the most important.

The budget presented by the government on the “urgent measures for financial stabilization” is divided into four titles. The first, called “provisions for the control and reduction of public expenditure”, contains, in Chapter III, the proposals on the “containment and rationalization of expenditure on public employment, health, social security, educational organization. Competition of local authorities to financial stabilization. ” In particular, Article. 18 of Decree – Law shows the “expenditures on social security.” By focusing on the changes most relevant, we note that:
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The expenditures on social security provided by the recently approved budget package.

The law of July 15, 2011, No 111 conversion of the Decree – Law of July 6, 2011, No 98, on “urgent measures for financial stabilization”, published in Official Gazette No. 164 of July 16, 2011, shows, art. 18, “expenditures on social security.” The most significant are:

Automatic revaluation pensions – for the biennium 2012 – 2013, retirement benefits more than five times the minimum INPS (approximately EUR 2,380 gross per month), the automatic revaluation of pensions is not granted, for the range of average pensions, ranging from five times (approximately EUR 2,380 gross per month) and three times (approximately EUR 1,428 gross per month), the index of automatic revaluation of the pension is applied for the said period, the extent of 70%. For pensions of less than three times the minimum INPS (1,428 euros gross per month), the index is applied fully automatic revaluation (paragraph 3);
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Assignment of salary

The sale of the fifth is a form of consumer credit does not aim (and not directed to purchase specific goods or services), issued in response to the voluntary transfer of a portion of their monthly salary. In essence, the employee (donor) shall negotiate with third / finance company (transferee) the transfer to the last-in-chief of his right to the employer (sold) to receive a share of their salary, up to the fifth same salary.

The sale of the fifth – originally created for employees of public bodies, central governments and other entities – can be applied today, even by all the pensioners and private employees. Normally has a duration between 2 and 10 years, in general, the preferred term for the payment of 60 or 120 monthly payments (5 or 10 years).
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The consumer credit contracts must be made in writing and the consumer must receive a copy of the contract, on pain of nullity of the contract .

It is important to verify that the contract contains at least the following elements: a) amount and manner of financing; b) the number, amount and maturity of the installments c) APR and arrangements for any change; d) charges not included in the APR, and ) guarantees required f) insurance is required and not included in the APR.

The consumer credit contracts that have as their object the purchase of certain goods or services also include: a) an analytical description of the goods and services, b) indication of the purchase price in cash, the price fixed by the contract, the amount of the deposit; c) the conditions for the transfer of property rights, in cases where this is not immediate.
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The APR should not be confused with the percentage rate (TEG).
The TEG provides useful information to determine if cost conditions (costs, interest and charges of various kinds) the loans charged by banks and financial intermediaries have usurious character. The credit operations for this purpose are divided into homogeneous categories (categories of consumer loans – loans for, rotating or revolving loans, personal loans, an assignment of salary – and even other types of credit relationships), and all ‘internal single homogeneous categories, broken down by amount classes.

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The APR is essentially an index of the total cost of credit to the consumer and is the main instrument of transparency in credit consumption. It is defined in legislation such as the rate which equates, on an annual basis, the present value of all financial obligations (loans, repayments and charges), future or existing lender and the borrower.

The APR expresses – in percentage terms than the paid capital – the actual total cost of credit to the consumer, including various charges and more than the rate of interest that the consumer should pay to banks and financial intermediaries to decide when to conclude the contract (eg: the costs of collection of repayments and collection of installments, if established by the lender the cost of mediation conducted by a third, if necessary for obtaining credit). Some costs are not included in the APR, for example, the expenditure on any non-compliance, the costs for the transfer of funds, the cost of insurance or guarantees, except those imposed by the creditor, to cover specific events in the life of consumer, such as death, disability, unemployment.
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The credit scoring is a system used by banks and financial intermediaries to assess the solvency of the consumer. The system combines a range of information together in order to achieve a score of acceptance (by the party lender) about the credit risk of the applicant in a given period of time. Depending on the score, the broker gets useful information to accept or reject the funding, to determine the extent of funding and interest rate.
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The installment is the amount the consumer pays the bank or financial intermediary for the return of the loan. It consists of a share capital, by way of loan repayments, and share interests, owing to the application of the interest rate applied. Reimbursement is the second time intervals determined by the parties, as a rule payments are monthly. The payment of the installment is an important event in the pattern of relationships between banks and consumers.

Failure to comply with deadlines for determining the rate charged to the consumer increased burden for the charging of interest on late payments, whose size must be recorded in the pre-contract and the contract. Moreover, according to general rules of contracts, bank and financial intermediaries may rescind the contract, an event that requests immediate payment of outstanding principal.
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