A credit broker is a branch of business in Austria that deals with the commercial brokerage of loans to future borrowers. Since the granting or brokering of loans is a sensitive business, the business of the credit broker in Austria is regulated.
If the future borrower is also a consumer (consumer), then even more regulations worthy of protection apply to them.
What is in the loan brokerage contract?
A credit brokerage contract regulates the rules and obligations of the credit broker and the potential borrower. The following positions are usually included in the loan brokerage contract:
- Definition of the loan to be brokered
- Regulation of the agent’s commission claims
- Time limit and exclusivity of the intermediary
- Other regulations, such as data protection, etc.
Commission for the credit intermediary
Since the credit intermediary does not grant the credit directly, but only mediates it, the intermediary receives a commission for his work. How much this loan brokerage fee is up to negotiation. This can be a lump sum or a certain percentage of the loan amount itself.
In Austria, it is the case that a commission for the loan brokerage only takes place if a loan was actually brokered. No commission may be requested only for the order itself!
Duration of a loan brokerage
In Austria, it is legally regulated that a loan placement may not take longer than 4 weeks. If no conclusion has been made by this point in time, credit mediation is no longer valid.
Looking for a credit broker – how do I find a reputable credit broker?
Here are 5 tips for a successful loan brokerage in Austria. Don’t be ripped off!
- A credit broker never works for free. First, get offers yourself and compare these loan offers. To compare loan offers, you need to compare the effective interest rate of the loan offers. This should be as low as possible. If you already have offered yourself, you can offer the credit broker additional offers. If these are actually better for you, you can accept the offer of the credit intermediary.
- Read the agency contract and other contracts carefully! Do not sign anything without understanding it!
- If you are already close to over-indebtedness, look for debt counseling – a credit intermediary cannot help you here either and may make things worse.
- You only have to pay a commission if the credit broker has actually secured a loan for you, which you also sign. In Austria, credit intermediaries may only collect commissions for the successful brokering of loans.
- If the conditions of the loan brokerage contract have not been met, you do not have to pay any commission. Don’t be put under pressure here!