FSMA Kredietbemiddeling cheat sheet

A credit intermediary is a natural or legal person who does not act as lender and who, for remuneration, presents or proposes credit agreements, assists consumers in preparatory steps, or concludes credit agreements on behalf of a lender.

Registration with the FSMA is a prior condition: the intermediary may only act after being entered in the register of credit intermediaries; acting without registration is prohibited and sanctionable.

The FSMA register is public and distinguishes categories (e.g. brokers and tied/affiliated agents); a consumer can verify status, category and any restrictions before dealing.

Registration conditions typically include professional competence, reliability (no relevant criminal or bankruptcy disqualification), professional liability insurance, and a minimum paid-up capital or equivalent guarantee depending on the category.

The FSMA supervises ongoing compliance: it may request information, conduct on-site inspections, impose administrative fines, suspend or withdraw registration, and publish sanctions.

Intermediaries must notify the FSMA of changes to registered data (address, category, agents, directors) within the period set by regulation; failure to update can itself be a breach.

Tied agents act in the name and for the account of one lender and are registered under that lender, whereas brokers may work with several lenders; the applicable disclosure duties differ accordingly.

Mortgage credit intermediaries are subject to a separate registration regime (register of mortgage credit intermediaries) with additional competence and insurance requirements; consumer credit and mortgage credit registers are distinct.

Cross-border activity: an intermediary registered in Belgium who wishes to operate in another EEA state, or a foreign EEA intermediary active in Belgium, must follow the applicable notification/freedom-of-services procedure; the home-state registration is the starting point.

Consumer credit covers credit granted to a consumer (natural person acting outside professional activity) below the regulatory threshold amounts; credit above the threshold or for professional purposes falls outside the consumer-credit rules.

A credit agreement is a distance/off-premises agreement when concluded without the simultaneous physical presence of the parties (distance) or during an unsolicited visit away from business premises; such agreements carry an extended withdrawal right.

Open-end credit (revolving credit, credit cards, overdraft facilities) has no fixed term or amount and can be terminated by either party; the consumer benefits from a statutory right of early repayment and termination rules.

Linked credit agreements exist where the credit serves to finance a specific good or service and the lender and supplier cooperate; the consumer may invoke remedies against the lender when the supplier fails to perform.

Hire-purchase and leasing with an option to buy are credit agreements when they include a deferred payment or financing element; the total cost of credit must be disclosed.

The annual percentage rate of charge (APR) expresses the total cost of credit as an annual percentage, including interest, fees and compulsory insurance; it is the key comparison figure across offers.

The total amount payable by the consumer equals the amount of credit plus the total cost of credit; the total cost of credit equals all interest, commissions, taxes and charges the consumer must pay.

The pre-contractual information (standard European Consumer Credit Information form) must state the type of credit, amount, duration, APR, total amount payable, number and amount of instalments, and the right of withdrawal.

Early repayment: the consumer may repay early at any time; the lender may claim compensation only within the limits set by law (capped and excluded for certain open-end credits).

Pre-contractual information must be provided on paper or another durable medium in good time before the consumer is bound, using the standard information form; the consumer must be able to compare offers.

The credit intermediary must disclose, before any service, its identity, registered status and category, and whether it is tied to one or more lenders or works as a broker; remuneration must be disclosed.

Where the intermediary charges a fee to the consumer, the amount and the basis of calculation must be stated in the pre-contractual information and agreed in writing before the service begins.

Advice (if offered) requires a statement of recommendation explaining why the proposed agreement suits the consumer's needs and financial situation; the recommendation must be based on a sufficient range of products.

A creditworthiness assessment is mandatory before granting credit; the consumer must provide accurate information, and the lender must assess ability to repay based on income, expenses and existing obligations.

The consumer has a 14-calendar-day right of withdrawal for consumer credit without penalty, starting from the day the agreement is concluded (or from receipt of the contractual terms and conditions if later).

Fair treatment and conflicts of interest: the intermediary must act honestly, fairly and professionally, avoid misleading omissions, and manage conflicts arising from commission structures.

Records: the intermediary must keep records of the information provided, the advice given and the agreements concluded, and make them available to the FSMA on request.

Complaints handling: an accessible internal complaints procedure must exist, and the consumer must be informed of the possibility to escalate to the FSMA or the ombudsman service for financial services.

Advertising for consumer credit must be fair, clear and not misleading; it may not create a false impression about the cost, the nature of the product, or the identity and status of the intermediary.

Any advertisement stating an interest rate, an APR or a cost figure must also state the APR, the total amount of credit, the duration and, where applicable, the total amount payable and the instalments.

Mandatory warnings: advertisements offering credit must include the warning that borrowing money costs money and that the APR reflects the total cost; promotional '0%' claims must disclose the conditions.

Prohibited practices include unsolicited credit offers implying automatic granting, promises of credit regardless of solvency, and use of terms such as 'free credit' where costs exist.

Warning signs of fraud: unsolicited contact (phone, SMS, social media) offering guaranteed or very fast credit, requests for an upfront fee to 'unlock' a loan, and pressure to act immediately.

Warning signs of fraud: requests for personal or banking data (card numbers, PIN, e-banking codes) before any agreement, use of non-official e-mail domains or cloned websites, and offers to transfer money on behalf of the 'lender'.

Verification rule: check the intermediary and lender in the FSMA register, verify the official website and contact details independently, and never pay a fee before receiving the signed agreement and funds.

If fraud is suspected, the consumer should stop all payments, not sign anything, keep evidence, and report to the FSMA, the police and the bank; early reporting limits financial loss.

The FSMA publishes warnings and blacklists of unauthorized intermediaries and fraudulent websites; consulting these lists before responding to an offer is a standard precaution.