FSMA Kredietbemiddeling key terms

A natural or legal person who, for remuneration, presents or proposes credit agreements to consumers, assists them in preparatory work, or concludes such agreements on behalf of a lender.

A credit intermediary who acts on behalf of one or more lenders and may conclude credit agreements with consumers in the lender's name and for the lender's account.

The mandatory entry on the register maintained by the Financial Services and Markets Authority that allows a person to lawfully act as a credit intermediary in Belgium.

Removal of an intermediary from the FSMA register, which can follow a serious breach, insolvency or loss of professional reliability and ends the lawful activity.

The professional reliability condition assessed on the basis of criminal record, past bankruptcies, supervisory sanctions and integrity of the persons managing the intermediary.

The minimum knowledge and experience in credit products and consumer protection rules that an intermediary and its staff must demonstrate to be registered.

Ongoing training that registered intermediaries must follow to keep their knowledge of credit products, legislation and conduct rules up to date.

Written authority given by a lender allowing a credit agent to sign credit agreements in the lender's name, defining the scope and limits of that authority.

Insurance covering the intermediary's liability for professional errors, usually required or strongly recommended as a condition for registration and sound practice.

Credit granted to a natural person for private purposes, covering amounts and forms regulated by consumer credit law rather than mortgage credit.

Credit secured by a mortgage or other real right over immovable property, subject to its own rules and registration duties distinct from consumer credit.

An open-ended credit facility, such as a credit card or revolving credit line, where the consumer can draw funds repeatedly up to an agreed limit.

A credit agreement in which the lender finances a purchase or service and the consumer repays the amount plus interest in fixed instalments over a set term.

A leasing arrangement where the consumer pays instalments for the use of goods and may become owner at the end, often treated as a credit agreement.

A sale in which the price is paid in instalments and ownership may pass only after full payment, functioning economically as a form of consumer credit.

The total cost of credit expressed as an annual percentage rate, including interest, fees and other charges, allowing consumers to compare offers.

The interest rate charged by the lender on the outstanding credit amount, which may be fixed, variable or revisable according to the contract.

An interest rate that changes over the life of the agreement according to a reference index and contractual rules on revision frequency and caps.

A schedule showing each repayment date, the principal and interest components and the remaining balance, provided so the consumer understands the repayment structure.

The agreed schedule and method by which the consumer repays capital and interest, including instalment amounts, due dates and early repayment possibilities.

Repayment of all or part of the outstanding credit before the contractual due date, which may entitle the consumer to a reduction of interest charges.

Standardised information the intermediary must give the consumer before a credit agreement is concluded, enabling an informed comparison of offers.

The assessment of whether the consumer can reasonably be expected to repay the credit, based on income, expenses and credit history data.

A situation where granting credit would create a burden the consumer is unlikely to bear, which the intermediary must avoid by refusing unsuitable agreements.

The obligation to recommend credit agreements suited to the consumer's needs, financial situation and objectives, explaining the reasons for the recommendation.

The duty to provide clear, fair and non-misleading information about products, costs, risks and the intermediary's status and remuneration before and during the relationship.

Remuneration paid by a lender to an intermediary for arranging credit, which must be disclosed to the consumer to ensure transparency about conflicts of interest.

A situation where the intermediary's financial or personal interest may influence its advice, requiring disclosure and management to protect the consumer.

The general duty of care requiring the intermediary to act honestly, professionally and in the consumer's best interest throughout the credit relationship.

The consumer's right to withdraw from a credit agreement within a set period after signing, without giving reasons and with limited cost consequences.

Any commercial communication promoting credit that must be fair, clear and not misleading, with mandatory cost information when figures are mentioned.

Commercial communication that creates a false impression about costs, conditions or benefits of credit, prohibited because it distorts the consumer's decision.

Indicators of possible credit fraud, such as upfront fee requests, unregistered lenders, pressure tactics or unusually favourable rates, prompting verification.

Deceptive schemes in which fraudsters pose as lenders or intermediaries to obtain advance payments or personal data from consumers seeking credit.

Fraudulent emails, messages or websites impersonating a lender to steal login credentials, identity data or payments from consumers.

A scam requiring the consumer to pay a fee or deposit before receiving a promised loan that never materialises, a classic warning sign in credit offers.

Concluding a credit agreement by phone, internet or mail without simultaneous physical presence, triggering extra information and withdrawal rights.