In connection with the adoption of the Consumer Credit Act, several questions have arisen which have significant implications for entities engaged in electronic commerce. Online traders may find themselves in a situation where, according to the definition in the Act, their activity fulfils the characteristics of intermediation of consumer credit, even though that is not their intention. In such cases, it is necessary to ensure compliance with all the conditions newly established for intermediation under the Consumer Credit Act, including obtaining authorisation for this activity, or alternatively to modify their activity so that the regulation does not apply to them. Consumer credit may be intermediated in particular as an independent intermediary, a tied agent and an intermediary of tied consumer credit.

We remind that pursuant to the provisions of Section 3(1)(b) of the Consumer Credit Act, intermediation of consumer credit means, inter alia, merely offering the possibility of concluding a consumer credit agreement or carrying out preparatory work directed towards concluding a consumer credit agreement or providing recommendations which could lead to the conclusion of a consumer credit agreement. Typically, this may concern situations in the operation of e-shops which offer consumers payment of the price of goods or services by means of credit. The regulation of the new Act does not apply to the mere provision of general information about consumer credit products provided that the purpose of such activity is not to assist in the conclusion or performance of a consumer credit agreement (so-called tipping). We dealt with the difference between so-called tipping and intermediation in more detail in Legal Circular No. 1/2017.

If a trader intermediates consumer credits only for one creditor, registration in the register of the Czech National Bank as a tied agent or intermediary of tied consumer credit is sufficient. If an entrepreneur wishes to intermediate consumer credits for multiple creditors (credit companies), he must apply for authorisation to be an independent intermediary. An independent intermediary must satisfy more conditions than a tied agent, but as already mentioned, is not limited in the number of credit providers for whom he may intermediate the provision of credit.

From the perspective of online traders, it may also be important to know whether the entity for which they intermediate the conclusion of credit agreements is actually authorised to provide consumer credits. Information about registered entities which are authorised to conduct business in the field of consumer credit can be found at this address, under the section “Providers and intermediaries of consumer credit”.

In this context, it is appropriate to state in conclusion that the new regulation has significantly reduced the number of all entities doing business in this field.

Alžbeta Hudáková

Mašek, Kočí, Aujezdský Law Office www.e-Advokacie.cz – on-line legal advisory services

This text was originally prepared by Mašek, Kočí, Aujezdský Law Office in cooperation with the Association for Electronic Commerce (APEK) as Legal Circular No. 05/2018 intended for members of this association.

This text was translated from Czech to English using an AI translator.