As of today all advertisements about loans must state the warning: “Caution! Borrowing money costs money”(in Dutch: ‘Let op: Geldlenen kost geld’). This rule applies to television, radio, internet and printed media.
The mandatory warning for loan advertisements is one of the measures taken by the Dutch government to handle the increasing problems related to debts.
The Dutch Financial Markets Authority (AFM) has drawn up guidelines for the exact manner in which the warning must be included in advertisements, see www.afm.nl/kredietwaarschuwing. For example, in printed advertisements the warning has to be depicted across the full width with a minimum height of 10% of the advertisement (including the warning).
The new rule applies to all advertisements for loans other than mortgages. Strangely enough, the warning also has to be included in advertisements for loans with an interest rate of 0%. According to the definition of the Dutch Financial Supervision Act (Wft) an interest rate of 0% is to be considered a loan or a credit. And so, according to the AFM, the warning must be included. I don’t agree with the opinion of the AFM. It is rather strange that one has to mention that borrowing money costs money if that is not the case. That is misleading. Several shareholders are now trying to negotiate on this issue with the AFM. Let’s hope that the mandatory inclusion of the warning for loan advertisement with an 0% interest rate will soon be past.
Kim Braber
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office Emerald House Jozef Israëlskade 48-G Amsterdam, the Netherlands t +31 (0)20 - 305 3066 www.hoogenhaak.nl |
post PO Box 76780 1070 KB Amsterdam e info@hoogenhaak.nl f +31 (0)20 - 305 3069 chamber of commerce 34314579 |
As of today all advertisements about loans must state the warning: “Caution! Borrowing money costs money”(in Dutch: ‘Let op: Geldlenen kost geld’). This rule applies to television, radio, internet and printed media.
The mandatory warning for loan advertisements is one of the measures taken by the Dutch government to handle the increasing problems related to debts.
The Dutch Financial Markets Authority (AFM) has drawn up guidelines for the exact manner in which the warning must be included in advertisements, see www.afm.nl/kredietwaarschuwing. For example, in printed advertisements the warning has to be depicted across the full width with a minimum height of 10% of the advertisement (including the warning).
The new rule applies to all advertisements for loans other than mortgages. Strangely enough, the warning also has to be included in advertisements for loans with an interest rate of 0%. According to the definition of the Dutch Financial Supervision Act (Wft) an interest rate of 0% is to be considered a loan or a credit. And so, according to the AFM, the warning must be included. I don’t agree with the opinion of the AFM. It is rather strange that one has to mention that borrowing money costs money if that is not the case. That is misleading. Several shareholders are now trying to negotiate on this issue with the AFM. Let’s hope that the mandatory inclusion of the warning for loan advertisement with an 0% interest rate will soon be past.
Kim Braber