ECCI (Standard European Consumer Credit Information)

Meaning and Definition

SECCI stands for Standard European Consumer Credit Information. It is a standardized document provided by lenders to borrowers in the European Union (EU) to provide clear and transparent information about the key terms and conditions of a consumer credit agreement. The SECCI includes important details such as the loan amount, interest rate, total cost of credit, repayment schedule, and any additional fees or charges. It allows borrowers to compare different credit offers and make informed decisions.

Why it is important to know

SECCI is important for borrowers as it ensures transparency and helps them understand the key features of a credit agreement. It allows borrowers to compare offers from different lenders and assess the affordability and suitability of the credit product. By providing standardized information, the SECCI promotes consumer protection and empowers borrowers to make well-informed choices.

Example in car finance

Suppose an individual is considering a car finance loan from a lender in the European Union. The lender provides them with a SECCI document that outlines the key terms and conditions of the loan. The SECCI includes details such as the loan amount, annual percentage rate (APR), repayment schedule, and any additional fees. The borrower reviews the SECCI to understand the total cost of credit, monthly repayments, and other important information. This helps them compare the offer with other lenders and make an informed decision about the car finance loan.