Did you know that, in some cases, you may be able to cancel your credit agreement if the product you purchased is defective or the sales contract is invalidated?
Today, it’s common to rely on credit to buy consumer goods — whether a household appliance, medical device, or a car. Often, this financing is arranged through financial institutions or companies partnered with the seller.
But what happens if the product is defective, not as advertised, or the purchase contract is cancelled?
Under Decree-Law no. 133/2009, which transposes the EU Consumer Credit Directive into Portuguese law, consumers may request the cancellation of the linked credit agreement — meaning the credit that was directly associated with the purchase of that good.
If the legal conditions are met and the process is correctly followed, the credit agreement can be terminated, and the amounts already paid can even be refunded.
This may apply in situations such as:
- The purchase of hearing aids, vehicles, or goods valued under €79,000;
- When the product does not match what was contracted;
- When some defects or omissions affect its use;
- Or when the sales contract is annulled for other legal reasons.
Each case must be assessed individually. VCA’s Dispute Resolution team has experience assisting consumers in these matters and can help determine whether your credit agreement can be cancelled.
Dispute Resolution Department
Vera Chalaça | Sandrine Ribeiro
