The Importance of Contact Information in a Loan Relationship

Abstract

The Civil Code of Georgia offers norms regulating credit relations. In Georgia, the loan relationship is actively used in the relationship between the customer and the credit organization. Many disorders occur in this process of this relationship. However, the loan relationship is characterized by many features, so it is important to correctly define what ethical obligations any credit organization may have to the consumer and how it should be regulated at the legislative level. While talking about ethical obligations, we should first of all consider the „Code of Ethics for Credit Removal by Financial Institutions”approved by the President of the National Bank of Georgia N 14/04, which is the latest legislative change in the norms governing credit relations. One of the most important components of a loan relationship is the proper use of contact information by financial institutions. Failure to use this information in practice could result in significant harm to the borrower. This article will discuss the most recent legislative changes in the regulatory norms of the loan relationship and it will discuss in detail what problem can be solved by the use of correct methods of communication by financial institutions. However, the importance of correctly identifying contact information in a loan relationship is considered as a problem and ways to solve it will be suggested.