Prohibition on tie-in sales BES

As in the Netherlands, in the BES there is also a prohibition on tie-in sales (section 5:16 of the Financial Markets BES Islands Act). In brief, it states that when concluding a credit agreement the provider of credit is not allowed to force an agreement for an additional financial product or service on the client. There are some exceptions, two of them being:

  • If a client has the right to choose the company with which he/she concludes an agreement for the additional product or service;
  • If a client can be compelled to maintain a current account into which the payments required under the credit agreement have to be paid. However, the client may not incur unreasonable costs as a result. It is not permitted to demand that this current account regularly receives transferred amounts representing salary or pension (making the account a salary account).

If an agreement has been concluded that contravenes this prohibition, the agreement is capable of annulment.