Consumer Credit Regulations, 2010

L.N. 330 of 2010

CONSUMER AFFAIRS ACT

(CAP. 378)

Consumer Credit Regulations, 2010

IN exercise of the powers conferred upon him by article 7 of the

Consumer Affairs Act, Cap. 378, the Minister responsible for

Consumer Affairs, after consultation with the Consumer Affairs

Council, has made the following regulations:-

PART 1

PRELIMINARY

(1)

The title of these regulations is the Consumer

Credit Regulations, 2010.

(2) These regulations shall come into force on 1st October,

2010.

[Regulation 7]

STANDARD EUROPEAN CONSUMER CREDIT INFORMATION

1. Identity and contact details of the creditor/credit intermediary

............Creditor

[Identity]

Address

[Geographical address to be used by the

Telephone Number (*)

E-mail address (*)

consumer]

Fax Number (*)

Web address (*)

.............If applicable

[Identity]

Credit Intermediary

[Geographical address to be used by the

Address

Telephone Number (*)

consumer]

E-mail address (*)

Fax Number (*)

Web address (*)

(*) This information is optional for the creditor.

Wherever "if applicable" is indicated, the creditor must fill in the box if the

information is relevant to the credit product or delete the respective information or

the entire row if the information is not relevant for the type of credit considered.

Indications between square brackets provide explanations for the creditor and

must be replaced with the corresponding information.

2. Description of the main features of the credit product

The type of credit

The total amount of credit

This means the ceiling or the total sums

made available under the credit agreement

The conditions governing the drawdown

This means how and when you will obtain the money

The duration of the credit agreement

Instalments and, where appropriate, the order in

You will have to pay the following

in which the instalments will be allocated

[The amount, number and frequency of payments to

be made by the consumer]

Interest and/or charges will be payable in the

following manner

The total amount you will have to pay

[Sum of total amount of credit and total cost

This means the amount of borrowed capital plus interest of credit]

and possible costs related to your credit.

If applicable

The credit is granted in the form of a deferred payment

for a good or service or is linked to the supply of specific

goods or the provision of a service

Name of good/service

Cash price

If applicable

Sureties required

[Kind of Sureties]

This is a description of the security to be provided by you

in relation to the credit agreement.

If applicable

Repayments do not give rise to immediate amortisation

of the capital.

3. Costs of the credit

The borrowing rate or, if applicable, different borrowing [ %

rates which apply to the credit agreement

- fixed or,

- variable (with the index or reference rate

applicable to the initial borrowing rate),

- periods],

Annual Percentage Rate of Charge (APR)

[ % A representative example mentioning all the

This is the total cost expressed as an annual percentage assumptions used for calculating the rate to be set

of the total amount of credit.

out here]

The APR is there to help you compare different offers.

Is it compulsory, in order to obtain the credit or to obtain it

on the terms and conditions marketed, to take out

- an insurance policy securing the credit, or

Yes/No [if yes specify the kind of insurance]

- another ancillary service contract

Yes/No [if yes specify the kind of ancillary

If the costs of these services are not known by the creditor service]

they are not included in the APR.

Related Costs

If applicable

Maintaining one or more accounts is required for

recording both payments transactions and drawdowns

If applicable

Amount of costs for using a specific means of payment

(e.g. credit card)

If applicable

Any other costs deriving from the credit agreement

If applicable

Conditions under which the above mentioned costs

related to the credit agreement can be changed

If applicable

Obligation to pay notarial fees

Costs in the case of late payments

Missing payments could have severe consequences for

You will be charged [...... (applicable interest rate

you (e.g. forced sale) and make obtaining credit more

and arrangements for its adjustment and, where

difficult.

applicable,

default

charges)]

for

missing

payments.

4. Other important legal aspects

Right of Withdrawal

Yes/No

You have the right to withdraw from the credit agreement

within a period of 14 running days.

Early Repayment

You have the right to repay the credit early at any time in

full or partially.

If applicable

The creditor is entitled to compensation in the case of [Determination of the compensation (calculation

early repayment.

method) in accordance with the provisions

implementing regulation 16 of the Consumer Credit

Regulations, 2010.

Consultation of a database

The creditor must inform you immediately and without

charge of the result of a consultation of a database, if a

credit application is rejected on the basis of such a

consultation. This does not apply if the provision of such

information is prohibited by European Community law or

is contrary to objectives of public policy or public

security.

Right to a draft agreement

You have the right, upon request, to obtain a copy of the

draft credit agreement free of charge. This provision does

not apply if the creditor is at the time of the request

unwilling to proceed to the conclusion of the credit

agreement with you.

If applicable

The period of time during which the creditor is bound by This information is valid from … until …

the pre-contractual information

If applicable

5. Additional information in the case of distance marketing of financial

services

(a) concerning the creditor

If applicable

Representative of the creditor in your Member State of

[Identity]

residence

Address

[Geographical address to be used by the

Telephone Number (*)

consumer]

E-mail address (*)

Fax Number (*)

Web address (*)

If applicable

Registration

[The trade register in which the creditor is entered

and his registration number or an equivalent means

of identification in that register]

If applicable

The supervisory authority

(b) concerning the credit agreement

If applicable

Exercise of the right of withdrawal

[Practical instructions for exercising the right of

withdrawal indicationg, inter alia, the period for

exercising the right, the address to which notification

of exercise of the right of withdrawal should be sent

and the consequences of non-exercise of that right]

The law taken by the creditor as a basis for the

establishment of relations with you before the conclusion

of the credit contract

If applicable

Clause stipulating the governing law applicable to the [Relevant Clause to be set out here]

credit agreement and/or the competent court

If applicable

Language regime

Information and contractual terms will be supplied in

[specific language]. With your consent, we intend to

communicate in [specific language/languages]

during the duration of the credit agreement.

(c) concerning redress

Existence of and access to out-of-court complaint and [Whether or not there is an out-of-court complaint

redress mechanism

and redress mechanism for the consumer who is

party to the distance contract and, if so, the methods

of access to it]

(*) This information is optional for the creditor.

These regulations implement the provisions of Directive

2008/48/EC of the European Parliament and of the Council of 23

April 2008 on credit agreements for consumers and repealing Council

Directive 87/102/EEC.

PART 2

DEFINITIONS

[Regulation 8]

EUROPEAN CONSUMER CREDIT INFORMATION FOR

(1)

overdrafts

(2)

debt conversion

1. Identity and contact details of the creditor/credit intermediary

............Creditor

[Identity]

Address

[Geographical address to be used by the

Telephone Number (*)

E-mail address (*)

consumer]

Fax Number (*)

Web address (*)

.............If applicable

[Identity]

Credit Intermediary

[Geographical address to be used by the

Address

Telephone Number (*)

consumer]

E-mail address (*)

Fax Number (*)

Web address (*)

(*) This information is optional for the creditor.

Wherever "if applicable" is indicated, the creditor must fill in the box if the

information is relevant to the credit product or delete the respective information or

the entire row if the information is not relevant for the type of credit considered.

Indications between square brackets provide explanations for the creditor and

must be replaced with the corresponding information.

2. Description of the main features of the credit product

The type of credit

The total amount of credit

This means the ceiling or the total sums

made available under the credit agreement

The duration of the credit agreement

If applicable

You may be requested to repay the amount of credit in full

on demand at any time.

3. Costs of the credit

The borrowing rate or, if applicable, different borrowing [ %

rates which apply to the credit agreement

- fixed or,

- variable (with the index or reference rate

applicable to the initial borrowing rate)]

If applicable

Annual Percentage Rate of Charge (APR)

This is the total cost expressed as an annual percentage of [ % A representative example mentioning all the

assumptions used for calculating the rate to be set

the total amount of credit.

out here]

The APR is there to help you compare different offers.

If applicable

Costs

[The costs applicable from the time the credit

If applicable

agreement is concluded]

The conditions under which those costs may be changed

Costs in the case of late payments

You will be charged [...... (applicable interest rate

and arrangements for its adjustment and, where

applicable, default charges)] for missing payments.

4. Other important legal aspects

Termination of the credit agreement

[The conditions and procedure for terminating the

credit agreement]

Consultation of a database

The creditor must inform you immediately and without

charge of the result of a consultation of a database, if a

credit application is rejected on the basis of such a

consultation. This does not apply if the provision of such

information is prohibited by European Community law or

is contrary to objectives of public policy or public security.

If applicable

The period of time during which the creditor is bound by This information is valid from … until …

the pre-contractual information

If applicable

5. Additional information to be given where the precontractual

information relates to a consumer credit for debt conversion.

Instalments and, where appropriate, the order in

You will have to pay the following

in which the instalments will be allocated

[Representative example of an instalment table

including the amount, number and frequency of

payments to be made by the consumer]

The total amount you will have to pay

Early Repayment

You have the right to repay the credit early at any time in

full or partially.

If applicable

The creditor is entitled to compensation in the case of [Determination of the compensation (calculation

early repayment.

method) in accordance with the provisions

implementing Regulation 16 of the Consumer Credit

Regulations, 2010]

If applicable

6. Additional information in the case of distance marketing of financial

services

(a) concerning the creditor

If applicable

Representative of the creditor in your Member State of

[Identity]

residence

Address

[Geographical address to be used by the

Telephone Number (*)

consumer]

E-mail address (*)

Fax Number (*)

Web address (*)

If applicable

Registration

[The trade register in which the creditor is entered

and his registration number or an equivalent means

of identification in that register]

If applicable

The supervisory authority

(b) concerning the credit agreement

Right of withdrawal

Yes/No

You have the right to withdraw from the credit agreement [Practical instructions for exercising the right of

within a period of 14 running days

withdrawal indicating, inter alia, the address to which

If applicable

notification of the exercise of withdrawal should be

Exercise of the right of withdrawal

sent and the consequences of non-exercise of that

right]

If applicable

The law taken by the creditor as a basis for the

establishment of relations with you before the conclusion

of the credit contract

If applicable

Clause stipulating the governing law applicable to the [Relevant Clause to be set out here]

credit agreement and/or the competent court

If applicable

Language regime

Information and contractual terms will be supplied in

[specific language]. With your consent, we intend to

communicate in [specific language/languages] during

the duration of the credit agreement.

(c) concerning redress

Existence of and access to out-of-court complaint and [Whether or not there is an out-of-court complaint

redress mechanism

and redress mechanism for the consumer who is party

to the distance contract and, if so, the methods of

access to it]

(*) This information is optional for the creditor.

For the purpose of these regulations:-

"Act" means the Consumer Affairs Act;

"annual percentage rate of charge" shall have the same meaning

assigned to it under regulation 21;

"borrowing rate" means the interest rate expressed as a fixed or

variable percentage applied on an annual basis to the amount of credit

drawn down;

"consumer" means a natural person who, in transactions covered

by these regulations, is acting for purposes which are outside his

trade, business or profession;

"creditor" means a natural or legal person who grants or

promises to grant credit in the course of his trade, business or

profession;

"credit agreement" means an agreement whereby a creditor

grants or promises to grant to a consumer credit in the form of a

deferred payment, loan or other similar financial accommodation,

except for agreements for the provision on a continuing basis of

services or for the supply of goods of the same kind, where the

consumer pays for such services or goods for the duration of their

provision by means of instalments;

"credit intermediary" means a natural or legal person who is not

acting as a creditor and who, in the course of his trade, business or

profession, for a fee, which may take a pecuniary form or any other

agreed form of financial consideration

(i)

presents or offers credit agreements to consumers;

(ii)

assists consumers by undertaking preparatory work

in respect of credit agreements other than as referred to in (i); or

(iii)

concludes credit agreements with consumers on

behalf of the creditor;

"the Director" means the Director of Consumer Affairs as

defined in the Act;

"durable medium" means any instrument which enables the

consumer to store information addressed personally to him in a way

accessible for future reference for a period of time adequate for the

purposes of the information and which allows the unchanged

reproduction of the information stored;

"fixed borrowing rate" means that the creditor and the consumer

agree in the credit agreement on one borrowing rate for the entire

duration of the credit agreement or on several borrowing rates for

partial periods using exclusively a fixed specific percentage. If not all

borrowing rates are determined in the credit agreement, the

borrowing rate shall be deemed to be fixed only for the partial periods

for which the borrowing rates are determined exclusively by a fixed

specific percentage agreed on the conclusion of the credit agreement;

"linked credit agreement" means a credit agreement where

(i)

the credit in question serves exclusively to finance

an agreement for the supply of specific goods or the provision

of a specific service; and

(ii)

those two agreements form, from an objective

point of view, a commercial unit.

For the purposes of this definition, a commercial unit shall be

deemed to exist where the supplier or service provider himself

finances the credit for the consumer or, if it is financed by a third

party, where the creditor uses the services of the supplier or service

provider in connection with the conclusion or preparation of the

credit agreement, or where the specific goods or the provision of a

specific service are explicitly specified in the credit agreement;

"Member State" has the same meaning assigned to it in the Act;

"Notary Public" has the same meaning assigned to it under

article 2(1) of the Notarial Profession and Notarial Archives Act;

"overdraft facility" means an explicit credit agreement whereby

a creditor makes available to a consumer funds which exceed the

current balance in the consumer’s current account;

"overrunning" means a tacitly accepted overdraft whereby a

creditor makes available to a consumer funds which exceed the

current balance in the consumer’s current account or the agreed

overdraft facility;

"total amount of credit" means the ceiling or the total sums

made available under a credit agreement;

"total amount payable by the consumer" means the sum of the

total amount of the credit and the total cost of the credit to the

consumer; and

"total cost of the credit to the consumer" means all the costs,

including interest, commissions, taxes, and any other kind of fees

which the consumer is required to pay in connection with the credit

agreement and which are known to the creditor, except for notarial

costs; costs in respect of ancillary services relating to the credit

agreement, in particular insurance premia, are also included if, in

addition, the conclusion of a service contract is compulsory in order

to obtain the credit or to obtain it on the terms and conditions

marketed.

PART 3

SCOPE AND APPLICATION

[Regulation 21]

The basic equation expressing the equivalence of drawdowns on the one

hand and repayments and charges on the other.

The basic equation, which establishes the annual percentage rate of charge

(APR), equates, on an annual basis, the total present value of drawdowns on the

one hand and the total present value of repayments and payments of charges on the

other hand, i.e.

where

is the APR,

is the number of the last drawdown,

is the number of a drawdown, thus 1 ≤ k ≤ m,

is the amount of drawdown k,

t k is the interval, expressed in years and fractions of a year, between the

date of the first drawdown and the date of each subsequent drawdown, thus t1 = 0 ,

is the number of the last repayment or payment of charges,

is the number of a repayment or payment of charges,

is the amount of a repayment or payment of charges,

S 1 is the interval, expressed in years and fractions of a year, between the

date of the first drawdown and the date of each repayment or payment of charges.

Remarks

(a)

The amounts paid by both parties at different times shall not

necessarily be equal and shall not necessarily be paid at equal intervals.

(b)

The starting date shall be that of the first drawdown.

(c)

Intervals between dates used in the calculations shall be

expressed in years or in fractions of a year. A year is presumed to have 365

days (or 366 days for leap years), 52 weeks or 12 equal months. An equal

month is presumed to have 30.41666 days (i.e. 365/12) regardless of whether

or not it is a leap year.

(d)

The result of the calculation shall be expressed with an accuracy

of at least one decimal place. If the figure at the following decimal place is

greater than or equal to 5, the figure at that particular decimal place shall be

increased by one.

(e)

The equation can be rewritten using a single sum and the

concept of flows (A k ), which will be positive or negative, in other words

either paid or received during periods 1 to k, expressed in years, i.e.

S being the present balance of flows. If the aim is to maintain the equivalence

of flows, the value will be zero.

II. Additional assumptions for the calculation of the annual percentage rate

of charge

(a)

if a credit agreement gives the consumer freedom of drawdown,

the total amount of credit shall be deemed to be drawn down immediately

and in full;

(b)

if a credit agreement provides different ways of drawdown with

different charges or borrowing rates, the total amount of credit shall be

deemed to be drawn down at the highest charge and borrowing rate applied to

the most common drawdown mechanism for this type of credit agreement;

(c)

if a credit agreement gives the consumer freedom of drawdown

in general but imposes, amongst the different ways of drawdown, a limitation

with regard to the amount and period of time, the amount of credit shall be

deemed to be drawn down on the earliest date provided for in the agreement

and in accordance with those drawdown limits;

(d)

if there is no fixed timetable for repayment, it shall be assumed

(i)

that the credit is provided for a period of one year; and

(ii) that the credit will be repaid in twelve equal instalments

and at monthly intervals;

(e)

if there is a fixed timetable for repayment but the amount of

such repayments is flexible, the amount of each repayment shall be deemed

to be the lowest for which the agreement provides;

(f)

unless otherwise specified, where the credit agreement provides

for more than one repayment date, the credit is to be made available and the

repayments made on the earliest date provided for in the agreement;

(g)

if the ceiling applicable to the credit has not yet been agreed,

that ceiling is assumed to be one thousand five hundred euro (€1500);

(h)

in the case of an overdraft facility the total amount of credit

shall be deemed to be drawn down in full and for the whole duration of the

credit agreement. If the duration of the credit agreement is not known the

annual percentage rate of charge shall be calculated on the assumption that

the duration of the credit is three months;

(i)

if different interest rates and charges are offered for a limited

period or amount, the interest rate and the charges shall be deemed to be the

highest rate for the whole duration of the credit agreement; and

(j)

for consumer credit agreements for which a fixed borrowing rate

is agreed in relation to the initial period, at the end of which a new borrowing

rate is determined and subsequently periodically adjusted according to an

agreed indicator, the calculation of the annual percentage rate of charge shall

be based on the assumption that, at the end of the fixed borrowing rate

period, the borrowing rate is the same as at the time of calculating the annual

percentage rate, based on the value of the agreed indicator at that time.

(1)

These regulations shall apply to consumer credit

agreements.

(2) Without prejudice to sub-regulation (1), these regulations

shall not apply to credit agreements

(a)

entered into before the date on which these

regulations shall come into force

Provided that open-end credit agreements which were

entered into before 1st October, 2010 shall be regulated by

regulations 12(4)(a), 12(4)(b), 12(5), 13, 17, 18(2) and 18(3);

(b)

which are secured by a hypothec, privilege, or land

registry charge, or by a right related to immovable property;

(c)

the purpose of which is to acquire or retain

property rights over land and or over an existing or projected

building;

(d)

involving a total amount of credit less than two

hundred euro (€200) or more than seventy-five thousand euro

(€75,000);

(e)

relating to hiring or leasing where an obligation to

purchase the object of the agreement is not laid down either by

the agreement itself or by a separate agreement. Such an

obligation shall be deemed to exist if it is so decided unilaterally

by the creditor;

(f)

in the form of an overdraft facility and where the

credit has to be repaid within one month, without prejudice to

regulation 9;

(g)

where the credit is granted free of interest and

without any other charges;

(h)

under the terms of which the credit has to be repaid

within three months and only insignificant charges are payable;

(i)

where the credit is granted by an employer to his

employees as a secondary activity free of interest or at annual

percentage rates of charge which are lower than those prevailing

on the market and which are not offered to the public;

(j)

which are concluded with European investment

firms as defined in article 2 of the Investment Services Act or Cap. 370.

with banks or credit institutions or electronic money institutions

as defined in article 2 of the Banking Act for the purpose of Cap. 371.

allowing an investor to carry out a transaction relating to one or

more of the instruments listed in the Second Schedule to the

Investment Services Act where the European investment firm or

bank or credit institution or electronic money institution

granting the credit is involved in such transaction;

(k)

which are the outcome of a settlement reached in

court or before another statutory authority;

(l)

which relate to the deferred payment, free of

charge, of an existing debt;

(m)

upon the conclusion of which the consumer is

requested to deposit an item as security in the creditor’s safe-

keeping and where the liability of the consumer is strictly

limited to that pledged item; and

(n)

which relate to loans granted to a restricted public

under a statutory provision with a general interest purpose and

at lower interest rates than those prevailing on the market or free

of interest or on other terms which are more favourable to the

consumer than those prevailing on the market and at interest

rates not higher than those prevailing on the market.

(3) Credit agreements in the form of

(a)

an overdraft facility and where the credit has to be

repaid on demand or within three months, shall be subject only

to regulations 1, 2, 3, for proviso 4(2)(a), 5(3), 5(4), 8 to 10,

11(3), 12(1), 12(2), 12(3), 12(5), 15, 17, 19(1), 19(2)(a) to (d),

20 to 24; and

(b)

an overrunning, shall be subject only to regulations

1 to 4, 18, 22 to 25.

(4) Credit agreements which provide for arrangements to be

agreed by the creditor and the consumer in respect of deferred

payments or repayment methods, where the consumer is already in

default on the initial credit agreement and where

(a)

such arrangements would be likely to avert the

possibility of legal proceedings concerning such default; and

(b)

the consumer would not thereby be subject to terms

less favourable than those laid down in the initial credit

agreement,

shall be subject only to regulations 1 to 4, 5(3), 5(4), the

application of regulation 7(a) to (f), paragraph (h), (i), and (m) in so

far as the information to be included in credit agreements, 8, 9, 11(3),

12(1) limitedly to the first sentence thereof regarding the consumer

credit referred to in sub-regulation 11(3) to be drawn up in writing or

on a durable medium, 12(1)(b), 12(2), 12(4), 13, 16, 18, 20 to 25.

Provided that credit agreements in the form of an overdraft

facility and where the credit has to be repaid on demand or within

three months, shall be regulated by sub-regulation (3)(a).

PART 4

OBLIGATIONS OF THE CREDITOR AND

CREDIT INTERMEDIARY

(1)

A creditor shall take all necessary steps to ensure Obligation to

comply with

full compliance with these regulations.

regulations.

(2) For the purpose of this Part, unless otherwise provided, the

obligations of the creditor shall equally apply to a credit intermediary

where a credit intermediary presents or offers credit agreements to

consumers, assists consumers by undertaking preparatory work in

respect of credit agreements, or concludes credit agreements with

consumers on behalf of the creditor.

(3) Where a credit intermediary participates or intends to Obligation of

participate in terms of sub-regulation (2), a credit intermediary shall: credit

intermediary

towards

consumers.

(a)

indicate in advertising and documentation intended

for consumers, the extent of his powers, in particular whether he

works exclusively with one or more creditors or as an

independent broker;

(b)

disclose the fee, if any, payable by the consumer

for his services, which fee shall be agreed in writing or on a

durable medium between the consumer and the credit

intermediary before the conclusion of the credit agreement; and

(c)

disclose the fee, if any, payable by the consumer to

the credit intermediary for his services to the creditor for the

purpose of calculating the annual percentage rate of charge.

(4) Regulations 6 to 9 shall not apply to suppliers of goods or

services acting as credit intermediaries in an ancillary capacity. This

is without prejudice to the creditor’s obligation to ensure that the

consumer receives the pre-contractual information referred to under

regulations 7 and 8.

(1)

In good time before a credit agreement is Obligation to

concluded, a creditor, and where applicable a credit intermediary, on provide

contractual

the basis of the credit terms and conditions offered by the creditor, information.

and taking into account the preferences expressed and information

supplied by the consumer, shall provide to the consumer the

information identified under regulation 7, in order to assist the

consumer in comparing different offers and reaching an informed

decision on whether to conclude a credit agreement with the creditor.

(2) With respect to credit agreements falling under regulation

7, a creditor and, where applicable, a credit intermediary, shall

provide adequate explanations to the consumer in order to place the

consumer in a position enabling him to assess whether the proposed

credit agreement is adapted to his needs and financial situation, where

appropriate by explaining the pre-contractual information provided

under regulation 7, the essential characteristics of the products

proposed and specific effects they may have on the consumer,

including the consequences of default in payment by the consumer.

(1)

The information to be disclosed by a creditor or

credit intermediary to consumers under regulation 6(1), other than

consumers whose credit agreement is regulated by regulations 8 and

9, shall specify

(a)

the type of credit to be provided under the

agreement;

(b)

the identity and geographical address of the

creditor and, where applicable, of the credit intermediary;

(c)

the total amount of credit to be provided under the

agreement and the conditions governing the drawdown of

credit;

(d)

the duration of the credit agreement;

(e)

in the case of credit in the form of deferred

payment for specific goods or services or linked-credit

agreements, the goods, services and the cash price thereof;

(f)

the borrowing rate, the conditions governing the

application of that rate and, where available, any index or

reference rate applicable to the initial borrowing rate, as well as

the periods, conditions, and procedures for changing the

borrowing rate; and if different rates apply in different

circumstances, the above information shall be supplied in

respect of all the applicable rates;

(g)

the annual percentage rate of charge and the total

amount payable by the consumer illustrated by means of a

representative example mentioning all the assumptions used in

order to calculate that rate. Where the consumer has informed

the creditor of one or more components of his preferred credit,

such as the duration of the credit agreement and the total

amount of credit, the creditor shall take those components into

account; if a credit agreement provides different ways of

drawdown with different charges or borrowing rates and the

creditor uses the assumptions set out in point (b) of Part II of the

Third Schedule, he shall indicate that other drawdown

mechanisms for this type of credit agreement may result in

higher annual percentage rates of charge;

(h)

the amount, number and frequency of payments to

be made by the consumer and where appropriate, the order in

which payments will be allocated to different outstanding

balances charged at different borrowing rates for the purpose of

reimbursement;

(i)

where applicable, the charges for maintaining one

or several accounts recording both payment transactions and

drawdowns, unless the opening of an account is optional, and

the charges for using a means of payment for both payment

transactions and drawdowns;

(j)

where applicable, any other charges deriving from

a credit agreement and the conditions under which those charges

may be changed;

(k)

where applicable, a statement that fees will be

payable by the consumer to a notary public on conclusion of the

credit agreement;

(l)

the obligation, if any, to enter into a contract for

ancillary services relating to the consumer credit agreement, in

particular insurance services, where the conclusion of such a

contract is compulsory in order to obtain the credit or to obtain

it on the terms and conditions marketed;

(m)

the interest rate applicable in the case of late

payments and the arrangements for its adjustment, and where

applicable, any charges payable for default;

(n)

a warning relating to the consequences of missing

payments;

(o)

where applicable, the sureties which need to be

identified by the consumer;

(p)

in the case of a credit agreement under which

payments made by a consumer do not give rise to an immediate

corresponding amortisation of the total amount of credit, but are

used to constitute capital during periods and under conditions

laid down in the credit agreement or in an ancillary agreement, a

clear and concise statement that such credit agreements do not

provide for a guarantee of repayment of the total amount of

credit drawn down under the credit agreement unless such a

guarantee is given;

(q)

the existence or absence of a right of withdrawal;

(r)

the consumer’s right of early repayment, and where

applicable the creditor’s right to compensation and the way in

which compensation is to be determined in accordance with

regulation 16;

(s)

the consumer’s right to be informed immediately

and free of charge pursuant to regulation 20(2) of the result of a

database consultation carried out for the purposes of assessing

credit worthiness;

(t)

if applicable, the period of time during which the

creditor is bound by the pre-contractual information; and

(u)

the consumer’s right to be supplied, on request and

free of charge from the creditor with a copy of the draft credit

agreement. This provision shall not apply if the creditor is at the

time of the request unwilling to proceed to the conclusion of the

credit agreement with the consumer.

(2) The information under sub-regulation (1) shall be provided

by means of the form contained in the First Schedule

Provided that the creditor shall be deemed to have

discharged the obligation of providing information under this

regulation and of providing information under regulations 5(1) and

(2) of the Distance Selling (Retail Financial Services) Regulations, if

the creditor has supplied the information in the form contained in the

First Schedule.

(3) Should the creditor provide to the consumer additional

information to that identified under sub-regulation (1), a separate

document shall be provided for this purpose, and shall be annexed to

the one under sub-regulation (2).

(4) In the case of voice telephony communications as referred

to in regulation 5(3) of the Distance Selling (Retail Financial

Services) Regulations, the description of the main characteristics of

the financial services to be provided pursuant to the second indent of

the proviso to regulation 5(5) of those Regulations shall specify, at

least

(a)

the total amount of credit and the conditions

governing the drawdown;

(b)

the duration of the credit agreement;

(c)

the goods, services and the cash price in the case of

credit in the form of deferred payment for specific goods or

services or linked credit agreements;

(d)

the borrowing rate, the conditions governing the

application of that rate and, where available, any index or

reference rate applicable to the initial borrowing rate, as well as

the periods, conditions, and procedure for changing the

borrowing rate; and if different rates apply in different

circumstances, the above information shall be supplied in

respect of all the applicable rates;

(e)

the amount, number and frequency of payments to

be made by the consumer and where appropriate, the order in

which payments will be allocated to different outstanding

balances charged at different borrowing rates for the purpose of

reimbursement;

(f)

the annual percentage rate of charge illustrated by

means of a representative example; and

(g)

the total amount payable by the consumer.

(5) If the agreement has been concluded at the consumer’s

request using a means of distance communication which does not

enable the information to be provided in accordance with sub-

regulation (1), in particular in the case referred to in sub-regulation

(4), the creditor shall provide the consumer with the full pre-

contractual information, using the form under the First Schedule,

immediately after the conclusion of the credit agreement.

(1)

In the case of a credit agreement which takes the Pre-contractual

form of an overdraft facility and where the credit has to be repaid on information

relating to an

demand or within three months, the creditor and, where applicable, overdraft

where credit has

the credit intermediary, shall in good time before the credit agreement to

demand or within

is entered into, provide to the consumer, on the basis of the credit three months.

terms and conditions offered by the creditor and, if applicable, the

preferences expressed and information supplied by the consumer, in

order to enable him to compare different offers to take an informed

decision on whether to conclude a credit agreement, with information

which shall specify

(a)

the type of credit to be provided under the

agreement;

(b)

the identity and geographical address of the

creditor and, where applicable, of the credit intermediary;

(c)

the total amount of credit to be provided under the

agreement;

(d)

the duration of the credit agreement;

(e)

the borrowing rate, the conditions governing the

application of that rate and any index or reference rate

applicable to the initial borrowing rate, the charges applicable

from the time the credit agreement is concluded, and where

applicable, the conditions under which those charges may be

changed;

(f)

the conditions and procedure for terminating the

credit agreement;

(g)

where applicable, an indication that the consumer

may be requested to repay the amount of credit in full at any

time;

(h)

the interest rate applicable in the case of late

payment and the arrangements for its adjustment, and where

applicable, any charges payable for default;

(i)

the charges applicable from the time the agreement

is concluded and, where applicable, the conditions under which

those charges may be changed;

(j)

the consumer’s right to be informed immediately

and free of charge pursuant to regulation 20(2) of the result of a

database consultation carried out for the purposes of assessing

creditworthiness; and

(k)

if applicable, the period of time during which the

creditor is bound by the pre-contractual information.

(2) The information under sub-regulation (1) shall be provided

in writing or on a durable medium, and may be provided by means of

the form contained in the Second Schedule

Provided that the creditor shall be deemed to have

discharged the obligation of providing information under this

regulation and the information under regulations 5(1) and (2) of the

Distance Selling (Retail Financial Services) Regulations, if the S.L. 330.07.

creditor has supplied the information contained in the Second

Schedule.

(3) In the case of voice telephony communication and where

the consumer requests that the overdraft facility be made available

with immediate effect, the description of the main characteristics of

the financial service shall include at least the items identified under

sub-regulation (1)(c), (e) and (g). In addition, in credit agreements of

the kind referred to in sub-regulation (4), the description of the main

characteristics shall include a specification of the duration of the

credit agreement.

(4)

In the case of a credit agreement as referred to in Pre-contractual

information

regulation 4(4) the creditor shall provide the consumer with

relating to

arrangements

agreed by the

(a)

the information provided for under sub-regulation consumer and

creditor in

(1)(a) to (f), (h), (j), (k);

respect of

deferred

the amount, number and frequency of payments to payments.

(b)

be made by the consumer and, where appropriate, the order in

which payments will be allocated to different outstanding

balances charged at different borrowing rates for the purposes of

reimbursement;

(c)

the right to early repayment, and where applicable,

information concerning the creditor’s right to compensation and

the way in which that compensation will be determined; and

(d)

the annual percentage of charge, illustrated by

means of representative examples, mentioning all the

assumptions used in order to calculate that rate

Provided that where the credit agreement is in the form of

an overdraft facility and where the credit has to be repaid on demand

or within three months, it shall be regulated by sub-regulation (1).

(5) If the agreement has been concluded at the consumer’s

request using a means of distance communication which does not

enable the information to be provided in accordance with sub-

regulations (1), (2) and (4), including in the cases referred to in sub-

regulation (3), the creditor shall immediately, after the conclusion of

the credit agreement, fulfil his obligations under sub-regulations (1),

(2) and (4) by providing the contractual information pursuant to

regulation 12 in so far as that regulation is applicable.

Notwithstanding regulation 4(2)(f), the requirements of the

first sentence of regulation 8(3) shall apply to credit agreements in the

form of an overdraft facility and where the credit has to be repaid

within one month.

(1)

Before the conclusion of a credit agreement, the

creditor shall assess the creditworthiness of the consumer on the basis

of sufficient information, where appropriate, obtained from the

consumer and, where necessary on the basis of a consultation of the

relevant database.

(2) If the parties agree to change the total amount of credit

after the conclusion of the credit agreement, the creditor shall

(a)

update the financial information at his disposal

concerning the consumer; and

(b)

assess the consumer’s creditworthiness,

before the total amount of credit is significantly increased.

PART 5

RIGHTS OF THE CONSUMER

(1)

The consumer shall be entitled to receive, free of

charge, and upon request, a copy of the draft consumer credit

agreement.

(2) Sub-regulation (1) does not apply if the creditor is, at the

time of the consumer’s request, unwilling to proceed to the

conclusion of the credit agreement with the consumer.

(3) On conclusion of the consumer credit agreement, all

contracting parties shall be entitled to receive, a copy of the final

agreement.

(1)

The consumer credit agreement referred to in

regulation 11(3) shall be drawn up in writing or on a durable medium

and shall specify the following

(a)

the information listed under regulation 7(1)(a), (c)

to (f), (h), (i), (j), (n) and (o);

(b)

the identities and geographical addresses of the

contracting parties as well as, if applicable, the identity and

geographical address of the credit intermediary involved;

(c)

the annual percentage rate of charge and the total

amount payable by the consumer calculated at the time the

credit agreement is concluded

Provided that all the assumptions used in

calculating that rate shall be mentioned;

(d)

where capital amortisation of a credit agreement

with a fixed duration is involved, the right of the consumer to

receive, on request and free of charge, at any time throughout

the duration of the credit agreement, a statement of account in

the form of an amortisation table.

The amortisation table shall

(i) indicate the payments owing and the periods

and conditions relating to the payment of such amounts;

(ii) contain a breakdown of each repayment

showing capital amortisation, the interest calculated on the

basis of the borrowing rate and where applicable any

additional costs;

(iii) where the interest is not fixed or the

additional costs may be changed under the credit

agreement, it shall indicate clearly and concisely that the

data contained in the table will remain valid only until such

time as the borrowing rate or the additional costs are

changed in accordance with the credit agreement;

(e)

if charges and interest are to be paid without capital

amortisation, a statement showing the periods and conditions

for the payment of the interest and of any associated recurrent

and non-recurrent charges;

(f)

the interest rate applicable in the case of late

payments as applicable at the time of the conclusion of the

credit agreement and the arrangement for its adjustment and,

where applicable, any charges payable for default;

(g)

the existence or absence of a right of withdrawal

together with conditions attached to such right, which

conditions shall include

(i)

the period during which the right may be

exercised;

(ii) the information concerning the obligation of

the consumer to pay the capital drawn down and the

interest in accordance with regulation 14(3)(b); and

(iii) the amount of interest payable per day;

(h)

information concerning the rights resulting under

regulations 15 and 16 and the conditions attached to those

rights;

(i)

the procedure to be followed in exercising the right

of termination of the credit agreement;

(j)

whether or not there is an out-of-court procedure

for the consumer to make a complaint, the redress mechanism

available and the methods for having access to it;

(k)

where applicable, the name and address of the

competent supervisory authority;

(l)

where applicable, other contractual terms and

conditions; and

(m)

where applicable, a statement, that notarial fees

will be payable.

(2)

In the case of a credit agreement under which

payments made by the consumer do not give rise to an

immediate corresponding amortisation of the total amount of

credit, but are used to constitute capital during periods and

under the conditions laid down in the credit agreement or in an

ancillary agreement, the information contained in sub-

regulation (1) shall, unless a guarantee is provided, include a

clear and concise statement that such credit agreements do not

provide a guarantee of repayment of the total amount of credit

drawn down under the credit agreement.

(3) In the case of a credit agreement falling under regulation

8(1), the agreement shall specify, in a clear and precise manner, the

following information

(a)

the type of credit;

(b)

the identities and geographical addresses of the

contracting parties, and where applicable, of the credit

intermediary involved;

(c)

the total amount of the credit and the conditions

governing the drawdown;

(d)

the borrowing rate, the conditions governing the

application of that rate, and, where available any index or

reference rate applicable to the initial borrowing rate, as well as

the periods, conditions and procedure for changing the

borrowing rate; if different borrowing rates apply in different

circumstances, the above information should be made

applicable to all the respective rates;

(e)

an indication that the consumer may, at any time,

upon demand be requested to repay the amount of credit in full;

(f)

conditions relating to the exercise of the right of

withdrawal from the credit agreement;

(g)

information concerning the charges applicable

from the time the agreement is concluded and, where applicable,

the conditions under which those charges may be changed; and

(h)

the duration of the credit agreement.

(4) (a)

Should there be a change in the borrowing rate, the

creditor shall

(i) inform the consumer of such a change before

the change enters into force;

(ii) communicate the information in writing or on

a durable medium;

(iii) inform the consumer of the amount of

payments to be made after the entry into force of the new

borrowing rates; and

(iv) if the number or frequency of the payments

changes, provide the consumer with the particulars of such

payment changes.

(b)

However, the parties may agree in the credit

agreement that the information referred to in paragraph (a) is to

be given to the consumer periodically in cases where the change

in the borrowing rate is caused by a change in a reference rate,

the new reference rate is made publicly available by appropriate

means, which may include a publication on the creditor’s

website or a public advert, and the information concerning the

new reference rate is also kept available in the premises of the

creditor.

(5) Where the credit agreement covers credit in the form of an

overdraft facility

(a)

the consumer is entitled to be kept regularly

informed in writing or on a durable medium by means of a

statement of account of

(i) the precise period to which the statement of

account relates;

(ii)

the amounts and dates of drawdowns;

(iii) the balance from the previous statement and

the date thereof;

(iv) the new balance;

(v) the dates and amounts of payments made by

the consumer;

(vi) the borrowing rate applied;

(vii) any charges that have been applied; and

(viii) where applicable, the minimum amount to be

paid;

(b)

Should there be a change in the borrowing rate or

in any charges payable, the consumer is entitled to be informed

in writing or on a durable medium by the creditor of the change

involved and before the change enters into force;

(c)

However, the parties may agree in the credit

agreement that information concerning the changes in the

borrowing rate is to be given in the manner provided for in

paragraph (a) in cases where the change in the borrowing rate is

caused by a change in the reference rate, the new reference rate

is made publicly available by appropriate means, which may

include a publication on the creditor’s website or a public

advert, and the information concerning the new reference rate is

also kept available in the premises of the creditor.

(6) Where sub-regulation (1)(d) applies, the creditor shall

make available to the consumer, free of charge and at any time

throughout the duration of the credit agreement, a statement of

account in the form of an amortisation table.

(1)

A consumer is entitled to terminate an open-end

credit agreement at any time and free of charge.

(2) A consumer credit agreement may however provide for a

period of notice not exceeding one month before termination by the

consumer.

(3) If provided for in the agreement, the creditor may

terminate an open-end consumer credit agreement by giving the

consumer not less than two months notice in writing or on a durable

medium.

(4) A creditor may not terminate the consumer’s right to

drawdown credit under an open-end consumer credit agreement

unless such termination is provided for in the agreement and is for an

objectively justified reason.

For the purpose of this sub-regulation "objectively justified

reasons" include suspicion by the creditor that the consumer is

involved in an unauthorised or fraudulent use of a credit, or that there

is a significant risk that the consumer will be unable to fulfil his

obligation to pay the credit.

(5) Where the creditor intends to invoke sub-regulation (4), he

shall inform in writing or on a durable medium the consumer of the

termination and reasons leading to such termination before the date of

termination or, if that is not practicable, immediately thereafter.

(6) Sub-regulation (5) shall not apply where provision of the

information would be contrary to public policy or public security or is

unlawful.

(1)

A consumer has a right to withdraw from a credit Right to

withdraw.

agreement without giving any reasons.

(2) The consumer’s right to withdraw must be exercised

within fourteen (14) running days which period starts to run either

(a)

from the day of the conclusion of the credit

agreement; or

(b)

from the day when the consumer receives the

contractual terms and conditions and information in accordance

with regulations 12(1) to (3), if that day is later than the date

referred to in paragraph (a)

Provided that for the purpose of credit facilities granted by

banking institutions which necessitate the issue of a letter of

acceptance, the credit agreement shall be deemed to be concluded on

the day the consumer accepts in writing or on a durable medium, the

terms and conditions listed in the agreement relative to such credit

facilities, including a sanction letter.

(3) If the consumer exercises his right of withdrawal, he shall

(a)

in order to give effect to the withdrawal before the

expiry of the period specified in sub-regulation (2), notify the

creditor in conformity with the information given to the

consumer under regulation 12(1)(g) by means which can be

proved according to law. The deadline shall be deemed to have

been met if that notification, if in writing or on a durable

medium that is available and accessible to the creditor, is

dispatched before the deadline expires;

(b)

repay to the creditor the credit provided and pay

the interest accrued on it, to be calculated on the basis of the

borrowing rate specified in the credit agreement, from the date

the credit was drawn down until the date it is repaid, without

any undue delay and no later than thirty (30) running days after

giving a notification in accordance with paragraph (a)

Provided that the creditor shall not be entitled to any other

compensation from the consumer in the event of withdrawal, except

compensation for any non-refundable charges paid by the creditor to

any public administrative body.

(4) Where an ancillary service relating to a consumer credit

agreement is provided by the creditor or by a third party on the basis

of an agreement between the third party and the creditor, the

consumer shall not be bound by the ancillary service agreement if the

consumer exercises his right of withdrawal in accordance with this

regulation.

(5) In virtue of sub-regulations (1) to (4), regulations 7 and 8

of the Distance Selling (Retail Financial Services) Regulations and

regulation 6 of the Distance Selling Regulations shall not apply.

(6) Sub-regulations (1) to (4) shall not apply to credit

agreements which by law are required to be concluded before a

Notary Public

Provided that the non-application of sub-regulations (1) to

(4) is subject to a confirmation by the Notary Public that the

consumer is guaranteed the rights provided for under regulations 7

and 12.

(1)

Where the consumer has exercised a right of

withdrawal, concerning a contract for the supply of goods or services,

he shall no longer be bound by a linked credit agreement.

(2) A consumer shall have the right to take action against the

grantor of credit where

(a)

in order to buy goods or obtain services, the

consumer enters into a credit agreement with a creditor other

than the supplier of such goods or services;

(b)

the grantor of the credit and the supplier of the

goods or services have a pre-existing agreement whereunder

credit is made exclusively by that grantor of credit to customers

of that supplier for the acquisition of goods or services from that

supplier;

(c)

the consumer referred to in paragraph (a) obtains

his credit pursuant to that pre-existing agreement;

(d)

the goods or services covered by the linked credit

agreement are either not supplied, are supplied only in part, or

are not in conformity with the contract for the supply thereof;

and

(e)

the consumer has pursued his remedies against the

supplier but has failed to obtain the remedy to which he is

entitled to according to the law or the contract for the supply of

goods or services.

(1)

A consumer shall have the right to discharge his Right to early

obligations under a consumer credit agreement, in full or in part, repayment.

before the agreed termination.

(2) If the consumer pays the creditor before the agreed

termination

(a)

the consumer shall be entitled to a reduction of

total costs of the credit consisting of the interest and the costs

for the remaining duration of the credit; and

(b)

the creditor shall be entitled to a fair and

objectively justified compensation for possible costs directly

linked to early repayment of credit so long as the early

repayment falls within a period for which the borrowing rate is

fixed.

(3) The compensation referred to under sub-regulation (2)(b)

may not exceed

(a)

1% of the amount of credit repaid early, if the

period of time between the early repayment and the agreed

termination of the credit agreement exceeds one year; and

(b)

0.5% of the amount of credit repaid early, if the

period of time between the early repayment and the agreed

termination of the credit agreement does not exceed one year.

(4)(a) The limitations under sub-regulation (3) in terms of

the amount of compensation which may be claimed by the

creditor shall exceptionally not apply if the creditor proves that

the loss suffered from early repayment exceeds the amount

determined under the said sub-regulation (3); and

(b)

A consumer may claim a corresponding reduction

to the compensation claimed by the creditor if the compensation

claimed exceeds the loss actually suffered.

For the purpose of this sub-regulation, the loss suffered

shall consist of the difference between the initial agreed interest

rate and the interest rate at which the creditor can lend out the

money repaid early on the market at the time of early

repayment. Consideration shall also be given to the impact of

early repayment on administrative costs.

(5) Compensation for early repayment under sub-regulation

(2)(b) shall not apply:-

(a)

if the repayment has been made under an insurance

contract intended to provide a credit repayment guarantee;

(b)

in the case of an overdraft facility;

(c)

if the repayment falls within a period for which the

borrowing rate is not fixed; or

(d)

if the amount of early repayment does not exceed

three thousand euro (€3,000) within any period of 12 months.

(6) A creditor may not claim compensation which is in excess

to the amount of interest which the consumer would have paid during

the period between the early repayment and the agreed date of

termination of the credit agreement.

(1)

Where the rights of the creditor under a credit Assignment of

agreement are, or the agreement itself is, assigned to a third party, the rights and set-off.

consumer shall be entitled to raise against that assignee, any defence

available to him against the original creditor. Such defence may also

include the right to set-off

Provided that set-off may only be raised in accordance

with the relevant provisions of articles 1196 to 1204 of the Civil Cap. 16.

Code, which shall apply irrespective of anything to the contrary

contained in the credit agreement.

(2) Where the rights of the credit are assigned under sub-

regulation (1), the consumer is entitled to be informed of such

assignment, except where the original creditor, by agreement with the

assignee, continues to service the credit towards the consumer.

(1)

Where a consumer enters into an agreement to Overrunning.

open a current account and the consumer is allowed an overrun, the

agreement shall contain in addition information relating to

(a)

the borrowing rate;

(b)

the conditions governing the application of that

rate;

(c)

the index or reference rate applicable to the initial

borrowing rate;

(d)

the charges applicable from the time the credit

agreement is concluded; and

(e)

the conditions under which those charges may be

changed, if applicable.

(2) In the event of a significant overrunning exceeding a

period of one month, the creditor shall inform the consumer without

delay of the overrunning in writing or on a durable medium of the

amount involved, the borrowing rate and, of any penalties, charges or

interest on arrears which are applicable.

(3) The agreement under sub-regulation (1) shall be in writing

or on a durable medium and provided on a regular basis.

PART 6

MISCELLANEOUS

(1)

Without prejudice to the provisions relating to Advertisements.

unfair commercial practices under the Act, where a credit Cap. 378.

advertisement includes an interest rate or any figure relating to the

cost of the credit to the consumer, the advertisement shall also include

standard information by means of a representative example in

accordance with sub-regulation (2).

(2) The representative example referred to in sub-regulation

(1) shall comprise the following items of information

(a)

the borrowing rate, whether fixed, variable or both;

(b)

particulars of any charges included in the total cost

of credit to the consumer;

(c)

the total amount of credit;

(d)

the annual percentage rate of charge except in the

case of credit agreements referred to in regulation 8;

(e)

the duration of the agreement;

(f)

in the case of credit in the form of a deferred

payment for specific goods or services, the cash price and the

amount of any advance payment;

(g)

if applicable, the total amount payable by the

consumer; and

(h)

if applicable, the amount of each repayment of

A credit advertisement shall include a clear and

concise statement in respect of any obligation to enter into a contract

in respect of an ancillary service relating to the credit agreement, in

particular an insurance service, where

(i) the conclusion of that service is compulsory

in order to obtain the credit or to obtain it on the terms and

conditions advertised; and

(ii) the cost of that service cannot be determined

in advance.

(b)

The obligation referred to in paragraph (a) shall be

advertised in a prominent way and accompanied by the annual

percentage rate of charge.

A creditor from another Member State who intends

to or has entered into a credit agreement with a consumer in Malta,

shall have access under the conditions as a Maltese creditor, to the

databases which are available in Malta in order to assess the

creditworthiness of the consumer

Provided that a request by a creditor for access to the said

database may be refused by the holder of the database if the

information to be provided is prohibited by any other law, or is

contrary to the public policy or public security of Malta.

(2) If the credit application is rejected on the basis of

consultation of a database, the creditor shall inform the consumer

immediately and without charge of the result of such consultation and

of the particulars of the database consulted.

(3) This regulation is without prejudice to the application of

the Data Protection Act.

(1)

jidħol jew ikun daħal fi ftehim ta’ kreditu ma’ konsumatur f’Malta,

għandu jkollu aëëess, taħt l-istess kondizzjonijiet li japplikaw għal

kreditur Malti, għad-databases disponibbli f’Malta bil-għan li

jivvaluta l-affidabbiltà finanzjarja tal-konsumatur

IŜda t-talba ta’ kreditur għal aëëess tal-imsemmija

database tista’ tiāi rifjutata mid-detentur tad-database jekk l-

informazzjoni li tkun ser tiāi pprovduta ma tkunx permessa b’xi liāi,

jew tmur kontra l-politika pubblika jew is-sigurtà pubblika ta’ Malta.

(2) Jekk l-applikazzjoni għal kreditu tkun rifjutata fuq baŜi ta’

konsultazzjoni ta’ database, il-kreditur għandu jgħarraf lill-

konsumatur minnufih u mingħajr ħlas bir-riŜultat ta’ dik il-

konsultazzjoni u d-dettalji tad-database konsultata.

(3) Dan ir-regolament huwa bla ħsara għall-applikazzjoni tal-

Att dwar il-Protezzjoni u l-Privatezza tad-Data.

Ir-rata perëentwali annwali ta’ ħlas tfisser l-

(1)

The annual percentage rate of charge means the Calculation of

total cost of the credit to the consumer, expressed as an annual the

percentage rate

of charge.

percentage of the total amount of credit.

(2) The annual percentage rate of charge, equating, on an

annual basis, to the present value of all commitments (drawdowns,

repayments and charges), future or existing, agreed by the creditor

and consumer, shall be calculated in accordance with the

mathematical formula set out in Part I of the Third Schedule.

(3) The following costs shall be included in the total cost of

credit to the consumer

(a)

the costs of maintaining an account recording both

payment transactions and drawdowns;

(b)

the costs of using a means of payment for both

payment transactions and drawdowns; and

(c)

other costs relating to payment transactions.

(4) The costs mentioned in sub-regulation (3) shall not be

included in the total cost of credit to the consumer where the opening

of the account is optional and the costs of the account have been

clearly and separately shown in the consumer credit agreement or in

any other agreement concluded with the consumer.

(5) For the purpose of calculating the annual percentage rate

of charge, the total cost of the credit to the consumer shall be

determined, with the exception of any charges payable by the

consumer for non-compliance with any of his commitments laid

down in the credit agreement and charges other than the purchase

whether the transaction is effected in cash or on credit.

(6) The calculation of the annual percentage rate of charge

shall be based on the assumption that

(a)

the credit agreement is to remain valid for the

period agreed and that the creditor and the consumer will fulfil

their obligations under the terms and by the dates specified in

the credit agreement; and

(b)

the borrowing rate and other charges will remain

fixed in relation to the initial level and will remain applicable

until the end of the credit agreement in the circumstance that the

credit agreement contains a clause allowing variations in the

borrowing rate and, where applicable, charges contained in the

annual percentage rate of charge but unquantifiable at the time

of calculation.

(7) Where necessary the additional assumptions set out in the

Third Schedule may be used in calculating the annual percentage rate

of charge.

It shall be the responsibility of the Director under these

regulations to

(a)

monitor the working and effectiveness of these

regulations and to take such measures as he deems necessary in

order to ensure compliance with these regulations;

(b)

supervise the creditors and credit intermediaries,

and ensure that there is compliance by them with the obligations

identified under these regulations; and

(c)

ensure that the rights granted to consumers by these

regulations are not diminished by the provision of any other law.

(1)

The Director may impose an administrative fine,

issue such order, or decision or take such measure as he deems

appropriate in terms of the Act, upon any person who contravenes or

fails to comply with any of the provisions of these regulations.

(2) Any person who contravenes any provision of these

regulations shall be guilty of an infringement punishable by an

administrative fine of not less than one thousand euro (€1,000) and

not exceeding forty-five thousand euro (€45,000).

(3) In the case of non-compliance with a compliance order, the

Director may impose a daily fine of not less than one hundred and

thirty euro (€130) and not more than two hundred and thirty euro

(€230) for each day of non-compliance.

(4) In determining the amount of the administrative fine

specified in this regulation, the Director shall be guided by the

following considerations-

(a)

for infringements under these regulations, the basic

amount of the fine shall be twenty thousand euro (€20,000)

Provided that the Director may, in setting the fine, take into

account circumstances that may lead to an increase or decrease in the

basic amount

Provided further that the Director shall do so on the basis

of an overall assessment which takes into account all the relevant

circumstances, including the value of the credit and the turnover of

the creditor;

(b)

the Director may impose a higher administrative

fine than the basic amount where there are aggravating

circumstances, having regard, in particular, to the gravity and

duration of the infringement and, or to the amount of gains

improperly made as a result of the infringement;

(c)

without prejudice to the generality of paragraph

(b), the following shall in all cases be deemed as aggravating

circumstances

(i)

a second or subsequent infringement;

(ii) where the infringement constitutes an unfair

commercial practice in terms of the Act; and

(d)

the basic amount may be decreased where the

Director finds that there are mitigating circumstances in

particular

(i) where the creditor or the credit intermediary,

as the case may be, provides evidence that he terminated

the infringement concerned prior to or as soon as the

Director commenced an investigation;

(ii) where the creditor or the credit intermediary,

as the case may be, provides evidence that he has taken

adequate steps to reduce the negative effects of the

infringement; and

(iii) where the creditor or the credit intermediary,

as the case may be, who is served with a notice in terms of

article 106A(5) of the Act, elects to pay the administrative

fine without contestation

Provided that this paragraph shall not apply in the

case of a second or subsequent infringement.

(5) In discharging his functions under these regulations, the

Director shall have the same powers of investigation and enforcement

as prescribed under the Act.

(6) Any person who feels aggrieved by a decision, order,

administrative fine or measure taken by the Director, may file an

appeal before the Appeals Board established in terms of article 110A

of the Act, and articles 110B to 110G of the Act shall mutatis

mutandis apply.

(1)

The provisions of these regulations shall prevail

and apply notwithstanding anything to the contrary contained in any

credit agreement entered into by the consumer.

(2) Any waiver by the consumer of any of the rights granted to

him by these regulations shall be null and void.

(3) Notwithstanding any provision in the credit agreement to

the effect that the applicable law to the credit agreement shall be the

law of a non-Member State, the protection granted by these

regulations shall continue to apply where the credit agreement has a

close link with the territory of Malta or of any other Member State.

(1)

The Consumer Credit Regulations, 2005, shall as

from the date of coming into force of these regulations be repealed,

except for

(a)

regulation 5, the Second Schedule and the Third

Schedule; and

(b)

regulations 3, 4, 6, 7(1), 9 to 12, 14, 16 to 18 and,

the First, Fourth and Fifth Schedules in so far as applicable to

home loans.

(2) Without prejudice to sub-regulation (1), agreements

entered into under the Consumer Credit Regulations, 2005, before the

coming into force of these regulations, shall remain in force and be

regulated by the terms and conditions applicable thereto.