Immovable Property (Amendment) Regulations, 2024

L.N. 18 of 2024

CONSUMER AFFAIRS ACT

(CAP. 378)

Credit Agreements for Consumers relating to Residential

Immovable Property (Amendment) Regulations, 2024

IN EXERCISE of the powers conferred by article 7(1A) of the

Consumer Affairs Act, the Minister responsible for consumer affairs,

after consulting the Consumer Affairs Council, and acting on the

advice of the Malta Financial Services Authority, has made the

following regulations:-

(1) The title of these regulations is the Credit Citation and

Agreements for Consumers relating to Residential Immovable commencement.

Property (Amendment) Regulations, 2024 and these regulations shall

be read and construed as one with the Credit Agreements for S.L. 378.10.

Consumers relating to Residential Immovable Property Regulations,

hereinafter referred to as the "principal regulations".

(2) These regulations shall be deemed to have come into force

on 30th December 2023.

Sub-regulation (2) of regulation 1 of the principal Amends

regulations shall be substituted by the following new sub-regulation: regulation

the principal

regulations.

" (2) The scope of these regulations is to

(a) transpose the provisions of Directive

2014/17/EU of the European Parliament and of the

Council of 4 February 2014 on credit agreements for

consumers relating to residential immovable

property and amending Directives 2008/48/EC and

2013/36/EU and Regulation (EU) No 1093/2010;

and

(b) transpose article 28 of Directive (EU)

2021/2167 of the European Parliament and of the

Council of 24 November 2021 on credit servicers

and credit purchasers and amending Directives 2008/

48/EC and 2014/17/EU. ".

Immediately after sub-regulation (2) of regulation 15 of Amends

the principal regulations there shall be added the following new sub- regulation

the principal

regulations.

regulation

(2A) Without prejudice to other obligations

provided for in these regulations, prior to modifying the

terms and conditions of the credit agreement, the creditor

and conditions

shall communicate the following information to the

consumer

(a) a clear description of the proposed

changes and, where applicable, of the need for

consumer consent or of the changes introduced by

operation of law;

(b) the time period for the implementation

of the changes referred to in paragraph (a);

(c) the means for complaint available to the

consumer regarding the changes referred to in

paragraph (a);

(d) the time period available for filing any

such complaint;

(e) the name and address of the Arbiter for

Financial Services as established under the Arbiter

for Financial Services Act before whom the

consumer may submit the said complaint.".

The marginal note of regulation 17 of the principal

regulations shall be substituted by the following new marginal note

"Assignment of the creditor’s rights or of the credit

agreement itself.".

Regulation 17C of the principal regulations shall be

amended as follows

(a) the marginal note thereof shall be substituted by the

following new marginal note

"Arrears and enforcement.";

(b) sub-regulation (1) thereof shall be substituted by the

following new sub-regulation

"(1) Creditors shall have adequate policies and

procedures to ensure that they make efforts to exercise,

where appropriate, reasonable forbearance before

enforcement proceedings are instituted. The said

forbearance measures shall take into account, among

other elements, the consumer’s circumstances and among

other possibilities may consist of

(a) a total or partial refinancing of a credit

agreement;

(b) a modification of the existing terms and

conditions of a credit agreement, which among

others may include

(i) extending the term of the credit

agreement;

(ii) changing the type of credit

agreement;

(iii) deferring payment of all or part of

the instalment repayment for a period;

(iv) changing the interest rate;

(v) offering a payment holiday;

(vi) partial repayments;

(vii) currency conversions;

(viii) partial forgiveness and debt

consolidation

Provided that the list of potential forbearance

measures set out in this sub-regulation is without

prejudice to the rules set out in national law, including in

particular the national provisions implementing the

European Banking Authority Guidelines on management

of non-performing and forborne exposures (EBA/GL/

2018/06), the European Central Bank Guidance to banks

on non-performing loans, and the Guidelines on the

requirements regarding arrears and enforcement set out in

the Fourth Schedule which implement the European

Banking Authority Guidelines on arrears and

foreclosure."; and

(c) in sub-regulations (6) and (7) thereof, the word

"foreclosure", wherever it occurs, shall be substituted by the

word "enforcement".

In the Fourth Schedule to the principal regulations, the Amends the

words "Guidelines on the requirements regarding arrears and Fourth

foreclosure" shall be substituted by the words "Guidelines on the regulations.

requirements regarding arrears and enforcement".

€0.36