Financial Institutions Act (Consumer Credit) Regulations, 2025

Suppliment tal-Gazzetta tal-Gvern ta’ Malta, Nru. 21,540, 18 ta’ Novembru, 2025

L.N. 266 of 2025

FINANCIAL INSTITUTIONS ACT

(CAP. 376)

Financial Institutions Act (Consumer Credit) Regulations, 2025

IN EXERCISE of the powers conferred by article 12 of the

Financial Institutions Act, the Minister responsible for the regulation

of financial services, acting on the advice of the Malta Financial

Services Authority, has made the following regulations:-

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

scope.

Institutions Act (Consumer Credit) Regulations, 2025.

(2) The scope of these regulations is to apply the relevant

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, in so far as applicable to

creditors as herein defined, and consequently these regulations shall be

interpreted and applied accordingly and read in conjunction with the

Consumer Credit Regulations, where applicable, as specified in these S.L. 378.12.

regulations.

(3) These regulations establish a common framework for

certain aspects of laws, regulations and administrative provisions

concerning credit agreements covering credit for consumers falling

within the scope of these regulations in accordance with regulation 4.

(4) These regulations shall come into force on such a date or

dates as the Minister responsible for finance may by notice in the

Gazette establish and different dates nay be so established for different

provisions and, or purposes of these regulations.

(regulation 9)

STANDARD EUROPEAN CONSUMER CREDIT

INFORMATION

(*) 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.

1. Identity and contact details of the creditor/credit

intermediary

Creditor

[Identity]

Address

[Geographical address to be used by

the consumer]

Telephone number (*)

E-mail address (*)

Fax number (*)

Web address (*)

If applicable

Credit intermediary

[Identity]

Address

[Geographical address to be used by

the consumer]

Telephone number (*)

E-mail address (*)

Fax number (*)

Web address (*)

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

You will have to pay the following

Instalments and, where

appropriate, the order in which

[The amount, number and

instalments will be allocated

frequency of payments to be made

by the consumer]

Interest and/or charges will be paya-

ble in the following manner

The total amount you will have to [Sum of total amount of credit and to-

tal cost of credit]

pay

This means the amount of

borrowed capital plus interest

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

[Kind of sureties]

Sureties required

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

[percentage (%)

The borrowing rate or, if

applicable, different borrowing

- fixed, or

rates which apply to the credit

agreement

- variable (with the index or refer-

ence rate applicable to the initial bor-

rowing rate),

- periods]

[percentage (%) A representative ex-

Annual Percentage Rate of

ample mentioning all the

Charge (APR)

assumptions used for calculating the

This is the total cost expressed as rate to be set out here]

an annual percentage of the total

amount of credit. 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 Yes/no [if yes, specify the kind of in-

securing the credit? or

surance]

-

another

ancillary Yes/no [if yes, specify the kind of

service contract?

ancillary service]

If the costs of these services are

not known by the creditor they are

not included in the APR.

Related costs

If applicable

Maintaining one or more accounts

is required for recording both

payment transactions and

drawdowns

If applicable

Amount of costs for using a

specific means of payment (e.g. a

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 You will be charged

[…… (applicable interest rate and

arrangements for its adjustment and,

Missing payments could have

severe consequences for you (e.g. where applicable, default charges)]

forced sale) and make obtaining for missing payments.

credit more difficult.

4. Other important legal aspects

Yes/no

Right of withdrawal

You have the right to withdraw

from the credit agreement within

a period of 14 calendar days.

Early repayment

You have the right to repay the

credit early at any time in full or

partially.

If applicable

[Determination of the

The creditor is entitled to

compensation in the case of early compensation (calculation method)

in accordance with regulation 22]

repayment

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 credit 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 This information is valid from …

the creditor is bound by the pre- until …

contractual information

5. Additional information in the case of distance marketing

of financial services

If applicable

(a)

concerning the creditor

If applicable

[Identity]

Representative of the creditor in

[Geographical address to be used by

your Member State of residence

the consumer]

Address

Telephone number (*)

E-mail address (*)

Fax number (*)

Web address (*)

If applicable

[The trade register in which the cred-

Registration

itor is entered and his

registration number or an

equivalent means of identification in

such register]

If applicable

The supervisory authority

(b) concerning the credit

agreement

If applicable

[Practical instructions for

Exercise of the right of

exercising the right of withdrawal in-

withdrawal

dicating, inter alia, the period for ex-

ercising the right, the address to

which notification of exercise of the

right of withdrawal should be sent

and the consequences of

non-exercise of such 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

[Relevant clause to be set out here]

Clause stipulating the governing

law applicable to the credit

agreement and/or the competent

court

If applicable

Information and contractual terms

Language regime

shall be supplied in [specific

language]. With your consent, we in-

tend to communicate in [specific lan-

guage/languages] during the

duration of the credit agreement.

(c) concerning redress

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

court complaint and redress

court complaint and redress

mechanism for the consumer who is

mechanism

a party to the distance contract and, if

so, the methods of access to it]

(1)

In these regulations, unless the context otherwise Interpretation.

requires

"Act" means the Financial Institutions Act;

''annual percentage rate of charge'' means the total cost of

the credit to the consumer, expressed as an annual percentage of

the total amount of credit;

''Authority'' shall have the same meaning as assigned to it in

the Malta Financial Services Authority Act;

"consumer" means a natural person who, in transactions

covered by these regulations, is acting either in his own personal

capacity or for the purposes of carrying out his trade, business or

profession;

''Consumer Credit Directive'' means 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, as may be amended from time to time;

"creditor" means a company that holds a licence issued by

the Authority in accordance with article 5 of the Act, by virtue of

which it is licensed to grant, or promise to grant credit;

"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

(a) presents

or

offers

credit

agreements

to

consumers;

(b) assists consumers by undertaking preparatory

work in respect of credit agreements other than as referred

to in paragraph (a); or

(c) concludes credit agreements with consumers on

behalf of the creditor;

''European creditor'' means a payment institution in

accordance with the Payment Services Directive, or an

electronic money institution in accordance with the

Electronic Money Directive authorised by its European

regulatory authority in a Member State to grant, or promise

to grant credit, and which has exercised its right to establish

a branch or to provide services in Malta;

''Financial Institutions Rules'' shall have the same meaning

as assigned to it in the Act;

"Financial Services Tribunal" means the tribunal

established under article 21 of the Malta Financial Services Cap. 330.

Authority Act;

"Member State" shall have the same meaning as assigned to

it in the 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;

(2) Words and expressions used in these regulations which are

also used in the Consumer Credit Directive and, or the Act, but which

are not defined herein, shall have the same meaning as assigned to

them in the said Directive and the Act.

(regulation 10)

EUROPEAN CONSUMER CREDIT INFORMATION FOR

(1)

overdrafts

(2)

debt conversion

(*) 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.

1. Identity and contact details of the creditor/credit

intermediary

Creditor

[Identity]

Address

[Geographical address to be used by

the consumer]

Telephone number (*)

E-mail address (*)

Fax number (*)

Web address (*)

If applicable

Credit intermediary

[Identity]

Address

[Geographical address to be used by

the consumer]

Telephone number (*)

E-mail address (*)

Fax number (*)

Web address (*)

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.

If applicable

You may be requested to repay

the amount of credit in full on

demand at any time.

3. Costs of the credit

[percentage (%)

The borrowing rate or, if

- fixed, or

applicable, different borrowing

rates which apply to the credit

- variable (with the index or refer-

agreement

ence rate applicable to the initial bor-

rowing rate)

If applicable

[percentage (%) A representative ex-

Annual Percentage Rate of

ample mentioning all the

Charge (APR) (*)

assumptions used for calculating the

This is the total cost expressed as rate to be set out here]

an annual percentage of the total

amount of credit. The APR is

there to help you compare

different offers.

If applicable

[The costs applicable from the time

Costs

the credit agreement is concluded]

If applicable

The conditions under which those

costs may be changed

Costs in the case of late payments You will be charged

[…… (applicable interest rate and ar-

rangements for its adjustment and,

where applicable, default charges)]

for missing payments.

4. Other important legal aspects

[The conditions and procedure for

Termination of the credit

terminating the credit agreement]

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 bases 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 This information is valid from … un-

the creditor is bound by the pre- til…

contractual information

5. Additional information to be given where the pre-

contractual information relates to a consumer credit for debt

conversion

If applicable

Instalments and, where

You will have to pay the following

appropriate, the order in which

[Representative example of an in-

instalments will be allocated

stalment 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

[Determination

of

the

The creditor is entitled to

compensation

(calculation

method)

compensation in the case of early

in accordance with regulation 22]

repayment

6. Additional information in the case of distance marketing

of financial services

If applicable

(a)

concerning the creditor

If applicable

[Identity]

Representative of the creditor in

[Geographical address to be used by

your Member State of residence

the consumer]

Address

Telephone number (*)

E-mail address (*)

Fax number (*)

Web address (*)

If applicable

[The trade register in which the cred-

Registration

itor is entered and his

registration number or an equivalent

means of identification in such regis-

ter]

If applicable

The supervisory authority

(b) concerning the credit

agreement

Yes/No

Right of withdrawal

You have the right to withdraw

from the credit agreement within

a period of 14 running days

If applicable

[Practical instructions for

Exercise of the right of

exercising the right of withdrawal in-

withdrawal

dicating, inter alia, the address to

which notification of the exercise of

withdrawal should be 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

[Relevant Clause to be set out here]

Clause stipulating the governing

law applicable to the credit

agreement and/or the competent

court

If applicable

Information and contractual terms

Language regime

will be supplied in [specific

language]. With your consent, we in-

tend to communicate in [specific lan-

guage/languages] during the

duration of the credit agreement.

(c) concerning redress

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

court complaint and redress

court complaint and redress

mechanism

mechanism for the consumer who is

party to the distance contract and, if

so, the methods of access to it]

(1) The Authority established by article 3 of the Malta Competent

Financial Services Authority Act shall be the designated competent authority.

authority in Malta responsible for the implementation of the Consumer

Credit Directive, insofar as applicable to financial institutions duly

licensed by the same.

(2) The Authority shall, with respect to credit agreements

marketed, distributed or sold in or from Malta, monitor the compliance

of creditors and credit intermediaries with the provisions of these

regulations and any Financial Institutions Rules made thereunder.

(3) For the better implementation of the Consumer Credit

Directive, the Authority may exercise any of the powers assigned to it

under the Act.

(4) For the better carrying out of these regulations, the

Authority may, from time to time, issue and publish Financial

Institutions Rules, in accordance with article 13 of the Act, and such

rules shall be binding on creditors and other persons as may be

specified therein.

(regulation 9)

I.

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,

M

is the number of the last drawdown,

K

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

is the amount of drawdown

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 = 0,

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

l

is the number of a repayment or payment of charges,

is the amount of a repayment or payment of charges,

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 (Ak), which shall be positive or negative, in other

words either paid or received during periods 1 to k, expressed in years,

i.e.

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

the equivalence of flows, the value shall be zero.

II. The additional assumptions for the calculation of the

annual percentage rate of charge shall be as follows

(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 gives the consumer freedom of

drawdown in general but imposes, amongst the different ways of

drawdown, a limitation with regard to the amount of credit and

period of time, the amount of credit shall be deemed to be drawn

down on the earliest date provided for in the credit agreement

and in accordance with those drawdown limits.

(c) 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.

(d) 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

overdraft facility is not known, the annual percentage rate of

charge shall be calculated on the assumption that the duration of

the credit is three (3) months.

(e) In the case of an open-end credit agreement, other

than an overdraft facility, it shall be assumed that

(i) the credit is provided for a period of one year

starting from the date of the initial drawdown, and that the

final payment made by the consumer clears the balance of

capital, interest and other charges, if any;

(ii) the capital is repaid by the consumer in equal

monthly payments, commencing one (1) month after the

date of the initial drawdown. However, in cases where the

capital must be repaid only in full, in a single payment,

within each payment period, successive drawdowns and

repayments of the entire capital by the consumer shall be

assumed to occur over the period of one (1) year. Interest

and other charges shall be applied in accordance with those

drawdowns and repayments of capital and as provided for

in the credit agreement

Provided that for the purposes of this paragraph,

an open-end credit agreement is a credit agreement without

fixed duration and includes credits which must be repaid in

full within or after a period but, once repaid, become

available to be drawn down again.

(f) In the case of credit agreements other than overdrafts

and open-end credits as referred to in the assumptions

established in paragraphs (d) and (e)

(i) if the date or amount of a repayment of capital

to be made by the consumer cannot be ascertained, it shall

be assumed that the repayment is made at the earliest date

provided for in the credit agreement and is for the lowest

amount for which the credit agreement provides;

(ii) if the date of conclusion of the credit agreement

is not known, the date of the initial drawdown shall be

assumed to be the date which results in the shortest interval

between such date and the date of the first payment to be

made by the consumer.

(g) Where the date or amount of a payment to be made by

the consumer cannot be ascertained on the basis of the credit

agreement or the assumptions established in paragraphs (d), (e)

or (f), it shall be assumed that the payment is made in accordance

with the dates and conditions required by the creditor and, when

these are unknown

(i) interest charges are paid together with the

repayments of capital;

(ii) a non-interest charge expressed as a single sum

is paid at the date of the conclusion of the credit agreement;

(iii) non-interest charges expressed as several

payments are paid at regular intervals, commencing with

the date of the first repayment of capital, and if the amount

of such payments is not known they shall be assumed to be

equal amounts;

(iv) the final payment clears the balance of capital,

interest and other charges, if any.

(h) If the ceiling applicable to the credit has not yet been

agreed, that ceiling is assumed to be €1500.

(i) If different borrowing rates and charges are offered

for a limited period or amount, the borrowing rate and the

charges shall be deemed to be the highest rate for the whole

duration of the credit agreement.

(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 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.

€ 1.89

(1) These regulations shall apply to credit agreements Applicability.

covering credit for consumers insofar as the said credit agreements are

granted or promised to be granted by creditors as defined in regulation

2. (2) Specific provisions shall apply limitedly to the following

credit agreements, as follows

(a) only regulations 1, 2, 3, 5, 6(3), 6(4), 7(1), 7(2)(a) to

(d), 10 to 13, 14, 15(4), 15(5), 21, 24 and 26 to 28 shall apply to

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

demand or within three (3) months; or

(b) only regulations 1 to 5, 25, 27 and 28 shall apply to

an overrunning;

(c) only regulations 1 to 4, 6(3), 6(4), 7, 14 the

application of regulation 9(a) to (f), (h), (i), and (m) in so far as

the information to be included in credit agreements, regulations

10, 11, 13, 14(3), 15(1) limitedly to the requirement of a credit

agreement to be drawn up in writing or on a durable medium,

regulations 15(1)(b), 15(2), 16, 19, 22 and 25 to 28 shall apply to

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

(i) such arrangements would be likely to avert the

possibility of legal proceedings concerning such default;

and

(ii) the consumer would not thereby be subject to

terms which are less favourable than those established in

the initial credit agreement.

Without prejudice to regulation 4, these regulations shall

not apply to credit agreements

entered into before 1 st October 2010

(a)

Provided that open-end credit agreements which were

entered into before 1 st October 2010 shall be regulated by

regulations 16, 18, 19, 24, 25(2) and 25(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)

Provided that, notwithstanding this provision, these

regulations shall apply to unsecured credit agreements the

purpose of which is the renovation of a residential immovable

property involving a total amount of credit above seventy-five

thousand euro (€75,000);

(e) relating to hiring or leasing where an obligation to

purchase the object of the agreement is not stipulated 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 (1) month, without prejudice to

regulation 11;

(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 (3) 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 with Cap. 370.

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.

(1) A creditor shall take all the necessary steps to ensure

full compliance with these regulations.

(2) Unless otherwise provided, the obligations of the creditor

shall equally apply to a European creditor, and 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

participate in accordance with sub-regulation (2), a credit intermediary

shall

(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 to 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 8 to 11 shall not apply to suppliers of goods or

services acting as credit intermediaries in an ancillary capacity

Provided that this is without prejudice to the creditor’s

obligation to ensure that the consumer receives the pre-contractual

information referred to in regulations 9 and 10.

(1) Without prejudice to the provisions relating to unfair

commercial practices under the Consumer Affairs Act, any advertising

concerning credit agreements which indicates an interest rate or any

figure relating to the cost of the credit to the consumer, the

advertisement shall 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 specify and comprise in a clear, concise and prominent way,

the following items of information

(a) the borrowing rate, whether fixed, or variable or both,

together with particulars of any charges included in the total cost

of credit to the consumer;

(b)

the total amount of credit;

(c) the annual percentage rate of charge except in the

case of credit agreements referred to in regulation 4(2)(a);

(d)

the duration of the agreement;

(e) 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;

(f) if applicable, the total amount payable by the

consumer; and

(g) if applicable, the amount of each repayment of credit.

(3) (a) An advertisement concerning credit agreements 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.

(1) In good time before a credit agreement is concluded, Obligation to

a creditor, and where applicable a credit intermediary, on the basis of provide

contractual

the credit terms and conditions offered by the creditor, and taking into information.

account the preferences expressed and information supplied by the

consumer, shall provide to the consumer the information identified

under regulation 9, 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 or otherwise.

(2) With respect to credit agreements falling under regulation

9, 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 9, 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 8(1), other than consumers

whose credit agreement is regulated by regulations 10 and 11, 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 such 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 provided 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 shall 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 shall 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

provided 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 22;

(s) the consumer’s right to be informed immediately and

free of charge pursuant to regulation 13(2) of the result of a

database consultation carried out for the purposes of assessing

creditworthiness;

(t) if applicable, the period of time during which the

creditor is bound by the pre-contractual information; and

(u) the right of the consumer 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 Standard European Consumer Credit Information

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) If the creditor provides the consumer with additional

information to that listed in sub-regulation (1), a separate document

shall be provided for this purpose and shall be annexed to the form

contained in the First Schedule.

(4) Where the credit agreement references a benchmark as

defined in regulation 2(1) of the Malta Financial Services Authority

Act (Indices used as benchmarks in financial instruments and financial

contracts or to measure the performance of investment funds)

Regulations, the name of the benchmark and of its administrator and

the potential implications on the consumer shall be provided by the

creditor, or where applicable, by the credit intermediary, to the

consumer in a separate document, which may be annexed to the form

contained in the First Schedule.

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

to in regulation 5(3) of the Distance Selling (Retail Financial Services) S.L. 330.07.

Regulations, the description of the main characteristics of the financial

services to be provided pursuant to regulation 5(3)(a)(ii) of the said

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 shall 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 contained in the First Schedule,

immediately after the conclusion of the credit agreement.

(1) In the case of a credit agreement which takes the form

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

demand or within three (3) months, the creditor and where applicable,

the credit intermediary, shall within reasonable time before the credit

agreement is entered into, provide to the consumer on the basis of the

credit 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 right of the consumer to be informed immediately

and free of charge in accordance with regulation 13(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

on paper or on another durable medium and all information shall be

equally prominent and by means of the Standard European Consumer

Credit Information form in the First Schedule

Provided that, the creditor shall be deemed to have

discharged the obligation of providing information under this

regulation and the information under regulation 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 regulation Pre-contractual

information

4(2)(c) the creditor shall provide the consumer with

relating to

arrangements

agreed by the

(a) the information provided for under sub-regulation

consumer and

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

creditor in

respect to

deferred

payments.

(b) the amount, number and frequency of payments to be

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

which payments shall 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 such compensation shall 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 (3) months, it shall be regulated by

sub-regulation (1).

(5) If the agreement has been concluded at the request of the

consumer 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 in accordance

with regulation 15 in so far as such regulation is applicable.

Notwithstanding regulation 5(2)(f), in relation to credit

agreements in the form of an overdraft facility and where the credit has

to be repaid within one (1) month, 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 regulation 10(1)(c), (e) and (g).

(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 said

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.

(1) A European creditor who intends to or has entered

into a credit agreement with a consumer in Malta, shall have access

under the same conditions as a 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 or a European creditor

for access to the said database shall not be conditioned in a

discriminatory manner but 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

Regulation (EU) 2016/679 of the European Parliament and of the

Council of 27 April 2016 on the protection of natural persons with

regard to the processing of personal data and on the free movement of

such data, and repealing Directive 95/46/EC (General Data Protection

Regulation) and the Data Protection Act, as applicable.

(1) The consumer shall be entitled to receive, free of Right to receive

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

agreement.

agreement.

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

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

conclusion of the credit agreement with the consumer.

(3)

Upon conclusion of the consumer credit agreement, all

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

agreement.

(1) The consumer credit agreement referred to in Content of

regulation 14(3) shall be drawn up in writing or on a durable medium consumer

agreement.

and shall specify, in a clear and concise manner, the following

(a) the information listed under regulation 9(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 that 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, which 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 shall remain valid only until such time as the

borrowing rate or the additional costs are changed in

accordance with the credit agreement;

(e) an indication, where applicable, that the consumer

may, at any time, upon demand, be requested to repay the

amount of credit in full;

(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 20(3)(b); and

(iii) the amount of interest payable per day;

(h) information concerning the rights resulting in

accordance with regulations 21 and 22 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 shall

be payable by the consumer.

(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 stipulated in the credit

agreement or in an ancillary agreement annexed thereto, the

information listed 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) 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.

(4) 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 conditions stipulated in the credit

agreement or in an ancillary agreement, the information required in

accordance with sub-regulation (1) or sub-regulation (5), as applicable,

shall include 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.

(5) In the case of a credit agreement which takes the form of an

overdraft facility where credit has to be repaid on demand or within

three (3) months, 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

Provided that if different borrowing rates apply in

different circumstances, the information in this paragraph shall

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.

(1) Where applicable, the consumer shall be informed of

any change in the borrowing rate, on paper or another durable medium,

before the change enters into force. The information shall state the

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

new borrowing rate and, if the number or frequency of the payments

changes, the details thereof.

(2) Notwithstanding sub-regulation (1), the parties may agree

in the credit agreement that the information referred to in sub-

regulation (1) is to be given to the consumer periodically where all of

the following conditions are fulfilled

(a) the change in the borrowing rate is caused by a

change in a reference rate;

(b) 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

(c) the information concerning the new reference rate is

also kept available in the premises of the creditor.

Without prejudice to other obligations provided for in these

regulations, prior to modifying the terms and conditions of the credit

agreement, the creditor 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 the filing of any such

complaint;

(e) the name and address of the Arbiter for Financial

Services as established in accordance with the Arbiter for Cap. 555.

Financial Services Act before whom the consumer may submit

the said complaint.

(1) Where the credit agreement covers credit in the form Obligations in

connection with

of an overdraft facility

credit

agreements in

the form of an

(a) the consumer shall be entitled to be kept regularly overdraft

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

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) in the event of a change in the borrowing rate or in

any charges payable, the provisions of regulation 16 shall apply.

(1) A consumer shall be entitled to terminate an open-end Right to

terminate an

credit agreement at any time and free of charge.

open-end credit

agreement.

(2) A credit agreement may however provide for a period of

notice not exceeding one (1) month before termination by the

consumer.

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

terminate an open-end consumer credit agreement by giving the

consumer not less than two (2) months’ notice in writing or on a

durable medium.

(4) If provided for in the credit agreement, a creditor may, for

objectively justified reasons terminate the right of the consumer to

drawdown credit under an open-end consumer credit agreement

Provided that, 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 the

credit granted, or that there is a significant risk that the consumer shall

be unable to fulfil his obligation to pay the credit.

(5) In the event of a termination in accordance with sub-

regulation (4), the creditor shall inform the consumer of the

termination and the reasons for it on paper or on another durable

medium, where possible before the termination and at the latest

immediately thereafter, unless the provision of information would be

contrary to public policy or public security or is deemed to be

unlawful.

(1) The consumer has a right to withdraw from a credit

agreement without providing any reasons.

(2) The right of the consumer to withdraw from a credit

agreement shall 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 regulation 15 if that day is later than the date referred to in

paragraph (a).

(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 accordance with the information given to the

consumer under regulation 15(1)(g) by means which may be

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

been satisfied 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; and

(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 not 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) Regulations 7 and 8 of the Distance Selling (Retail S.L. 330.07.

Financial Services) Regulations shall not apply to sub-regulations (1)

to (4).

(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 confirmation by the Notary Public that the consumer is

guaranteed the rights provided for under regulations 9 and 15.

(1) Where the consumer has exercised a right of Right of

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

pursue claim

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

against grantor

of credit.

(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 where 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) The consumer shall have the right to discharge his

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

before the agreed termination.

(2)

In the event of early repayment of credit

(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 in accordance with sub-

regulation (2)(b) may not exceed

(a) one percent (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 (1) year; and

(b) zero point five percent (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 (1) year.

(4) (a) The limitations in accordance with 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) The consumer may claim a corresponding reduction to the

compensation claimed by the creditor if the compensation claimed

exceeds the loss actually suffered

Provided that the loss suffered shall consist of the

difference between the initial agreed interest rate and the interest rate

at which the creditor may 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 in accordance with 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 twelve (12)

months.

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

of 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) Creditors shall have adequate policies and procedures Arrears and

to ensure that they make efforts to exercise, where appropriate, enforcement.

reasonable forbearance before enforcement proceedings are initiated.

Such forbearance measures shall take into account, among other

elements, the circumstances of the consumer and may consist of,

among other possibilities

(a)

a total or partial refinancing of a credit agreement;

(b) a modification of the existing terms and conditions of

a credit agreement, which may include among others

(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.

(2) Where the creditor is permitted to define and impose

charges on the consumer arising from the default, those charges shall

not be greater than is necessary to compensate the creditor for costs it

has incurred as a result of the default.

(1) Where the rights of the creditor under a credit

agreement are, or the credit agreement itself is, assigned to a third

party, the consumer shall be entitled to plead 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 Code,

which shall apply irrespective of anything to the contrary contained in

the credit agreement.

(2) Where the rights of the creditor are assigned in accordance

with sub-regulation (1), the consumer shall be entitled to be informed

of such an 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 open a

current account and the consumer is allowed an overrun, the agreement

shall also include the information referred to in regulation 10(1)(e).

The creditor shall in any case, provide that information on paper or

another durable medium on a regular basis.

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

of one (1) 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.

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

annual basis, to the present value of all commitments, such as

drawdowns, repayments and charges, future or existing, agreed by the

creditor and consumer, shall be calculated in accordance with the

mathematical formula established in Part I of the Third Schedule.

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

charge, 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

Provided that any charges payable by the consumer for

non-compliance with any of his commitments stipulated in the credit

agreement and charges other than the purchase price which, for

purchases of goods or services, he is obliged to pay, whether the

transaction is effected in cash or on credit, shall not be included in the

total cost of credit to the consumer for the purpose of calculating the

annual percentage rate of charge

Provided further that the costs referred to in sub-regulation

(2) 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.

(3) 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 shall fulfil their

obligations under the terms and by the dates specified in the

credit agreement; and

(b) the borrowing rate and other charges shall remain

fixed in relation to the initial level and shall 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.

(4) Where necessary the additional assumptions established in

the Third Schedule may be used in calculating the annual percentage

rate of charge.

(1) Without prejudice to any other power assigned to the

Authority in accordance with the Act, these regulations or any other

law, where a person falling within the scope of these regulations fails

to comply with any of the provisions of these regulations or any

Financial Institutions Rules issued thereunder which further

implement these regulations, the Authority may, by notice in writing

impose on such person an administrative penalty and other

administrative measures in accordance with article 23 of the Act, as

applicable.

(2) A right of appeal to the Financial Services Tribunal shall lie

from the decisions which the Authority shall take in accordance with

these regulations and the provisions of article 21 of the Act shall apply

mutatis mutandis.

(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) The provisions of these regulations shall not be

circumvented as a result of the way in which agreements are

formulated, in particular by integrating drawdowns or credit

agreements falling within the scope of these regulations into credit

agreements the character or purpose of which would make it possible

to avoid its application.

(4) Notwithstanding any provision in the credit agreement to

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

law of a country which is not a 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.