MT
Financial Institutions Act (Consumer Credit) Regulations, 2026
Table of Provisions (44)
Statutory Text (44 Articles)
Suppliment tal-Gazzetta tal-Gvern ta’ Malta Nru. 21,682, 3 ta’ Lulju, 2026 B 1973
L.N. 177 of 2026
FINANCIAL INSTITUTIONS ACT
(CAP. 376)
Financial Institutions Act (Consumer Credit) Regulations, 2026
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, scope,
and
Institutions Act (Consumer Credit) Regulations, 2026.
commencement.
(2) The scope of these regulations is to transpose the relevant
provisions of Directive (EU) 2023/2225 of the European Parliament
and of the Council of 18 October 2023 on credit agreements for
consumers and repealing Directive 2008/48/EC, and they shall be
interpreted and applied in accordance with the said Directive.
These regulations shall come into force on 20 th November
(3)
2026.
(regulation 9)
STANDARD EUROPEAN CONSUMER CREDIT INFORMATION
(*) This information is optional for the creditor.
Wherever "where applicable" is indicated, the creditor shall 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
shall be replaced with the corresponding information.
Key information
Part I
[Always on the first page of the form]
Creditor
[Identity]
Where applicable
Credit intermediary
[Identity]
Total amount of credit
This means the ceiling or the total
sums made available under the
credit agreement.
Duration of the credit agreement
The borrowing rate or, where
[percentage (%)
applicable, different borrowing
rates which apply to the credit
-
fixed, or
agreement
-
variable (with the index or
reference rate applicable to the initial
borrowing rate),
-
periods]
Annual percentage rate of charge
(APR)
This is the total cost expressed as
an annual percentage of the total
amount of credit.
The APR is there to help you
compare different offers.
Total amount you shall have to pay [Sum of total amount of credit and
total cost of credit to the consumer]
This means the amount of
borrowed capital plus interest and
possible costs related to your
credit.
Where applicable
The credit is granted in the form of
a deferred payment for specific
goods or specific services or is
linked to the supply of specific
goods or the provision of specific
services
Name of good/service
Cash price
Costs in the case of late payments You shall be charged [… (applicable
interest rate and arrangements for its
adjustment and, where applicable,
default charges)] for late payments.
Part II
[If following elements cannot be displayed in a prominent way
on one page, they shall be displayed in the first part of the form on the
second page]
Instalments and, where
You shall have to pay the following
appropriate, the order in which
instalments shall be allocated
[The amount, number and frequency
of payments to be made by the
consumer]
Interest and/or charges shall be
payable in the following manner
Warning regarding the
consequences of missing or late
payments
Missing or late payments could
have severe consequences for you
(e.g. forced sale) and make it more
difficult for you to obtain credit in
the future.
Right of withdrawal
Yes/no
You have the right to withdraw
from the credit agreement within a
period of 14 calendar days.
Early repayment
Yes
You have the right to repay the
credit early at any time fully or
partially.
Where applicable
The creditor is entitled to
compensation in the case of early
repayment.
Creditor
Geographical address
Telephone number
Email address
Web address ( * )
Where applicable
Credit intermediary
Geographical address
Telephone number
Email address
Web address ( * )
Additional information about the credit agreement
1. Description of the main features of the credit product
The type of credit
The conditions governing the
[Where the credit agreement provides
drawdown
different ways of drawdown with
different charges or borrowing rates and
This means how and when you the creditor uses the assumption
established in Part II, paragraph (b) of
shall obtain the money.
the Third Schedule, include an
Where applicable
Other drawdown mechanisms indication that other drawdown
for the relevant type of credit mechanisms for the relevant type of
agreement may result in higher credit agreement may result in higher
annual percentage rates of
annual percentage rates of charge]
charge
Where applicable
Sureties required
[Kind of sureties]
This is a description of the
security to be provided by you in
relation to the credit agreement.
Where applicable
Repayments do not give rise to
immediate amortisation of the
capital.
Where applicable
The price was personalised on
the basis of automated decision-
making.
2. Costs of the credit
Where applicable
The different borrowing rates that [percentage (%)
apply to the credit agreement
-
fixed, or
-
variable (with the index or
reference rate applicable to the
initial borrowing rate),
-
periods,
-
conditions governing the
application of each borrowing rate,
-
periods, conditions and
procedures for changing each
borrowing rate]
Representative example illustrating [Percentage (%) a representative
the annual percentage rate of
example mentioning all the
charge (APR) and the total amount assumptions used for calculating the
payable by the consumer
annual percentage rate of charge to
be set out here]
Is it compulsory, in order to obtain Yes/no [if yes, specify the kind of
the credit or to obtain it on the
insurance]
terms and conditions marketed, to
take out
Yes/no [if yes, specify the kind of
-
an insurance policy securing ancillary service]
the credit, or
-
another ancillary service
contract?
If the costs of these services are not
known by the creditor, they are not
included in the APR.
Related costs
Where applicable
Charges for maintaining one or
more accounts which are required
for recording both payment
transactions and drawdowns
Where applicable
Amount of costs for using a
specific means of payment (e.g. a
credit card)
Where applicable
Any other costs deriving from the
credit agreement
Where applicable
Conditions under which the
abovementioned costs related to
the credit agreement can be
changed
Where applicable
Obligation to pay notarial fees
3. Other important legal aspects
Where applicable
The creditor is entitled to
[Determination of the compensation
compensation in the case of early (calculation method) in accordance
repayment
with regulation 29]
Consultation of a database
The creditor shall inform you
immediately and without charge of
the result of consulting a database,
if a credit application is rejected
on the basis of such a consultation.
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 applies if the creditor is
willing, at the time of your request,
to proceed to the conclusion of the
credit agreement with you.
The information contained in this
Where applicable
The period of time during which
form is valid from […] until […].
the creditor is bound by the pre-
contractual information
Concerning redress
[The out-of-court complaint and
redress mechanism for the consumer
and how to access it]
You have the right to access an
out-of-court complaint and redress
mechanism.
Warning regarding the legal and
financial consequences of non-
compliance
Non-compliance with the
commitments linked to the credit
agreement other than late or
missed payments could have severe
consequences for you.
Repayment schedule
[Repayment schedule containing all
payments and repayments to be
made by the consumer over the
duration of the credit agreement,
including the payments for any
ancillary services]
Where applicable
4. Additional information in the case of the distance
marketing of financial services
(a)
Concerning the creditor
Where applicable
Representative of the creditor in
[Identity]
your Member State of residence
[Geographical address to be used
by the consumer]
Address
Telephone number
E-mail address
Web address (*)
Where applicable
Registration
[The trade register in which the
creditor is entered and their
registration number or an
equivalent means of identification
in that register]
Where applicable
The supervisory authority
(b) Concerning the credit
agreement
Where applicable
Exercise of the right of
[Practical instructions for
withdrawal
exercising the right of withdrawal
indicating, 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
not exercising the right of
withdrawal]
Where applicable
The law taken by the creditor as a
basis for the establishment of
relations with you before the
conclusion of the credit
agreement
Where applicable
[Relevant clause to be set out here]
Clause stipulating the law
applicable to the credit agreement
and/or the competent court
Where applicable
Information and contractual terms
Language regime
shall be supplied in [specific
language]. With your consent, we
intend to communicate in [specific
language/languages] during the
duration of the credit agreement.
(1)
In these regulations, unless the context otherwise Interpretation.
requires
"Act" means the Financial Institutions Act;
"advisory services" means personal recommendations
made by a creditor or credit intermediary as defined herein, to a
consumer, in respect of one (1) or more transactions relating to
credit agreements and which constitute a separate activity from
the granting of credit or from the services provided by a credit
intermediary, as applicable;
"ancillary service" means a service offered to the consumer
in conjunction with the credit agreement;
''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;
"competent authority" means the Malta Financial Services
Authority established by the Malta Financial Services Authority
Act;
"consumer" means a natural person who is acting either in
his own personal capacity or for the purposes of carrying out his
trade, business or profession;
''Consumer Credit Directive'' means the Directive (EU)
2023/2225 of the European Parliament and of the Council of 18
October 2023 on credit agreements for consumers and repealing
Directive 2008/48/EC, as may be amended from time to time and
includes any binding legal instruments, guidelines and other
measures that have been or may be issued thereunder;
"creditor" means a company which holds a licence issued
by the competent authority in accordance with article 5 of the
Act, by virtue of which it is licensed to grant, or promise to grant
credit
Provided that for the avoidance of doubt, a creditor as
defined herein shall not be subject to the admission process under
the Consumer Credit Intermediaries (Admission) Regulations;
"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
registered with the competent authority in accordance with
Consumer Credit Intermediaries (Admission) Regulations 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 or other pre-contractual administration 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;
"Credit Intermediaries Rules" means rules applicable to
credit intermediaries and other persons as specified therein,
which may be issued by the competent authority under these
regulations;
"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 in accordance with the Payment Services Directive or the
Electronic Money Directive, as applicable;
''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;
"General Data Protection Regulation" means 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);
"independent debt advisory services" means personalised
assistance of a technical, legal or psychological nature provided
by independent professional operators which are not creditors or
credit intermediaries as defined herein or credit purchasers or
credit servicers as defined in the Credit Servicers and Credit Cap. 645.
Purchasers Act;
"Member State" shall have the same meaning as assigned to
it in the Act;
"open-end credit agreement" means a credit agreement
without a fixed duration and includes credits that must be repaid in
full within, or after a specified period but which, once repaid,
become available to be drawn down again;
"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, but which are not defined
herein, shall have the same meaning as assigned to them in the said
Directive.
(regulation 10)
EUROPEAN CONSUMER CREDIT INFORMATION FORM
(1)
overdrafts
(2)
debt conversion
(*) This information is optional for the creditor.
Wherever "where applicable" is indicated, the creditor shall 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 shall be replaced with the corresponding information.
Part I
[Always on the first page of the form]
Creditor
[Identity]
Where applicable
Credit intermediary
[Identity]
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
The borrowing rate or, where
[percentage (%)
applicable, different borrowing
rates which apply to the credit
-
fixed, or
agreement
-
variable,
-
periods]
Annual percentage rate of charge
(APR)
This is the total cost expressed as
an annual percentage of the total
amount of credit.
The APR is there to help you
compare different offers.
The total amount you shall have
[Sum of total amount of credit and
to pay
total cost of credit to the consumer]
This means the amount of
borrowed capital plus interest
and possible costs related to your
credit.
Where applicable
The credit is granted in the form
of a deferred payment for specific
goods or specific services or is
linked to the supply of specific
goods or the provision of specific
services
Name of good/service
Cash price
Costs in the case of late payments You shall be charged […
(applicable interest rate and
arrangements for its adjustment
and, where applicable, default
charges)] for late payments.
Part II
[If the following elements cannot be displayed in a prominent
way on one page, they shall be displayed in the first part of the form on
the second page]
Instalments and, where
You shall have to pay the
appropriate, the order in which
following
instalments shall be allocated
[The amount, number and
frequency of payments to be made
by the consumer]
Interest and/or charges shall be
payable in the following manner
Warning regarding the
consequences of missing or late
payments
Missing or late payments could
have severe consequences for you
(e.g. forced sale) and make it
more difficult for you to obtain
credit in the future.
Right of withdrawal
Yes/no
Early repayment
You have the right to repay the
credit early at any time fully or
partially.
Where applicable
The creditor is entitled to
compensation in the case of early
repayment.
Creditor
Geographical address
Telephone number
Email address
Web address ( * )
Where applicable
Credit intermediary
Geographical address
Telephone number
Email address
Web address ( * )
Additional information about the credit agreement
1. Description of the main features of the credit product
The type of credit
Where applicable
Indication that the consumer may
be requested to repay the amount
of the credit in full at any time
Where applicable
The price was personalised on the
basis of automated decision-
making.
2. Costs of the credit
Where applicable
The different borrowing rates that [percentage (%)
apply to the credit agreement
-
fixed, or
-
variable (with the index or
reference rate applicable to the
initial borrowing rate),
-
periods
-
conditions governing the
application of each borrowing
rate]
Representative example
[percentage (%) a representative
illustrating the annual percentage example mentioning all the
rate of charge (APR) and the total assumptions used for calculating
amount payable by the consumer the annual percentage rate of
charge to be set out here]
[The costs applicable from the time
Where applicable
Costs
the credit agreement is concluded]
Where applicable
The conditions under which those
costs may be changed
3. Other important legal aspects
Termination of the credit
[The conditions and procedure for
agreement
terminating the credit agreement]
[Determination of the
Where applicable
The creditor is entitled to
compensation (calculation method)
compensation in the case of early in accordance with regulation 29]
repayment
Consultation of a database
The creditor must inform you
immediately and without charge
of the result of consulting a
database, if a credit application is
rejected on the basis of such a
consultation.
The information contained in this
Where applicable
The period of time during which form is valid from […] until […].
the creditor is bound by the pre-
contractual information
Concerning redress
[The out-of-court complaint and
redress mechanism for the
You have the right to access an consumer and how to access it]
out-of-court complaint and
redress mechanism.
Warning regarding the legal and
financial consequences of non-
compliance
Non-compliance with the
commitments linked to the credit
agreement other than late or
missed payments could have
severe consequences for you.
Repayment schedule
[Repayment schedule containing
all payments and repayments to be
made by the consumer over the
duration of the contract, including
those payments for any ancillary
services]
Where applicable
4. Additional information in the case of the distance
marketing of financial services
(a)
Concerning the creditor
[Identity]
Where applicable
Representative of the creditor in
your Member State of residence
[Geographical address to be used
by the consumer]
Address
Telephone number
E-mail address
Web address (*)
Where applicable
Registration
[The trade register in which the
creditor is entered and their
registration number or an
equivalent means of identification
in that register]
Where applicable
The supervisory authority
(b) Concerning the credit
agreement
Where applicable
Exercise of the right of
[Practical instructions for
withdrawal
exercising the right of withdrawal
indicating, inter alia, the
withdrawal period, the address to
which notification of exercise of
the right of withdrawal should be
sent and the consequences of
not exercising the right of
withdrawal]
Where applicable
The law relied upon by the
creditor as a basis for establishing
a relationship with you prior to
the conclusion of the credit
agreement
Where applicable
[Relevant clause to be set out here]
Clause stipulating the law
applicable to the credit agreement
and/or the competent court
Where applicable
Information and contractual terms
Language regime
shall be supplied in [specific
language]. With your consent, we
intend to communicate in [specific
language/languages] during the
duration of the credit agreement.
(1) The competent authority established by article 3 of
the Malta Financial Services Authority Act shall be the designated
competent authority in Malta responsible for the implementation of the
Consumer Credit Directive, insofar as applicable to creditors and credit
intermediaries defined herein.
(2) The competent 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 Credit Intermediaries Rules and Financial
Institutions Rules made thereunder.
(3) For the better implementation of the Consumer Credit
Directive, the competent authority may exercise any of the powers
assigned to it under the Act and may from time to time, issue and
publish Credit Intermediaries Rules and Financial Institutions Rules,
and such rules shall be binding on creditors and other persons as may
be specified therein.
(4) The competent authority shall promote measures that
support the education of consumers in relation to responsible
borrowing and debt management, in relation to credit agreements.
Such measures may include providing consumers with clear and
general information on the credit granting process in order to guide
them, in particular those who take out, particularly by means of digital
tools, consumer credit for the first time.
(regulation 9)
Part 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,
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. A month is presumed to have 30,41666 days
(i.e. 365/12) regardless of whether or not it is a leap year.
Where intervals between dates used in the calculations
cannot be expressed as a whole number of weeks, months or
years, the intervals shall be expressed as a whole number of one
of those periods in combination with a number of days. When
using days
(i) every day shall be counted, including weekends
and holidays;
(ii) equal periods and then days shall be counted
backwards to the date of the initial drawdown;
(iii) the length of the period of days shall be
obtained excluding the first day and including the last day
and shall be expressed in years by dividing this period by
the number of days (365 or 366) of the complete year
counted backwards from the last day to the same day of the
previous 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 can be positive or negative, in
other words either paid or received during periods 1 to n,
expressed in years, i.e.
where S is the present balance of flows. If the aim is to
maintain the equivalence of flows, the value of S shall be zero.
Part II
The additional assumptions for calculating the APR shall be as
follows.
(a) Where 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) Where a credit agreement gives the consumer
freedom of drawdown in general but imposes, amongst the
different ways of drawing down, 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 fixed in the credit
agreement and in accordance with those drawdown limits.
(c) Where a credit agreement provides different ways of
drawing down 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 that 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 APR 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 (1)
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, starting 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 set out in the
credit agreement.
For the purposes of this paragraph, an open-end credit
agreement is a credit agreement without a fixed duration and
includes credits that 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 credit agreements as referred to in the assumptions
established in paragraphs (d) and (e)
(i) where 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) where the interval between the date of initial
drawdown and the date of the first payment to be made by
the consumer cannot be ascertained, it shall be assumed to
be the shortest interval.
(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
those dates and conditions 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, starting with the date
of the first repayment of capital, and where 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) Where the ceiling applicable to the credit has not yet
been agreed, shall be assumed to be €1,500.
(i) Where 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 credit agreements for consumers for which a
fixed borrowing rate is agreed for 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 APR 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 APR, based on the
value of the agreed indicator at that time.
(1) These regulations shall apply to credit agreements
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 to 5, 17 to 19, 25, 31, and 34 to 38
shall apply to an overrunning;
(b) only regulations 1 to 5, 7, 11, 19, 20, 21(1)(a)(a) to
(h), (l) and (r), 21(3), 23, 25, regulation 28 to 35, 37 and 38 shall
apply to credit agreements between the creditor and the
consumer in respect of deferred payment or repayment methods,
where the consumer is already in default or is likely to default on
the initial credit agreement and where the following conditions
are fulfilled
(i) the arrangement is likely to avert the possibility
of legal proceedings concerning the default of the
consumer; and
(ii) the consumer would not, by entering into the
arrangement, be subject to terms less favourable than those
stipulated in the initial credit agreement;
(c) only regulations 7(4)(d), (e) and (f), 10(2), 11(4), and
21(3) shall apply to one or more of the following credit
agreements
(i) credit agreements involving a total amount of
credit of less than two hundred euro (€200);
(ii) credit agreements where credit is granted free
of interest and without any other charges; or
(iii) credit agreements under the terms of which
credit has to be repaid within three (3) months and only
insignificant charges are payable.
(regulation 33)
Minimum Knowledge and Competence Requirements
1. The minimum knowledge and competence requirements for
creditors’ and credit intermediaries’ staff shall include an appropriate
knowledge and level of competence in the following areas
(a) credit products falling within the scope of these
regulations in accordance with regulation 4 and the ancillary
services typically offered with them;
(b) the laws related to consumer credit agreements, in
particular consumer protection;
(c) in relation to over-indebtedness and consideration of
the clients’ future financial planning;
(d) business ethics standards, consequences resulting
from non-disclosure during the application process and
consequences due to events of default;
(e) appropriate
knowledge
of
the
consumer’s
creditworthiness assessment process or, where applicable,
competence in assessing the consumer’s creditworthiness.
2. Creditors and credit intermediaries shall be responsible for
ensuring compliance with the appropriate level of knowledge and
competence on the basis of
(a) professional qualifications, for example diplomas, degrees,
training, competency tests; or
(b) professional experience, which may be defined as a
minimum number of years working in areas related to the
manufacturing, the offering and the granting of credit agreements, the
carrying out of credit intermediation activities and the provision of
advisory services as well as in relation to consumer rights in the area
of their trade.
€2.79
Without prejudice to regulation 4, these regulations shall Non-
applicability.
not apply to credit agreements
(a)
entered into before 20th November 2026
Provided that open-end credit agreements which were
entered into before 20th November 2026 shall be regulated by
regulations 23, 24, 25(2), 28, and 36, and the creditor shall in any
case provide the consumer with that information on paper or
another durable medium chosen by the consumer and specified
in the agreement to open a current account, on a regular basis;
(b) which are secured either by a mortgage or by another
comparable security commonly used in a Member State on
immovable property or secured 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,
including premises used for trade, business or profession;
(d) involving a total amount of credit of more than one
hundred thousand euro (€100,000)
Provided that, notwithstanding sub-regulation (2)(d),
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 one hundred
thousand euro (€100,000);
(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 only be deemed to exist if it is so decided
unilaterally by the creditor;
(f) 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;
(g) which are concluded with European investment firms
as defined in article 2 of the Investment Services Act or with
banks or credit institutions or electronic money institutions as
defined in article 2 of the Banking Act for the purpose of
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;
(h) which are the outcome of a settlement reached in
court or before another statutory authority;
(i) which relate to the deferred payment, free of charge,
of an existing debt;
(j)
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 such pledged item;
(k) 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; and
(l)
in the form of deferred debit cards
Provided that the terms of which, the credit has to be
repaid is within forty (40) days and which are free of interest
with only limited charges for the provision of the payment
service.
(1) A creditor shall take all the necessary steps to ensure Obligations of
creditors and
full compliance with these regulations.
credit
intermediaries.
(2) Unless otherwise provided, the obligations of the creditor
shall equally apply to a European creditor, and a credit intermediary
Provided that a credit intermediary shall be required to
(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 intermediary;
(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.
(3) A creditor or credit intermediary may be requested by the
competent authority to provide the necessary evidence of compliance
with knowledge and competence requirements as established in any
regulations and rules issued thereunder.
(4) All information provided by creditors to consumers in
relation to these regulations shall be provided free of charge regardless
of the media used to provide such information.
(5) The conditions to be fulfilled by the consumer for being
granted credit shall not discriminate against consumers legally resident
in the European Union on the ground of their nationality or place of
residence or on any ground as referred to in Article 21 of the Charter
of Fundamental Rights of the European Union, when those consumers
request, conclude or hold a credit agreement within the Union
Provided that sub-regulation (5) shall be without prejudice
to the possibility of offering different conditions of access to a credit
where those different conditions are duly justified by objective criteria.
(1) Without prejudice to Title I of Part VIII of the
Consumer Affairs Act, advertising concerning credit agreements shall
be fair, clear and not misleading and wording in such advertising and
marketing communications that may create false expectations for a
consumer regarding the availability or the cost of credit or the total
amount payable by the consumer shall be prohibited.
(2) Advertising concerning credit agreements shall include a
clear and prominent warning to make consumers aware that borrowing
costs money, using wording such as ‘Caution! Borrowing money costs
money’ or an equivalent wording.
(3) Without prejudice to Title I of Part VIII of 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, shall include standard information by means of a
representative example in accordance with sub-regulation (4).
(4) The representative example referred to in sub-regulation
(3) 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;
(d)
the duration of the agreement, if applicable;
(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; and
(f)
the total amount payable by the consumer and the
amount of the instalments, if applicable
Provided that in specific and justified cases where the
medium used to communicate the standard information referred
to in sub-regulation (4) does not allow the information to be
visually displayed, sub-regulation (4)(e) and (f) shall not apply
Provided further that, in specific and justified cases
and without prejudice to Title I of Part VIII of the Consumer
Affairs Act, where the electronic medium used to communicate
the standard information referred to in sub-regulation (4) does
not allow such information to be visually displayed in a
prominent and clear manner, the consumer shall be able to access
the information referred to in sub-regulation (4)(e) and (f) by
means of clicking, scrolling or swiping.
(5) An advertisement concerning credit agreements shall
include a clear and concise statement which is advertised prominently
in respect of any obligation to enter into a contract in respect of an
ancillary service relating to the credit agreement, where
(a) the conclusion of that service is compulsory in order
to obtain the credit or to obtain it on the terms and conditions
advertised; and
(b) the cost of that service cannot be determined in
advance.
(6) Creditors shall be prohibited from advertising for credit
products which
(a) encourage consumers to seek credit by suggesting
that credit would improve the financial situation of those
consumers;
(b) specify that outstanding credit agreements or
registered credit in databases have little or no influence on the
assessment of a credit application;
(c) falsely suggest that credit leads to an increase in
financial resources, constitutes a substitute for savings or can
raise a consumer’s living standards;
(d) highlight the ease or speed with which credit can be
obtained; or
(e)
offer ‘grace periods’ of more than three (3) months
for the repayment of credit instalments.
Creditors shall make available to consumers, clear and
comprehensible general information about credit agreements at all
times on paper or on another durable medium chosen by the consumer
and shall include at least the following
(a) the identity, geographical address, telephone number
and email address of the issuer of the information;
(b)
the purpose for which the credit may be used;
(c)
the possible duration of the credit agreement;
(d) types of available borrowing rate, indicating whether
fixed or variable or both, with a short description of the
characteristics of a fixed and variable rate, including related
implications for the consumer;
(e) a representative example of the total amount of credit,
the total cost of the credit to the consumer, the total amount
payable by the consumer and the annual percentage rate of
charge;
(f) an indication of possible further costs, not included in
the total cost of the credit to the consumer, to be paid in
connection with a credit agreement;
(g) the range of different options available for
reimbursing the credit to the creditor, including the number,
frequency and amount of the regular repayment instalments;
(h) a description of the conditions directly relating to
early repayment;
(i)
a description of the right of withdrawal;
(j) indication of ancillary services the consumer is
obliged to acquire in order to obtain the credit or to obtain it on
the terms and conditions marketed and, where applicable, a
clarification that the ancillary services may be purchased from a
provider that is not the creditor; and
(k) a general warning concerning possible consequences
of non-compliance with the commitments linked to the credit
agreement
Provided that where the general information is made
available at the premises of the creditor, such information shall
be made available to consumers at least on paper.
(1) Creditors shall, in good time before the consumer is Obligation to
bound by any credit agreement or offer, provide the consumer with provide
contractual
clear and comprehensible pre-contractual information needed to take information.
an informed decision on whether to conclude a credit agreement on the
basis of the credit terms and conditions offered by the creditor, and
where applicable, the preferences expressed and information supplied
by the consumer
Provided that such pre-contractual information shall also be
provided to the consumer when means of distance communication is
used as defined in the Distance Selling (Retail Financial Services) S.L. 330.07.
Regulations.
(2) When the pre-contractual information referred to in sub-
regulation (1) is provided less than one (1) day before the consumer is
bound by the credit agreement or offer, the creditor shall send a
reminder to the consumer of the possibility to withdraw from the credit
agreement and of the procedure to be followed for withdrawing in
accordance with regulation 26
Provided that the reminder shall be provided on paper or on
another durable medium chosen by the consumer and specified in the
credit agreement, between one (1) and seven (7) days after the
conclusion of the credit agreement or, where applicable, the
submission of the binding credit offer by the consumer.
(3) The creditor shall be deemed to have fulfilled the
information requirements in sub-regulation (1) and regulation 5(1)(a)
and (b) of the Distance Selling (Retail Financial Services) Regulations
when the pre-contractual information referred to in sub-regulation (1)
has been provided on paper or on another durable medium chosen by
the consumer by means of the Standard European Consumer Credit
Information Form provided in the First Schedule and with all the
information provided in the form being equally prominent.
(1) The pre-contractual information to be disclosed to Content of pre-
consumers under regulation 9(1) shall specify all of the following contractual
information.
elements in a prominent way in Part I of the form contained in the First
Schedule, on one (1) page
(a) the identity of the creditor and, where applicable, of
the credit intermediary involved;
(b) the total amount of credit to be provided under the
agreement and the conditions governing the drawdown of credit;
(c)
the duration of the credit agreement;
(d) the borrowing rate, or all borrowing rates if different
borrowing rates apply in different circumstances;
(e) the annual percentage rate of charge and the total
amount payable by the consumer;
(f) in the case of a credit in the form of deferred payment
for specific goods or services and in the case of linked credit
agreements, the specific goods or services and their cash price;
(g) the costs in the case of late payments, that is, the
interest rate applicable in the case of late payments and the
arrangements for its adjustment and, where applicable, any
charges payable for default;
(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 purposes of
reimbursement;
(i) warning regarding the consequences of missing or
late payments;
(j) the existence or absence of a right of withdrawal and,
where applicable, the withdrawal period;
(k) the existence of a right of early repayment and, where
applicable, information concerning the creditor’s right to
compensation; and
(l) the geographical address, telephone number and
email address of the creditor as well as, where applicable, the
geographical address, telephone number and email address of the
credit intermediary involved
Provided that in the event that all the elements
referred to in sub-regulation (1) cannot be displayed in a
prominent way on one (1) page, they shall be displayed in Part I
of the form contained in the First Schedule, on two (2) pages at
most, in which case, the information referred to in sub-regulation
(1)(a) to (g) shall be displayed on the first page of the form.
(2) The pre-contractual information referred to in regulation 8
shall specify all of the following elements, which shall be displayed
after, and clearly separated from the elements listed in sub-regulation
(a)
the type of credit;
(b)
the conditions governing the breakdown;
(c) where different borrowing rates apply in different
circumstances, the conditions governing the application of each
borrowing rate and, where available, any index or reference rate
applicable to each initial borrowing rate, as well as the periods,
conditions and procedures for changing each borrowing rate;
(d) where a credit agreement provides different ways of
drawdown with different charges or borrowing rates and the
creditor uses the assumption provided in the Third Schedule, an
indication that other drawdown mechanisms for the relevant type
of credit agreement may result in higher annual percentage rates
of charge;
(e)
the charges for maintaining one or more compulsory
accounts recording both payment transactions and drawdowns,
the charges for using a means of payment for both payment
transactions and drawdowns, any other charges deriving from the
credit agreement, and the conditions under which any of those
charges may be changed, where applicable;
(f) a representative example illustrating the annual
percentage rate of charge and the total amount payable by the
consumer, referring to all of the assumptions used in order to
calculate that rate, provided that 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;
(g)
any costs payable by the consumer to a notary on
conclusion of the credit agreement, where applicable;
(h) the obligation, if any, to enter into an ancillary service
agreement relating to the credit agreement, where the conclusion
of such agreement is compulsory in order to obtain the credit or
to obtain it on the terms and conditions marketed;
(i)
the sureties required, where applicable;
(j)
information concerning the way in which the
creditor’s compensation shall be determined in the event of early
repayment, where applicable;
(k) 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 his creditworthiness;
(l) the right of the consumer, as provided in sub-
regulation (8), to be supplied on request on paper or on another
durable medium and free of charge, with a copy of the draft
credit agreement, provided that the creditor, at the time of the
request, is willing to proceed to the conclusion of the credit
agreement;
(m) an indication that the price was personalised on the
basis of automated processing, including profiling, where
applicable;
(n) the period of time during which the creditor is bound
by the pre-contractual information provided in accordance with
this regulation, where applicable;
(o) the possibility for the consumer of having recourse to
an out-of-court complaint and redress mechanism and the
methods for having access to it;
(p) a warning and explanation regarding the legal and
financial consequences of non-compliance with the other
commitments linked to the specific credit agreement;
(q) a repayment schedule containing all payments and
repayments over the duration of the credit agreement, including
the payments and repayments for any ancillary services relating
to the credit agreement which are sold simultaneously, whereby
payments and repayments, in the event that different borrowing
rates apply in different circumstances, are based on reasonable
upward changes in the borrowing rate.
(3) The creditor shall ensure that the information displayed in
the form contained in the First Schedule shall
(a)
be consistent and clearly legible;
(b) take into account the technical restraints of the
medium on which it is displayed; and
(c) be displayed in an adequate and suitable way on the
different channels taking interoperability into account.
(4)
If the creditor provides the consumer with additional
information to that listed in sub-regulations (1) and (2), a separate
document shall be provided for this purpose and shall be annexed to
the form contained in the First Schedule.
(5) Where the credit agreement references a benchmark as
defined in regulation 2(1) of the Malta Financial Services Authority S.L. 330.10.
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.
(6) 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 in accordance with 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 such 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.
(7) 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) and (2), in particular in the case referred to in sub-
regulation (6), 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.
(8) Upon request from the consumer, the creditor and, where
applicable the credit intermediary shall, in addition to the form
contained in the First Schedule, provide the consumer free of charge
with a copy of the draft credit agreement on paper or on another
durable medium, provided that the creditor, at the time of the request,
is willing to proceed with the conclusion of the credit agreement with
the consumer.
(9) 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 creditor and, where
applicable, the credit intermediary shall in the pre-contractual
information referred to in sub-regulation (1) and (2) of regulation 9,
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 expressly.
(1) For credit agreements referred to in regulation
4(1)(c), the pre-contractual information referred to in regulation 10(1)
shall, by way of derogation from regulation 9(3), be provided on paper
or on another durable medium chosen by the consumer by means of
the European Consumer Credit Information Form provided in the
Second Schedule, and such information shall be clear, comprehensible
and all information provided in such form shall be equally prominent.
(2) The creditor shall be deemed to have fulfilled the
information requirements stipulated in sub-regulation (1) and
regulation 5(1)(a) and (b) of the Distance Selling (Retail Financial
Services) Regulations if the said creditor has supplied such form.
(3) For credit agreements referred to in regulation 4(1)(c), the
pre-contractual information referred to in regulation 10(1) shall, by
way of derogation from regulation 9(3), specify all of the following
elements, in a prominent way in Part I of the form contained in the
Second Schedule on one (1) page
(a) the identity of the creditor as well as, where
applicable, of the credit intermediary involved;
(b)
the total amount of credit;
(c)
the duration of the credit agreement;
(d) the borrowing rate, or all borrowing rates if different
borrowing rates apply in different circumstances;
(e) the annual percentage rate of charge and the total
amount payable by the consumer;
(f) in the case of a credit in the form of deferred payment
for specific goods or services and in the case of linked credit
agreements, the specific goods or services and their cash price;
(g) the costs in the case of late payments, that is, the
interest rate applicable in the case of late payments and the
arrangements for its adjustment and, where applicable, any
charges payable for default;
(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 purposes of
reimbursement;
(i) warning regarding the consequences of missing or
late payments;
(j)
the existence or absence of a right of withdrawal;
(k) the existence of a right of early repayment and, where
applicable, information concerning the creditor’s right to
compensation; and
(l) the geographical address, telephone number and
email address of the creditor as well as, where applicable, the
geographical address, telephone number and email address of the
credit intermediary involved
Provided that in the event that all the elements
referred to in sub-regulation (3) cannot be displayed in a
prominent way on one (1) page, they shall be displayed in Part I
of the form contained in the Second Schedule on two (2) pages at
most, and in such case, the information referred to in sub-
regulation (3) (a) to (g) shall be displayed on the first page of the
form
Provided further that 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 service to be provided
pursuant to regulation 5(1)(c)(ii) shall include at least the
elements referred to in sub-regulation (3) of this regulation and
the form contained in the Second Schedule shall be provided to
the consumer by the creditor on a durable medium immediately
after the conclusion of the credit agreement.
(4) The pre-contractual information referred to in sub-
regulation (1) shall specify all of the following elements, which shall
be displayed after, and clearly separated from the elements listed in
sub-regulation (3)
(a)
the type of credit;
(b) where different borrowing rates apply in different
circumstances, the conditions governing the application of each
borrowing rate, 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;
(c) a representative example illustrating the annual
percentage rate of charge and the total amount payable by the
consumer, referring to all of the assumptions used in order to
calculate such rate;
(d) the conditions and procedure for terminating the
credit agreement;
(e)
information concerning the way in which the
creditor’s compensation shall be determined in the event of early
repayment, where applicable;
(f)
an indication that the consumer may be requested to
repay the amount of credit in full at any time, where applicable;
(g) a reference to the right of the consumer to be
informed immediately and free of charge in accordance with
regulation 19(2), of the result of a database consultation carried
out for the purposes of assessing his creditworthiness;
(h)
an indication that the price was personalised on the
basis of automated processing, including profiling, where
applicable;
(i)
the period of time during which the creditor is bound
by the pre-contractual information provided in accordance with
this regulation, where applicable,;
(j) a reference to the possibility for the consumer of
having recourse to an out-of-court complaint and redress
mechanism and the methods for having access to it;
(k) a warning and explanation regarding the legal and
financial consequences of non-compliance with the other
commitments linked to the specific credit agreement; and
(l) a repayment schedule containing all payments and
repayments over the duration of the credit agreement, including
the payments and repayments for any ancillary services relating
to the credit agreement which are sold simultaneously, whereby
payments and repayments, in the event that different borrowing
rates apply in different circumstances, are based on reasonable
upward changes in the borrowing rate.
(5) The information displayed in the form contained in the
Second Schedule shall be consistent, clearly legible and shall take into
account the technical constraints of the medium on which it is
displayed, and the information shall be displayed in an adequate and
suitable way on the different channels, taking interoperability into
account.
(6) Upon request from the consumer, the creditor and, where
applicable, the credit intermediary shall, in addition to the form
contained in the Second Schedule, provide the consumer free of
charge, with a copy of the draft credit agreement, provided that the
creditor, at the time of the request, is willing to proceed to the
conclusion of the credit agreement with the consumer.
(7) This regulation 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 obligation of
the creditor or where applicable, the credit intermediary, to ensure that
the consumer receives the pre-contractual information referred to in
regulations 10 and 11.
Creditors, and where applicable, credit intermediaries shall Adequate
be required to provide free of charge and before concluding the credit explanations.
agreement, adequate explanations to the consumer on the proposed
credit agreements and any ancillary services which make it possible
for the consumer to assess whether the proposed credit agreements and
ancillary services are adapted to the needs and financial situation of
the consumer, including the following elements
(a)
the information referred to in regulations 6(2), 10 and
11;
(b) the essential characteristics of the credit agreement or
of the ancillary services proposed;
(c) the specific effects that the credit agreement or the
ancillary services proposed may have on the consumer, including
the consequences of payment default or late payment by the
consumer;
(d) where ancillary services are bundled with a credit
agreement, whether each component of the bundle can be
terminated separately and the implications for the consumer of
such termination.
Without prejudice to the provisions of the General Data
Protection Regulation and the Data Protection Act, as applicable,
creditors and credit intermediaries shall inform consumers in a clear
and comprehensible manner when they are presented with a
personalised offer that is based on automated processing of personal
data.
(1) Bundling practices shall be allowed whilst tying
practices shall be prohibited
Provided that without prejudice to the application of
competition law, creditors may request the consumer to open or
maintain a payment or savings account, where the only purpose of
such an account is one (1) of the following
(a)
to accumulate capital to repay the credit;
(b)
to service the credit;
(c)
to pool resources to obtain the credit;
(d) to provide additional security for the creditor in the
event of default.
(2) Creditors may require the consumer to hold a relevant
insurance policy related to the credit agreement, taking into account
proportionality considerations, and shall accept the insurance policy
from a supplier different to his preferred supplier where such insurance
policy has a level of guarantee equivalent to the one the creditor has
proposed, without modifying the conditions of the credit offered to the
consumer.
(3) In order for consumers to have additional time to compare
insurance offers related to credit agreements before purchasing an
insurance policy as referred to in sub-regulation (2), consumers have at
least three (3) days to compare insurance offers related to credit
agreements without such offers being changed, and consumers shall be
informed thereof
Provided that consumers may conclude an insurance policy
prior to the expiry of that three (3) day period if they explicitly so
request.
(1) Creditors and credit intermediaries shall not infer the Inferred
agreement of the consumer for the conclusion of any credit agreement agreement
the conclusion
or for the purchase of ancillary services presented through default of
agreement or the
options, such as pre-ticked boxes.
purchase of
ancillary
services.
(2) The agreement of the consumer to the conclusion of any
credit agreement or to the purchase of ancillary services presented
through boxes shall be given by an unambiguous and clear affirmative
act establishing a freely given, specific, informed and unambiguous
indication of the approval of the consumer to the content and substance
associated to such boxes.
(1) A creditor shall explicitly inform the consumer, in the Advisory
context of a given transaction, whether advisory services are being or services.
can be provided to the consumer.
(2) Prior to the provision of advisory services or the conclusion
of a contract for the provision of such services, creditors and, where
applicable, credit intermediaries shall provide the consumer with the
following information on paper or another durable medium chosen by
the consumer
(a) an indication of whether the recommendation shall be
based on only their own product range or on a wide range of
products from across the market in accordance with sub-
regulation (3)(c); and
(b) an indication of the fee payable by the consumer for
the advisory services or, where the amount of such fee cannot be
established at the time when the information is provided, the
method used for its calculation, where applicable
Provided that the aforementioned information may be
provided to the consumer in the form of additional pre-
contractual information which may be annexed to the form
contained in the First Schedule.
(3) Where advisory services are provided to consumers,
creditors and where applicable, credit intermediaries shall
(a) obtain the necessary information regarding the
financial situation, preferences and objectives of the consumer,
related to the credit agreement, in order for the creditor or the
credit intermediary to recommend credit agreements that are
suitable to the consumer;
(b) assess the financial situation and the needs of the
consumer on the basis of the information referred to in sub-
regulation (3)(a), which shall be up to date at the time of the
assessment, taking into account reasonable assumptions as to the
risks to the financial situation of the consumer over the term of
the recommended credit agreement;
(c) consider a sufficiently large number of credit
agreements in their product range and on that basis recommend
one (1) or more credit agreements from among that product
range that are suitable to the consumer’s needs, financial
situation and personal circumstances;
(d)
act in the best interests of the consumer; and
(e) give the consumer a record of the recommendation
provided on paper or on another durable medium chosen by the
consumer and specified in the contract for the provision of
advisory services.
(4) The use of the terms "advice" and "advisor" or similar
terms shall be prohibited when the advisory services are being
marketed and provided to consumers by creditors or, where applicable,
credit intermediaries.
(5) Creditors and where applicable, credit intermediaries shall
warn a consumer when a credit agreement may induce a specific risk
for the consumer considering the financial situation of the consumer.
(6) Notwithstanding the fact that advisory services may only
be provided by creditors and where applicable, credit intermediaries,
other persons may provide advisory services where the advisory
services are provided as follows
(a)
in an incidental manner in the course of a
professional activity that is regulated by legal or regulatory
provisions or a code of ethics which do not exclude the provision
of those services;
(b) in the context of management of existing debt by
insolvency practitioners and where that management activity is
regulated by legal or regulatory provisions;
(c) in the context of management of existing debt by
public or voluntary providers of independent debt advisory
services which do not operate on a commercial basis; or
(d) by persons that are authorised and supervised by
competent authorities.
The granting of credit to consumers shall be prohibited Ban on
unsolicited
without their prior request and explicit agreement.
granting of
credit.
(1) Prior to concluding a credit agreement, the creditor Obligation to
shall carry out a thorough assessment of the creditworthiness of the assess
creditworthiness
consumer, which assessment shall take appropriate account of factors of consumer.
relevant to verifying the prospect of the consumer meeting his
obligations under the credit agreement.
(2) Credit intermediaries shall accurately submit the necessary
information obtained from the consumer to the relevant creditor in
accordance with the Data Protection Act to enable the creditworthiness Cap. 586.
assessment to be carried out.
(3) The assessment of creditworthiness shall be carried out on
the basis of relevant and accurate information on the income and
expenses of the consumer and other financial and economic
circumstances which are necessary and proportionate to the nature,
duration, value and risks of the credit for the consumer
Provided that notwithstanding the fact that the information
may include evidence of income or other sources of repayment,
information on financial assets and liabilities, or information on other
financial commitments, such information shall not include special
categories of data referred to in Article 9 of the General Data
Protection Regulation and shall be obtained from relevant internal or
external sources including the consumer and, where necessary on the
basis of a consultation of a database referred to in regulation 19
Provided further that social networks shall not be
considered as an external source for the purpose of these regulations.
(4) The information obtained in accordance with sub-
regulation (3) shall be appropriately verified where necessary through
reference to independently verifiable documentation.
(5) The creditor shall establish procedures for the assessment
referred to in sub-regulation (1) and shall document and maintain such
procedures, including the information referred to in sub-regulation (3).
(6) Where the credit application is submitted jointly by more
than one (1) consumer, the creditor shall perform the creditworthiness
assessment on the basis of a joint repayment capacity of all the
consumers involved.
(7) The creditor shall only make credit available to consumers
where the result of the creditworthiness assessment indicates that the
obligations resulting from the credit agreement are likely to be met in
the manner required under such agreement, taking into account the
relevant factors described in sub-regulation (1).
(8) Where a creditor concludes a credit agreement with a
consumer, the creditor shall not subsequently cancel or modify the
credit agreement to the detriment of the consumer on the grounds that
the assessment of creditworthiness was incorrectly conducted
Provided that this sub-regulation shall not apply where it is
demonstrated that the consumer knowingly withheld or falsified the
information referred to in sub-regulation (3) that was provided to the
creditor.
(9) Where the creditworthiness assessment involves the use of
automated processing of personal data, the consumer shall be informed
by the creditor of the right to request and obtain from the creditor,
human intervention, consisting of the right to
(a) request and obtain from the creditor a clear and
comprehensible
explanation
of
the
assessment
of
creditworthiness, including on the logic and risks involved in the
automated processing of personal data as well as its significance
and effects on the decision;
(b) express the point of view of the consumer to the
creditor; and
(c) request a review of the assessment of the
creditworthiness and the decision on the granting of the credit by
the creditor.
(10) Where the credit application is rejected, the creditor shall
inform the consumer without delay of the rejection and, where
relevant, refer the consumer to easily accessible independent debt
advisory services
Provided that where applicable, the creditor shall be
required to inform the consumer of the fact that the assessment of
creditworthiness is based on automated processing of data and about
the right of the consumer to human assessment and the procedure for
contesting the decision.
(11) Where the parties agree to change the total amount of credit
after the conclusion of the credit agreement, the creditor is required to
reassess the consumers creditworthiness on the basis of updated
information before any significant increase in the total amount of
credit is granted.
(12) Creditors shall assess the creditworthiness of consumers on
the basis of consultation of the relevant database
Provided that the assessment of creditworthiness shall not
be based exclusively on the credit history of the consumer.
(1) A creditor making use of public and private databases Databases.
to assess the creditworthiness of consumers shall comply with the
applicable provisions of the General Data Protection Regulation and
the Data Protection Act, including any regulations made thereunder, Cap. 586.
and shall not process
(a) special categories of data as referred to in Article 9(1)
of the said Regulation; and
(b)
personal data processed from social networks.
(2) If the credit application is rejected on the basis of a
consultation of a database referred to sub-regulation (1), the creditor
shall inform the consumer immediately and free of charge of the result
of such consultation and of the particulars of the details of the database
consulted as well as the categories of data taken into account.
Credit agreements and any modifications of such Form of the
agreements shall be drawn up on paper or another durable medium and credit
agreement.
all contracting parties shall be provided with a copy of the credit
agreement.
(1) The credit agreement shall specify in a clear and Information to
be included in
concise manner all of the following elements
the credit
agreement.
(a)
the type of credit and a statement confirming that the
credit agreement is subject to the provisions of these regulations
and the Consumer Credit Directive;
(b) the identities, geographical address, telephone
numbers and email addresses of the contracting parties as well
as, where applicable, the identity and geographical address of the
credit intermediary involved;
(c) the total amount of credit and the conditions
governing the drawdown;
(d)
the duration of the credit agreement;
(e) in case of a credit in the form of deferred payment for
specific goods or services and in the case of linked credit
agreements, the specific goods or services and their cash price;
(f) the borrowing rate, or all borrowing rates where
different borrowing rates apply in different circumstances, the
conditions governing the application of each borrowing rate and,
where available, any index or reference rate applicable to each
initial borrowing rate, as well as the periods, conditions and
procedures for changing each borrowing rate;
(g) the annual percentage rate of charge and the total
amount payable by the consumer, calculated at the time that the
credit agreement is concluded and an indication of all
assumptions used in such calculation;
(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 purposes of
reimbursement;
(i) where capital amortisation of a credit agreement with
a fixed duration is involved, a reference to 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;
(j) where 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;
(k)
the charges for maintaining one (1) or more
compulsory accounts recording both payment transactions and
drawdowns, the charges for using a means of payment for both
payment transactions and drawdowns, any other charges deriving
from the credit agreement, and the conditions under which those
charges may be changed, where applicable;
(l) the interest rate applicable in the case of late
payments as applicable at the time of the conclusion of the credit
agreement and the arrangements for its adjustment and, where
applicable, any charges payable for default;
(m) a warning regarding the consequences of missing or
late payments;
(n) a statement that notarial fees shall be payable, where
applicable;
(o)
the sureties and insurance required, where applicable;
(p) the existence or absence of a right of withdrawal, the
withdrawal period, where applicable, and other conditions
governing the exercise thereof, including the durable medium to
be used for the notification, information concerning the
obligation of the consumer, to pay the capital drawn down and
the interest, and the amount of interest payable per day;
(q) the type of durable medium on which the consumer
chooses to receive the following
(i)
the reminder referred to in regulation 9(2),
where applicable;
(ii)
the information referred to in regulation 22;
(iii) the information on the change in the borrowing
rate referred to in regulation 23(1);
(iv) the information referred to in regulations 24(1)
and (2), where applicable; and
(v) the information on the termination of an open-
end credit agreement referred to in the proviso to regulation
28(1) and regulation 28(2), where applicable;
(r)
information concerning the rights provided in
regulation 27 as well as the conditions for the exercise of those
rights, where applicable;
(s)
a reference to the right of early repayment provided in
regulation 29, the procedure for early repayment, as well as
where applicable, information concerning the right of the
creditor to compensation and a transparent and comprehensible
explanation of how the compensation due to the creditor by the
consumer shall be calculated;
(t) the procedure that shall be followed in exercising the
right of termination of the credit agreement;
(u) the possibility of having recourse to an out-of-court
complaint and redress mechanism for the consumer and the
methods for having access to it;
(v)
other contractual terms and conditions, where
applicable;
(w) the name and address of the competent authority; and
(x) the relevant contact details of providers of debt
advisory services and a recommendation for the consumer to
contact such providers in the event of repayment difficulties
Provided that the information referred to in this sub-
regulation shall be clearly legible and adapted to take into
account the technical constraints of the medium on which it is
displayed.
(2) Where sub-regulation (1)(i) is applicable, 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
Provided that such amortisation table shall indicate the
payments owing and the periods and conditions relating to the
payment of such amounts and shall also contain a breakdown of each
repayment specifying the capital amortisation, the interest calculated
on the basis of the borrowing rate and, where applicable, any
additional costs
Provided further that where the borrowing rate is not fixed
or the additional costs may be changed under the credit agreement, the
amortisation table shall indicate, clearly and concisely, that the data
contained in the table shall remain valid only until such time as that
borrowing rate or those costs are changed in accordance with the credit
agreement.
(3) 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 credit agreement shall, in
addition to the information referred to in sub-regulation (1), 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 expressly.
Without prejudice to other obligations provided for in these Information
regulations, the creditor shall, prior to modifying the terms and regarding
modification of
conditions of the credit agreement, communicate the following the
agreement.
information to the consumer on paper or another durable medium
specified in the credit agreement
(a) a clear description of the proposed changes and,
where applicable, the need for consumer consent or an
explanation of the changes introduced by operation of law;
(b) the timescale 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; and
(e) the name and address of the competent authority
where such complaint may be submitted.
(1) Where creditors change borrowing rates of existing Changes in the
credit agreements, the creditor shall inform the consumer of any borrowing rate.
change in the borrowing rate on paper or another durable medium
specified in the credit agreement, in good time before the change
enters into force
Provided that the information shall include the amount of
the payments to be made after the entry into force of the new
borrowing rate and, where the number or frequency of the payments
changes, the particulars thereof.
(2) Notwithstanding sub-regulation (1), the information to be
provided to the consumer may be given periodically where all of the
following conditions are fulfilled
(a) the parties have agreed
on
such
periodical
information in the credit agreement;
(b) the change in the borrowing rate is caused by a
change in reference rate;
(c) the new reference rate is publicly available in a
timely manner by appropriate means; and
(d) the information concerning the new reference rate is
also available
(i)
at the premises of the creditor;
(ii) on the website of the creditor, if such a website
is available; and
(iii) on the mobile application of the creditor, if such
an application is available;
(1) Where a credit agreement has been granted in the
form of an overdraft facility, the creditor shall, throughout the duration
of the credit agreement, keep the consumer regularly, at least once per
month, informed by means of statements of account, on paper or
another durable medium specified in the credit agreement, containing
the following elements
(a)
the precise period to which the statement of account
(b)
the amounts and dates of drawdowns;
(c)
the balance from the previous statement and the date
(d)
the new balance;
(e) the dates and amounts of payments made by the
consumer;
(f)
the borrowing rate applied;
(g)
any charges that have been applied; and
(h)
the minimum amount to be paid by the consumer,
where applicable
Provided that the creditor shall also inform the
consumer, on paper or another durable medium specified in the
credit agreement, of increases in the borrowing rate or in any
charges payable, in good time before the change in question
enters into force.
(2) Notwithstanding sub-regulation (1), the information that
shall be provided to the consumer may be given periodically where all
of the following conditions are fulfilled
(a) the parties have agreed
on
such
periodical
information in the credit agreement;
(b) the change in the borrowing rate is caused by a
change in reference rate;
(c) the new reference rate is publicly available in a
timely manner by appropriate means; and
(d) the information concerning the new reference rate is
also available
(i)
at the premises of the creditor;
(ii) on the website of the creditor, if such a website
is available; and
(iii) on the mobile application of the creditor, if such
an application is available;
(3) The creditor shall notify the consumer in an agreed manner
of each reduction or cancellation of the overdraft facility at least thirty
(30) days prior to the day when the actual reduction or cancellation of
the overdraft facility takes effect.
(4) Where the overdraft facility is reduced or cancelled, the
creditor shall offer the consumer before the enforcement proceedings
have been initiated and at no additional cost, the possibility to repay
the amount actually drawn down to the extent of such reduction or
cancellation which repayment shall be made in twelve (12) equal
monthly instalments unless the consumer chooses to repay earlier, at
the borrowing rate applicable to the overdraft facility.
(1) Where the consumer enters into an agreement to open Overrunning.
a current account, and there is a possibility that the consumer is
allowed an overrun, the creditor shall include information on that
possibility in such agreement, as well as information on the borrowing
rate, the conditions governing the application of such rate, 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.
The creditor shall in any case provide the consumer with such
information on paper or another durable medium chosen by the
consumer and specified in the agreement to open a current account, 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,
on paper or another durable medium chosen by the consumer and
specified in the agreement to open a current account, of all of the
following
(a)
the overrunning;
(b)
the amount involved;
(c)
the borrowing rate;
(d) any penalties, charges or interest on arrears
applicable; and
(e)
the repayment date
Provided that in the case of regular overrunning, the
creditor shall offer the consumer advisory services, where
available, and redirect the consumer at no cost towards the
provision of debt advisory services.
(3) This regulation shall be without prejudice to any rule of
national law requiring the creditor to offer another kind of credit
product when the duration of the overrunning is significant.
(4) The creditor shall notify the consumer in an agreed manner
when the overrunning is no longer allowed or that the limit of the
overrunning is reduced, at least thirty (30) days prior to the day when
the actual cancellation or reduction of the overrunning takes effect.
(5) Where the overrunning is reduced or cancelled, the creditor
shall offer the consumer, before the enforcement proceedings have
been initiated, at no additional cost, of the possibility to repay the
amount actually drawn down to the extent of such reduction or
cancellation and, such a repayment shall be made in twelve (12) equal
monthly instalments unless the consumer chooses to repay earlier, at
the borrowing rate applicable to the overrunning.
(1) Consumers may withdraw from the credit agreement
without giving any reason within a period of fourteen (14) days, and
such withdrawal period shall begin either
(a) from the day of the conclusion of the credit
agreement; or
(b) from the day on which the consumer receives the
contractual terms and conditions and the information in
accordance with regulations 20 and 21, if such day is later than
the date referred to in sub-regulation (a)
Provided that the deadline referred to in sub-
regulation (1) shall be deemed to have been met if the
notification referred to in sub-regulation (4)(a), is dispatched by
the consumer to the creditor before such deadline expires.
(2) If the consumer has not received the contractual terms and
conditions and the information in accordance with regulation 20 and
21, the withdrawal period shall in any event, expire twelve (12)
months and fourteen (14) days after the conclusion of the credit
agreement
Provided that this shall not apply if the consumer has not
been informed about his right of withdrawal in accordance with
regulation 21(1)(p).
(3) Where a linked credit agreement for the purchase of a good
with a return policy ensures a full refund for a certain period of time
exceeding fourteen (14) days, the right to withdrawal shall be extended
to match the duration of such return policy.
(4)
Where the consumer exercises the right of withdrawal, he
shall
(a) notify the creditor in accordance with the information
given by the creditor pursuant to regulation 21(1)(p) on paper or
another durable medium chosen by the consumer and specified
in the credit agreement within the deadline established in sub-
regulation (1); and
(b) pay to the creditor the capital and the interest accrued
thereon from the date on which the credit was drawn-down until
the date on which the capital is repaid, without any undue delay
and in any event not later than thirty (30) days after the dispatch
of the notification referred to in paragraph (a)
Provided that the interest referred to in sub-regulation
(1)(b), shall be calculated on the basis of the agreed borrowing
rate and 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.
(5) Where an ancillary service relating to the credit agreement
is provided by the creditor, or by a third party on the basis of an
agreement between that third party and the creditor, the consumer shall
no longer be bound by the ancillary service contract if the consumer
exercises the right of withdrawal from the credit agreement in
accordance with this regulation.
(6) Regulations 7 and 8 of the Distance Selling (Retail
Financial Services) Regulations shall not apply where the consumer
has a right of withdrawal under sub-regulations (1), (4) and (5).
(7) This regulation shall be without prejudice to any national
law establishing a period of time during which the performance of the
contract may not begin.
(1) Where a consumer has exercised the right of
withdrawal, concerning a contract for the supply of goods or the
provision of services, they shall no longer be bound by a linked credit
agreement.
(2) Where the goods or services covered by a linked credit
agreement are not supplied or provided, or are supplied or provided
only in part, or are not in conformity with the contract for the supply or
provision thereof, the consumer shall have the right to pursue remedies
against the creditor if the consumer has pursued remedies against the
supplier or provider but has failed to obtain the satisfaction to which
he is entitled according to the law or the contract for the supply of
those goods or the provision of those services.
(3) This regulation shall be without prejudice to national law
rendering the creditor jointly and severally liable in respect of any
claim which the consumer may have against the supplier or provider
where the purchase of goods or services from the supplier or provider
has been financed by a credit agreement.
(1) The consumer may affect standard termination of an
open-end credit agreement free of charge at any time, unless the
parties have agreed on a period of notice which period shall not exceed
one (1) month
Provided that the creditor may, where agreed in the credit
agreement, affect standard termination of an open-end credit
agreement by giving the consumer at least two (2) months notice on
paper or another durable medium specified in the credit agreement.
(2) The creditor may, where agreed in the credit agreement, for
objectively justified reasons, terminate the right of the consumer to
draw down on an open-end credit agreement, and the creditor shall
inform the consumer of the termination and the reasons for such
termination on paper or another durable medium specified in the credit
agreement, where possible before the termination and at the latest
immediately thereafter, unless the provision of such information is
prohibited by European Union or national law or is contrary to
objectives of public policy or public security.
(1) The consumer shall be at any time entitled to early Early
repayment, and in such cases, the consumer shall be entitled to a repayment.
reduction in the total cost of the credit to the consumer for the
remaining duration of the contract
Provided that when calculating such reduction, all the costs
imposed on the consumer by the creditor shall be taken into
consideration.
(2) In the event of early repayment, the creditor shall be
entitled to fair and objectively justified compensation for possible
costs directly linked to such early repayment, provided that the early
repayment falls within a period of time for which the borrowing rate is
fixed
Provided that the compensation referred to in sub-
regulation (1) shall not exceed one percent (1%) of the amount of
credit subject to early repayment where the period of time between the
early repayment and the agreed date of termination of the credit
agreement exceeds one (1) year. Where that period does not exceed
one (1) year, the compensation shall not exceed zero point five percent
(0.5%) of the amount of credit subject to early repayment.
(3)
Notwithstanding sub-regulation (2), the creditor
(a) shall only be entitled to the compensation referred to
in sub-regulation (2) on the condition that the amount of the
early repayment exceeds ten thousand euro (€10,000) within any
period of twelve (12) months; and
(b) may exceptionally claim higher compensation if the
creditor can prove that the loss suffered due to early repayment
exceeds the amount determined in accordance with sub-
regulation (2)
Provided that where the compensation claimed by the
creditor exceeds the loss actually suffered due to the early
repayment, the consumer shall be entitled to a corresponding
action and in such case, the loss shall consist of the difference
between the initially agreed borrowing rate and the interest rate
at which the creditor may lend out the amount subject to early
repayment on the market at the time of such repayment and shall
take into account the impact of the early repayment on the
administrative costs.
(4) The compensation amounts referred to in sub-regulations
(2) and (3)(b) shall not in any case exceed the amount of interest that
the consumer would have paid during the period of time between the
early repayment and the agreed date of termination of the credit
agreement.
(5) The creditor shall not be entitled to the compensation
referred to in sub-regulation (2) where one of the following conditions
is fulfilled
(a) the repayment has been made under an insurance
contract intended to provide a credit repayment guarantee;
(b) the credit is granted in the form of an overdraft
facility; or
(c) the repayment falls within a period for which the
borrowing rate is not fixed.
(1) The annual percentage rate of charge shall be
calculated in accordance with the mathematical formula provided in
Part I of the Third Schedule and it shall equate, on an annual basis, to
the present value of all commitments (drawdowns, repayments and
charges), future or existing, agreed by the creditor and the consumer.
(2) 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 stipulated in the credit
agreement and charges other than the purchase price which, for
purchases of goods or services, he shall be obliged to pay whether the
transaction is effected in cash or on credit
Provided that the costs of maintaining an account recording
both payment transactions and drawdowns, the costs of using a means
of payment for both payment transactions and drawdowns, and other
costs relating to payment transactions shall be included in the total cost
of the credit to the consumer unless the opening of the account is
optional and the costs of the account have been clearly and separately
identified in the 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 the credit agreement shall 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.
(4) Where credit agreements contain clauses that allow
variations in the borrowing rate or variations in certain charges
contained in the annual percentage rate of charge which make them
unquantifiable at the time of calculation, the annual percentage rate of
charge shall be calculated on the assumption that 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.
(5) Where necessary, the additional assumption provided in
Part II of the Third Schedule shall be used in calculating the annual
percentage rate of charge.
(1) A creditor or a European creditor, offering credit Measures to
agreements to consumers within Malta shall ensure that the annual limit
rates, annual
percentage rate of charge does not exceed sixteen percent (16%)
percentage rates
of charge or
total costs of
Provided that the maximum annual percentage rate of credit
consumer.
charge may be revised at the discretion of the competent authority.
(2) When an interval between dates used in the calculation
cannot be expressed as a whole number of years, months or weeks, the
interval shall be expressed as a whole number of one (1) of these
periods in combination with a number of days. For the choice among
years, months or weeks, consideration shall be given to the frequency
of drawdowns and payments. When using days for the purposes of
calculating the annual percentage rate of charge
(a) every day shall be counted, including weekends and
holidays;
(b) equal periods and then days shall be counted
backwards to the date of the initial drawdown; and
(c) the length of a period of days shall be obtained
excluding the first day and including the last day (simple
subtraction of dates), and shall be expressed in years by dividing
this period by the number of days (365 days or 366 days for leap
years), of the complete year counted backwards from the last day
to the same day of the previous year.
(d)
one (1) month is presumed to have 30.41666 days
Provided that the applicable national provisions on the
annual percentage rate of charge, if any, set by the respective
Member State in accordance with the Consumer Credit Directive
shall apply where the creditor provides credit agreements to
consumers outside Malta in the exercise of a European right in
accordance with the European Passport Rights for Financial
Institutions Regulations.
(1) The creditor and the credit intermediary shall act
honestly, fairly, transparently and professionally and shall take into
account the rights and interests of the consumers when carrying out
any of the following activities
(a)
manufacturing credit products;
(b) advertising credit products in accordance with
regulation 7;
(c)
granting, intermediating or facilitating the granting of
credit;
(d)
providing advisory services;
(e)
providing ancillary services to consumers; and
(f)
executing a credit agreement
Provided that the activities referred to in paragraphs
(c) and (d), shall be based on information about the
circumstances of the consumer and any specific requirement
communicated by a consumer and on reasonable assumptions
about risks to the consumer’s situation throughout the duration
of the credit agreement
Provided further that the activities referred to in
paragraph (d), shall also be based on the information required
under regulation 16(3)(a).
(2) The manner in which creditors remunerate their staff and
credit intermediaries and the manner in which credit intermediaries
remunerate their staff shall not impede their compliance with the
obligation provided in sub-regulation (1).
(3) When establishing and applying remuneration policies for
staff responsible for the assessment of creditworthiness, creditors shall
comply with the following principles in a way and to the extent that is
appropriate to their size, internal organisation and the nature, scope
and complexity of their activities
(a) the remuneration policy is consistent with and
promotes sound and effective risk management and does not
encourage risk-taking that exceeds the level of tolerated risk of
the creditor; and
(b) the remuneration policy is in line with the business
strategy, objectives, values and long-term interests of the
creditor, and incorporates measures to avoid conflicts of interest,
in particular by providing that remuneration is not contingent on
the number or proportion of accepted applications for credit.
(4) Where creditors or credit intermediaries provide advisory
services, the remuneration structure of the staff involved shall not
prejudice their ability to act in the best interest of the consumer and is
not contingent on sales targets.
Creditors and credit intermediaries shall ensure that their Knowledge and
staff possess and keep an updated and appropriate level of knowledge competence
requirements for
and competence in relation to the manufacturing, the offering and the staff.
granting of credit agreements, the carrying out of credit intermediation
activities and the provision of advisory services, as well as in relation
to consumer rights in the area of their trade. Where the conclusion of a
credit agreement includes ancillary services, creditors and credit
intermediaries shall also ensure that their staff possess the appropriate
knowledge and competence in relation to such ancillary services
Provided that the minimum knowledge and competence
requirements that shall apply in this regard are established in the
Fourth Schedule.
(1) Creditors shall exercise, where appropriate, Arrears and
reasonable forbearance before enforcement proceedings are initiated forbearance
measures.
and such forbearance measures shall take into account, among other
elements, the individual circumstances of the consumer
Provided that in justified cases, creditors shall not be
required to offer forbearance measures reiteratively to consumers.
(2) The forbearance measures referred to in sub-regulation (1)
may include, among other possibilities, a total or partial refinancing of
a credit agreement and shall include modification of the existing terms
and conditions of a credit agreement, which may, among other
possibilities include
(a)
extending the term of the credit agreement;
(b)
changing the type of the credit agreement;
(c) deferring payment of all or part of the repayment of
instalments for a period;
(d)
reducing the borrowing rate;
(e)
offering a payment holiday;
(f)
partial repayments;
(g)
currency conversions; or
(h)
partial forgiveness and debt consolidation
Provided that the aforementioned list is without
prejudice to any other rules provided in national law including in
particular the national provisions implementing the European
Banking Authority Guidelines on management of non-
performing and forborne exposures and the European Central
Bank Guidance to banks on non-performing loans.
(3) Creditors shall not be required to perform a
creditworthiness assessment in accordance with regulation 18 when
modifying the existing terms and conditions of a credit agreement in
accordance with sub-regulation (2)(b), provided that the total amount
payable by the consumer is not significantly increased when
modifying the credit agreement.
(4) Where the creditor defines and imposes charges on the
consumer arising from the default, such charges shall not be greater
than is necessary to compensate the creditor for costs it has incurred as
a result of the default.
(1) Independent debt advisory services shall be referred
by creditors to consumers experiencing difficulties in meeting their
financial commitments.
(2) For the purposes of fulfilling the obligation established in
sub-regulation (1), creditors shall have processes and policies in place
for the early detection of consumers experiencing financial difficulties.
(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) Without prejudice to any other power assigned to the Administrative
competent authority in accordance with the Act, these regulations or penalties,
administrative
any other law, where a person falling within the scope of these measures
appeals.
regulations fails to comply with any of the provisions of these
regulations or any Credit Intermediaries Rules and Financial
Institutions Rules issued thereunder which further implement these
regulations, the competent 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 competent 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 Regulations
apply notwithstanding anything to the contrary contained in any credit shall prevail.
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.
The Financial Institutions Act (Consumer Credit) Repeal and
Regulations are hereby repealed without prejudice to anything done or savings.
omitted to be done thereunder
Provided that the aforementioned regulations shall continue
to apply to credit agreements entered into prior to 20th November
2026 until such termination thereof.