CONSUMER CREDIT REGULATIONS

SUBSIDIARY LEGISLATION 378.12

CONSUMER CREDIT REGULATIONS

1st October, 2010 *

LEGAL NOTICE 330 of 2010, as amended by Legal Notices 28 of 2013

87 of 2018 and XVI of 2019 and Legal Notice 17 of 2024.

PART 1

PRELIMINARY

The title of these regulations is the Consumer Credit

Regulations.

[Regulation 7]

STANDARD EUROPEAN CONSUMER CREDIT INFORMATION

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

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

[Identity]

Address

Geographical address to be used by the

Telephone Number (*)

consumer]

E-mail address (*)

Fax Number (*)

Web address (*)

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

Credit Intermediary

[Identity]

Address

[Geographical address to be used by the

Telephone Number (*)

consumer]

E-mail address (*)

Fax Number (*)

Web address (*)

(*) This information is optional for the creditor.

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

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

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

Indications between square brackets provide explanations for the creditor and

must be replaced with the corresponding information.

2. Description of the main features of the credit product

The type of credit

The total amount of credit

This means the ceiling or the total sums made

available under the credit agreement

The conditions governing the drawdown

This means how and when you will obtain the

money

The duration of the credit agreement

Instalments and, where appropriate, the order You will have to pay the following

in in which the instalments will be allocated [ T h e a m o u n t , n u m b e r a n d f r e q u e n c y o f

payments to be made by the consumer]

Interest and/or charges will be payable in the

following manner

The total amount you will have to pay

[Sum of total amount of credit and total cost

This means the amount of borrowed capital of credit]

plus interest and possible costs related to your

credit.

If applicable

The credit is granted in the form of a deferred

payment for a good or service or is linked to

the supply of specific goods or the provision of

a service

Name of good/service

Cash price

If applicable

Sureties required

[Kind of Sureties]

This is a description of the security to be

p ro v i d e d b y y o u i n re l a t i o n t o t h e c re d i t

agreement.

CONSUMER CREDIT

If applicable

Repayments do not give rise to immediate

amortisation of the capital.

3. Costs of the credit

The borrowing rate or, if applicable, different [ %

borrowing rates which apply to the credit - fixed or,

agreement

- variable (with the index or reference rate

applicable to the initial borrowing rate),

- periods],

Annual Percentage Rate of Charge (APR)

[ % A representative example mentioning all

This is the total cost expressed as an annual the assumptions used for calculating the rate

percentage of the total amount of credit.

to be set out here]

The APR is there to help you compare different

offers.

Is it compulsory, in order to obtain the credit or

to obtain it on the terms and conditions

marketed, to take out

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

- an insurance policy securing the credit, or

Yes/No [if yes specify the kind of ancillary

- another ancillary service contract

service]

If the costs of these services are not known by

the creditor they are not included in the APR.

Related Costs

If applicable

Maintaining one or more accounts is required

for recording both payments transactions and

drawdowns

If applicable

Amount of costs for using a specific means of

payment (e.g. credit card)

If applicable

Any other costs deriving from the credit

agreement

If applicable

Conditions under which the above mentioned

costs related to the credit agreement can be

changed

If applicable

Obligation to pay notarial fees

Costs in the case of late payments

M i s s i n g p a y m e n t s c o u l d h a v e s e v e r e You will be charged [...... (applicable interest

consequences for you (e.g. forced sale) and rate and arrangements for its adjustment and,

where applicable, default charges)] for missing

make obtaining credit more difficult.

payments.

4. Other important legal aspects

Right of Withdrawal

Yes/No

You have the right to withdraw from the credit

agreement within a period of 14 running days.

Early Repayment

You have the right to repay the credit early at

any time in full or partially.

If applicable

The creditor is entitled to compensation in the [ D e t e r m i n a t i o n o f t h e c o m p e n s a t i o n

case of early repayment.

(calculation method) in accordance with the

provisions implementing regulation 16 of the

Consumer Credit Regulations, 2010.

CONSUMER CREDIT

Consultation of a database

The creditor must inform you immediately and

without charge of the result of a consultation of

a database, if a credit application is rejected

on the basis of such a consultation. This does

not apply if the provision of such information is

prohibited by European Community law or is

contrary to objectives of public policy or

public security.

Right to a draft agreement

You have the right, upon request, to obtain a

copy of the draft credit agreement free of

charge. This provision does not apply if the

creditor is at the time of the request unwilling

to proceed to the conclusion of the credit

agreement with you.

If applicable

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

bound by the pre-contractual information

If applicable

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

services

(a) concerning the creditor

If applicable

Representative of the creditor in your Member [Identity]

State of residence

[Geographical address to be used by the

Address

consumer]

Telephone Number (*)

E-mail address (*)

Fax Number (*)

Web address (*)

If applicable

Registration

[The trade register in which the creditor is

entered and his registration number or an

equivalent means of identification in that

register]

If applicable

The supervisory authority

(b) concerning the credit agreement

If applicable

Exercise of the right of withdrawal

[Practical instructions for exercising the right

of withdrawal indicationg, inter alia, the

period for exercising the right, the address to

which notification of exercise of the right of

withdrawal should be sent and the

consequences of non-exercise of that right]

The law taken by the creditor as a basis for the

establishment of relations with you before the

conclusion of the credit contract

If applicable

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

to the credit agreement and/or the competent

court

If applicable

Language regime

Information and contractual terms will be

supplied in [specific language]. With your

consent, we intend to communicate in

[specific language/languages] during the

duration of the credit agreement.

(c) concerning redress

CONSUMER CREDIT

E x i s t e n c e o f a n d a c c e s s t o o u t - o f - c o u r t [Whether or not there is an out-of-court

complaint and redress mechanism

complaint and redress mechanism for the

consumer who is party to the distance

contract and, if so, the methods of access to

it]

(*) This information is optional for the creditor.

The scope of these regulations is to

(a) transpose the provisions of Directive 2008/48/EC of

the European Parliament and of the Council of 23

April 2008 on credit agreements for consumers and

repealing Council Directive 87/102/EC;

(b) transpose the provisions of Commission Directive

2011/90/EU of 14 November 2011 amending Part II of

Annex I to Directive 2008/48/EC of the European

Parliament and of the Council providing additional

assumptions for the calculation of the annual

percentage rate of charge; and

(c) transpose article 27 of Directive (EU) 2021/2167 of

the European Parliament and of the Council of 24

November 2021 on credit servicers and credit

purchasers and amending Directives 2008/48/EC and

2014/17/EU.

PART 2

DEFINITIONS

[Regulation 8]

EUROPEAN CONSUMER CREDIT INFORMATION FOR

(1) overdrafts

(2) debt conversion

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

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

[Identity]

Address

[Geographical address to be used by the

Telephone Number (*)

consumer]

E-mail address (*)

Fax Number (*)

Web address (*)

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

Credit Intermediary

[Identity]

Address

[Geographical address to be used by the

Telephone Number (*)

consumer]

E-mail address (*)

Fax Number (*)

Web address (*)

(*) This information is optional for the creditor.

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

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

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

Indications between square brackets provide explanations for the creditor and

must be replaced with the corresponding information.

2. Description of the main features of the credit product

The type of credit

The total amount of credit

This means the ceiling or the total sums

made available under the credit agreement

The duration of the credit agreement

If applicable

You may be requested to repay the amount of

credit in full on demand at any time.

3. Costs of the credit

The borrowing rate or, if applicable, different [ %

borrowing rates which apply to the credit - fixed or,

agreement

- variable (with the index or reference rate

applicable to the initial borrowing rate)]

CONSUMER CREDIT

If applicable

Annual Percentage Rate of Charge (APR)

[ % A representative example mentioning all

This is the total cost expressed as an annual the assumptions used for calculating the rate

percentage of the total amount of credit.

to be set out here]

The APR is there to help you compare

different offers.

If applicable

Costs

[The costs applicable from the time the credit

If applicable

agreement is concluded]

The conditions under which those costs may be

changed

Costs in the case of late payments

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

rate and arrangements for its adjustment and,

w h e r e a p p l i c a b l e , d e f a u l t c h a rg e s ) ] f o r

missing payments.

4. Other important legal aspects

Termination of the credit agreement

[The conditions and procedure for terminating

the credit agreement]

Consultation of a database

The creditor must inform you immediately and

without charge of the result of a consultation

o f a d a t a b a s e , i f a c re d i t a p p l i c a t i o n i s

rejected on the basis of such a consultation.

This does not apply if the provision of such

i n f o r m a t i o n i s p ro h i b i t e d b y E u ro p e a n

Community law or is contrary to objectives of

public policy or public security.

If applicable

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

bound by the pre-contractual information

If applicable

5. Additional information to be given where the precontractual information

relates to a consumer credit for debt conversion.

Instalments and, where appropriate, the order You will have to pay the following

in which the instalments will be allocated

[Representative example of an instalment

table including the amount, number and

frequency of payments to be made by the

consumer]

The total amount you will have to pay

Early Repayment

You have the right to repay the credit early at

any time in full or partially.

If applicable

The creditor is entitled to compensation in the [ D e t e r m i n a t i o n o f t h e c o m p e n s a t i o n

case of early repayment.

(calculation method) in accordance with the

provisions implementing Regulation 16 of the

Consumer Credit Regulations, 2010]

If applicable

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

services

(a) concerning the creditor

CONSUMER CREDIT

If applicable

Representative of the creditor in your Member [Identity]

State of residence

[Geographical address to be used by the

Address

consumer]

Telephone Number (*)

E-mail address (*)

Fax Number (*)

Web address (*)

If applicable

Registration

[The trade register in which the creditor is

entered and his registration number or an

equivalent means of identification in that

register]

If applicable

The supervisory authority

(b) concerning the credit agreement

Right of withdrawal

Yes/No

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

agreement within a period of 14 running days of wit hdr aw a l in d ica ti n g, i nt er ali a, t he

If applicable

address to which notification of the exercise

Exercise of the right of withdrawal

of withdrawal should be sent and the

consequences of non-exercise of that right]

If applicable

The law taken by the creditor as a basis for the

establishment of relations with you before the

conclusion of the credit contract

If applicable

C l a u s e s t i p u l a t i n g t h e g o v e r n i n g l a w [Relevant Clause to be set out here]

applicable to the credit agreement and/or the

competent court

If applicable

Language regime

Information and contractual terms will be

supplied in [specific language]. With your

consent, we intend to communicate in

[specific language/languages] during the

duration of the credit agreement.

(c) concerning redress

E x i s t e n c e o f a n d a c c e s s t o o u t - o f - c o u r t [Whether or not there is an out-of-court

complaint and redress mechanism

complaint and redress mechanism for the

consumer who is party to the distance

contract and, if so, the methods of access to

it]

(*) This information is optional for the creditor.

For the purpose of these regulations

"Act" means the Consumer Affairs Act;

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

assigned to it under regulation 21;

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

variable percentage applied on an annual basis to the amount of

credit drawn down;

"Civil Court" means the Civil Court (Commercial Section)

established by article 3 of the Civil Court (Establishment of Sections)

Order;

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

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

trade, business or profession;

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

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

*See regulation 1(2) as originally promulgated.

profession;

"credit agreement " means an agreement whereby a creditor

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

deferred payment, loan or other similar financial accommodation,

except for agreements for the provision on a continuing basis of

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

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

provision by means of instalments;

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

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

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

agreed form of financial consideration

(i)

presents or offers credit agreements to consumers;

(ii)

assists consumers by undertaking preparatory work in

respect of credit agreements other than as referred to

in paragraph (i); or

(iii)

concludes credit agreements with consumers on behalf

of the creditor;

"the Director General" means the Director General (Consumer

Affairs) as defined in the Act;

"durable medium " means any instrument which enables the

consumer to store information addressed personally to him in a way

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

purposes of the information and which allows the unchanged

reproduction of the information stored;

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

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

duration of the credit agreement or on several borrowing rates for

partial periods using exclusively a fixed specific percentage. If not

all borrowing rates are determined in the credit agreement, the

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

periods for which the borrowing rates are determined exclusively

by a fixed specific percentage agreed on the conclusion of the

credit agreement;

"linked credit agreement" means a credit agreement where

(i)

the credit in question serves exclusively to finance an

agreement for the supply of specific goods or the

provision of a specific service; and

(ii)

those two agreements form, from an objective point of

view, a commercial unit.

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

deemed to exist where the supplier or service provider himself

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

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

provider in connection with the conclusion or preparation of the

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

specific service are explicitly specified in the credit agreement;

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

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

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

"overdraft facility" means an explicit credit agreement whereby

a creditor makes available to a consumer funds which exceed the

current balance in the consumer’s current account;

"overrunning" means a tacitly accepted overdraft whereby a

creditor makes available to a consumer funds which exceed the

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

overdraft facility;

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

available under a credit agreement;

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

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

consumer; and

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

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

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

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

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

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

addition, the conclusion of a service contract is compulsory in

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

marketed.

PART 3

SCOPE AND APPLICATION

Amended by

L.N. 28 of 2013.

[Regulation 21]

The basic equation expressing the equivalence of drawdowns on the one

hand and repayments and charges on the other.

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

equates, on an annual basis, the total present value of drawdowns on the one hand

and the total present value of repayments and payments of charges on the other hand,

is the APR,

is the number of the last drawdown,

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

is the amount of drawdown k,

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 t 1 = 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. An equal month

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

or not it is a leap year.

(d) The result of the calculation shall be expressed with an accuracy of at

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

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

shall be increased by one.

(e) The equation can be rewritten using a single sum and the concept of

flows (Ak), which will be positive or negative, in other words either

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

CONSUMER CREDIT

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

flows, the value will be zero.

The additional assumptions for the calculation of the annual percentage rate

of charge shall be as follows

(a) If a credit agreement gives the consumer freedom of drawdown, the

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

and in full.

(b) If a credit agreement gives the consumer freedom of drawdown in

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

limitation with regard to the amount of credit and period of time, the

amount of credit shall be deemed to be drawn down on the earliest date

provided for in the credit agreement and in accordance with those

drawdown limits.

(c) If a credit agreement provides different ways of drawdown with

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

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

applied to the most common drawdown mechanism for this type of

credit agreement.

(d) In the case of an overdraft facility, the total amount of credit shall be

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

credit agreement. If the duration of the overdraft facility is not known,

the annual percentage rate of charge shall be calculated on the

assumption that the duration of the credit is three months.

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

facility, it shall be assumed that

(i)

the credit is provided for a period of one year starting from the

date of the initial drawdown, and that the final payment made by

the consumer clears the balance of capital, interest and other

charges, if any;

(ii) the capital is repaid by the consumer in equal monthly payments,

commencing one 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 year. Interest and

other charges shall be applied in accordance with those

drawdowns and repayments of capital and as provided for in the

credit agreement.

For the purposes of this paragraph, an open-end credit agreement is a

credit agreement without fixed duration and includes credits which must

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

available to be drawn down again.

(f)

In the case of credit agreements other than overdrafts and open-end

credits as referred to in the assumptions set out in paragraphs (d) and

(e)

(i)

if the date or amount of a repayment of capital to be made by the

consumer cannot be ascertained, it shall be assumed that the

repayment is made at the earliest date provided for in the credit

agreement and is for the lowest amount for which the credit

agreement provides;

(ii) if the date of conclusion of the credit agreement is not known, the

date of the initial drawdown shall be assumed to be the date which

results in the shortest interval between that date and the date of

the first payment to be made by the consumer.

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

cannot be ascertained on the basis of the credit agreement or the

assumptions set out in paragraphs (d), (e) or (f), it shall be assumed that

the payment is made in accordance with the dates and conditions

required by the creditor and, when these are unknown

(i) interest charges are paid together with the repayments of capital;

(ii) a non-interest charge expressed as a single sum is paid at the date

of the conclusion of the credit agreement;

(iii) non-interest charges expressed as several payments are paid at

regular intervals, commencing with the date of the first repayment

of capital, and if the amount of such payments is not known they

shall be assumed to be equal amounts;

(iv) the final payment clears the balance of capital, interest and other

charges, if any.

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

ceiling is assumed to be EUR 1500.

(i)

If different borrowing rates and charges are offered for a limited period

or amount, the borrowing rate and the charges shall be deemed to be the

highest rate for the whole duration of the credit agreeement.

(j)

For consumer credit agreements for which a fixed borrowing rate is

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

borrowing rate is determined and subsequently periodically adjusted

according to an agreed indicator, the calculation of the annual

percentage rate shall be based on the assumption that, at the end of the

fixed borrowing rate period, the borrowing rate is the same as at the

time of calculating the annual percentage rate, based on the value of the

agreed indicator at that time.

(1) These regulations shall apply to consumer credit

agreements.

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

shall not apply to credit agreements

(a) entered into before the date on which these regulations

shall come into force

Provided that open-end credit agreements which were

entered into before 1st October, 2010 shall be

regulated by regulations 12(4)(a), 12(4)(b), 12(5), 13,

17, 18(2) and 18(3);

(b) which are secured by a hypothec, privilege, or land

registry charge, or by a right related to immovable

property;

(c) the purpose of which is to acquire or retain property

rights over land and or over an existing or projected

building;

(d) involving a total amount of credit less than two

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

thousand euro (€75,000)

Provided that notwithstanding this provision, these

regulations shall apply to unsecured credit agreements

the purpose of which is the renovation of a residential

immovable property involving a total amount of credit

CONSUMER CREDIT

above seventy-five thousand euro (€75,000);

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

purchase the object of the agreement is not laid down

either by the agreement itself or by a separate

agreement. Such an obligation shall be deemed to exist

if it is so decided unilaterally by the creditor;

(f)

in the form of an overdraft facility and where the

credit has to be repaid within one month, without

prejudice to regulation 9;

(g) where the credit is granted free of interest and without

any other charges;

(h) under the terms of which the credit has to be repaid

within three months and only insignificant charges are

payable;

(i)

where the credit is granted by an employer to his

employees as a secondary activity free of interest or at

annual percentage rates of charge which are lower than

those prevailing on the market and which are not

offered to the public;

(j)

which are concluded with European investment firms

as defined in article 2 of the Investment Services Act

or 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;

(k) which are the outcome of a settlement reached in court

or before another statutory authority;

(l)

which relate to the deferred payment, free of charge, of

an existing debt;

(m) upon the conclusion of which the consumer is

requested to deposit an item as security in the

creditor’s safe-keeping and where the liability of the

consumer is strictly limited to that pledged item; and

(n) which relate to loans granted to a restricted public

under a statutory provision with a general interest

purpose and at lower interest rates than those

prevailing on the market or free of interest or on other

terms which are more favourable to the consumer than

those prevailing on the market and at interest rates not

higher than those prevailing on the market.

(3)

Credit agreements in the form of

(a) an overdraft facility and where the credit has to be

repaid on demand or within three months, shall be

subject only to regulations 1, 2, 3, for proviso 4(2)(a),

5(3), 5(4), 8 to 10, 11(3), 12(1), 12(2), 12(3), 12(5),

15, 17, 19(1), 19(2)(a) to (d), 20 to 24; and

(b) an overrunning, shall be subject only to regulations 1

to 4, 18, 22 to 25.

(4) Credit agreements which provide for arrangements to be

agreed by the creditor and the consumer in respect of deferred

payments or repayment methods, where the consumer is already in

default on the initial credit agreement and where -

(a) such arrangements would be likely to avert the

possibility of legal proceedings concerning such

default; and

(b) the consumer would not thereby be subject to terms

less favourable than those laid down in the initial

credit agreement,

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

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

far as the information to be included in credit agreements, 8, 9,

11(3), 12(1) limitedly to the first sentence thereof regarding the

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

in writing or on a durable medium, 12(1)(b), 12(2), 12(4), 13, 16,

18, 20 to 25.

Provided that credit agreements in the form of an overdraft

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

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

PART 4

OBLIGATIONS OF THE CREDITOR AND

CREDIT INTERMEDIARY

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

compliance with these regulations.

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

obligations of the creditor shall equally apply to a credit

intermediary where a credit intermediary presents or offers credit

agreements to consumers, assists consumers by undertaking

preparatory work in respect of credit agreements, or concludes

credit agreements with consumers on behalf of the creditor.

(3) Where a credit intermediary participates or intends to

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

shall

(a) indicate in advertising and documentation intended for

consumers, the extent of his powers, in particular

whether he works exclusively with one or more

creditors or as an independent broker;

(b) disclose the fee, if any, payable by the consumer for

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

a durable medium between the consumer and the credit

intermediary before the conclusion of the credit

agreement; and

(c) disclose the fee, if any, payable by the consumer to the

credit intermediary for his services to the creditor for

the purpose of calculating the annual percentage rate

of charge.

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

services acting as credit intermediaries in an ancillary capacity.

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

the consumer receives the pre-contractual information referred to

under regulations 7 and 8.

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

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

the credit terms and conditions offered by the creditor, and taking

into account the preferences expressed and information supplied by

the consumer, shall provide to the consumer the information

identified under regulation 7, in order to assist the consumer in

comparing different offers and reaching an informed decision on

whether to conclude a credit agreement with the creditor.

(2) With respect to credit agreements falling under regulation

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

provide adequate explanations to the consumer in order to place the

consumer in a position enabling him to assess whether the proposed

credit agreement is adapted to his needs and financial situation,

where appropriate by explaining the pre-contractual information

provided under regulation 7, the essential characteristics of the

products proposed and specific effects they may have on the

consumer, including the consequences of default in payment by the

consumer.

(1) The information to be disclosed by a creditor or credit

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

consumers whose credit agreement is regulated by regulations 8

and 9, shall specify

(a) the type of credit to be provided under the agreement;

(b) the identity and geographical address of the creditor

and, where applicable, of the credit intermediary;

(c) the total amount of credit to be provided under the

agreement and the conditions governing the drawdown

of credit;

(d) the duration of the credit agreement;

(e) in the case of credit in the form of deferred payment

for specific goods or services or linked-credit

agreements, the goods, services and the cash price

thereof;

(f)

the borrowing rate, the conditions governing the

application of that rate and, where available, any index

or reference rate applicable to the initial borrowing

rate, as well as the periods, conditions, and procedures

for changing the borrowing rate; and if different rates

apply in different circumstances, the above

information shall be supplied in respect of all the

applicable rates;

(g) the annual percentage rate of charge and the total

amount payable by the consumer illustrated by means

of a representative example mentioning all the

assumptions used in order to calculate that rate. Where

the consumer has informed the creditor of one or more

components of his preferred credit, such as the

duration of the credit agreement and the total amount

of credit, the creditor shall take those components into

account; if a credit agreement provides different ways

of drawdown with different charges or borrowing rates

and the creditor uses the assumptions set out in point

(b) of Part II of the Third Schedule, he shall indicate

that other drawdown mechanisms for this type of

credit agreement may result in higher annual

percentage rates of charge;

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

made by the consumer and where appropriate, the

order in which payments will be allocated to different

outstanding balances charged at different borrowing

rates for the purpose of reimbursement;

(i)

where applicable, the charges for maintaining one or

several accounts recording both payment transactions

and drawdowns, unless the opening of an account is

optional, and the charges for using a means of payment

for both payment transactions and drawdowns;

(j)

where applicable, any other charges deriving from a

credit agreement and the conditions under which those

charges may be changed;

(k) where applicable, a statement that fees will be payable

by the consumer to a notary public on conclusion of

the credit agreement;

(l)

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

ancillary services relating to the consumer credit

agreement, in particular insurance services, where the

conclusion of such a contract is compulsory in order to

obtain the credit or to obtain it on the terms and

conditions marketed;

(m) the interest rate applicable in the case of late payments

and the arrangements for its adjustment, and where

applicable, any charges payable for default;

(n) a warning relating to the consequences of missing

payments;

(o) where applicable, the sureties which need to be

identified by the consumer;

(p) in the case of a credit agreement under which

payments made by a consumer do not give rise to an

immediate corresponding amortisation of the total

amount of credit, but are used to constitute capital

during periods and under conditions laid down in the

credit agreement or in an ancillary agreement, a clear

and concise statement that such credit agreements do

not provide for a guarantee of repayment of the total

amount of credit drawn down under the credit

agreement unless such a guarantee is given;

(q) the existence or absence of a right of withdrawal;

(r) the consumer’s right of early repayment, and where

applicable the creditor’s right to compensation and the

way in which compensation is to be determined in

accordance with regulation 16;

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

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

of a database consultation carried out for the purposes

of assessing credit worthiness;

(t)

if applicable, the period of time during which the

creditor is bound by the pre-contractual information;

and

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

free of charge from the creditor with a copy of the

draft credit agreement. This provision shall not apply

if the creditor is at the time of the request unwilling to

proceed to the conclusion of the credit agreement with

the consumer.

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

by means of the form contained in the First Schedule

Provided that the creditor shall be deemed to have

discharged the obligation of providing information under this

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

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

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

the First Schedule.

(3) Should the creditor provide to the consumer additional

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

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

to the one under sub-regulation (2).

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

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

Services) Regulations, the description of the main characteristics of

the financial services to be provided pursuant to the second indent

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

at least

(a) the total amount of credit and the conditions governing

the drawdown;

(b) the duration of the credit agreement;

(c) the goods, services and the cash price in the case of

credit in the form of deferred payment for specific

goods or services or linked credit agreements;

(d) the borrowing rate, the conditions governing the

application of that rate and, where available, any index

or reference rate applicable to the initial borrowing

rate, as well as the periods, conditions, and procedure

for changing the borrowing rate; and if different rates

apply in different circumstances, the above

information shall be supplied in respect of all the

applicable rates;

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

made by the consumer and where appropriate, the

order in which payments will be allocated to different

outstanding balances charged at different borrowing

rates for the purpose of reimbursement;

(f)

the annual percentage rate of charge illustrated by

means of a representative example; and

(g) the total amount payable by the consumer.

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

request using a means of distance communication which does not

enable the information to be provided in accordance with sub-

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

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

contractual information, using the form under the First Schedule,

immediately after the conclusion of the credit agreement.

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

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

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

the credit intermediary, shall in good time before the credit

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

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

applicable, the preferences expressed and information supplied by

the consumer, in order to enable him to compare different offers to

tak e an in f or m ed d ecis io n on whe ther to conclude a credit

agreement, with information which shall specify

(a) the type of credit to be provided under the agreement;

(b) the identity and geographical address of the creditor

and, where applicable, of the credit intermediary;

(c) the total amount of credit to be provided under the

agreement;

(d) the duration of the credit agreement;

(e) the borrowing rate, the conditions governing the

application of that rate and any index or reference rate

applicable to the initial borrowing rate, the charges

applicable from the time the credit agreement is

concluded, and where applicable, the conditions under

which those charges may be changed;

(f)

the conditions and procedure for terminating the credit

agreement;

(g) where applicable, an indication that the consumer may

be requested to repay the amount of credit in full at

any time;

(h) the interest rate applicable in the case of late payment

and the arrangements for its adjustment, and where

applicable, any charges payable for default;

(i)

the charges applicable from the time the agreement is

concluded and, where applicable, the conditions under

which those charges may be changed;

(j)

the consumer’s right to be informed immediately and

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

of a database consultation carried out for the purposes

of assessing creditworthiness; and

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

creditor is bound by the pre-contractual information.

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

paper or on another durable medium and all information shall be

equally prominent. It may be provided by means of the form contained

in the Second Schedule

Provided that the creditor shall be deemed to have

discharged the obligation of providing information under this

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

Distance Selling (Retail Financial Services) Regulations, if the

creditor has supplied the information contained in the Second

Schedule.

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

the consumer requests that the overdraft facility be made available

with immediate effect, the description of the main characteristics of

the financial service shall include at least the items identified under

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

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

main characteristics shall include a specification of the duration of

the credit agreement.

(4)

In the case of a credit agreement as referred to in

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

(a) the information provided for under sub-regulation

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

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

made by the consumer and, where appropriate, the

order in which payments will be allocated to different

outstanding balances charged at different borrowing

rates for the purposes of reimbursement;

(c) the right to early repayment, and where applicable,

information concerning the creditor’s right to

compensation and the way in which that compensation

will be determined; and

(d) the annual percentage of charge, illustrated by means

of representative examples, mentioning all the

assumptions used in order to calculate that rate

Provided that where the credit agreement is in the form of

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

demand or within three months, it shall be regulated by sub-

regulation (1).

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

request using a means of distance communication which does not

enable the information to be provided in accordance with sub-

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

sub-regulation (3), the creditor shall immediately, after the

conclusion of the credit agreement, fulfil his obligations under sub-

regulations (1), (2) and (4) by providing the contractual

information pursuant to regulation 12 in so far as that regulation is

applicable.

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

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

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

repaid within one month.

(1) Before the conclusion of a credit agreement, the

creditor shall assess the creditworthiness of the consumer on the

basis of sufficient information, where appropriate, obtained from

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

the relevant database.

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

the conclusion of the credit agreement, the creditor shall

(a) update the financial information at his disposal

concerning the consumer; and

(b) assess the consumer’s creditworthiness,

before the total amount of credit is significantly increased.

PART 5

RIGHTS OF THE CONSUMER

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

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

agreement.

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

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

conclusion of the credit agreement with the consumer.

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

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

agreement.

(1) The consumer credit agreement referred to in regulation

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

specify, in a clear and concise manner, the following

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

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

(b) the identities and geographical addresses of the

contracting parties as well as, if applicable, the

identity and geographical address of the credit

intermediary involved;

(c) the annual percentage rate of charge and the total

amount payable by the consumer calculated at the time

the credit agreement is concluded

CONSUMER CREDIT

Provided that all the assumptions used in calculating

that rate shall be mentioned;

(d) where capital amortisation of a credit agreement with a

fixed duration is involved, the right of the consumer to

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

throughout the duration of the credit agreement, a

statement of account in the form of an amortisation

table.

The amortisation table shall

(i)

indicate the payments owing and the periods and

conditions relating to the payment of such

amounts;

(ii) contain a breakdown of each repayment showing

capital amortisation, the interest calculated on

the basis of the borrowing rate and where

applicable any additional costs;

(iii) where the interest is not fixed or the additional

costs may be changed under the credit

agreement, it shall indicate clearly and concisely

that the data contained in the table will remain

valid only until such time as the borrowing rate

or the additional costs are changed in accordance

with the credit agreement;

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

at any time, upon demand be requested to repay the

amount of credit in full;

(f)

the interest rate applicable in the case of late payments

as applicable at the time of the conclusion of the credit

agreement and the arrangement for its adjustment and,

where applicable, any charges payable for default;

(g) the existence or absence of a right of withdrawal

together with conditions attached to such right, which

conditions shall include

(i)

the period during which the right may be

exercised;

(ii) the information concerning the obligation of the

consumer to pay the capital drawn down and the

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

and

(iii) the amount of interest payable per day;

(h) information concerning the rights resulting under

regulations 15 and 16 and the conditions attached to

those rights;

(i)

the procedure to be followed in exercising the right of

termination of the credit agreement;

(j)

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

the consumer to make a complaint, the redress

mechanism available and the methods for having

access to it;

(k) where applicable, the name and address of the

competent supervisory authority;

(l)

where applicable,

other

contractual

terms

and

conditions; and

(m) where applicable, a statement, that notarial fees will be

payable.

(2) In the case of a credit agreement under which payments

made by the consumer do not give rise to an immediate

corresponding amortisation of the total amount of credit, but are

used to constitute capital during periods and under the conditions

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

info rmat ion con tained i n sub-regulat ion (1) sh al l, unless a

guarantee is provided, include a clear and concise statement that

such credit agreements do not provide a guarantee of repayment of

the total amount of credit drawn down under the credit agreement.

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

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

following information

(a) the type of credit;

(b) the identities and geographical addresses of the

contracting parties, and where applicable, of the credit

intermediary involved;

(c) the total amount of the credit and the conditions

governing the drawdown;

(d) the borrowing rate, the conditions governing the

application of that rate, and, where available any index

or reference rate applicable to the initial borrowing

rate, as well as the periods, conditions and procedure

for changing the borrowing rate; if different borrowing

rates apply in different circumstances, the above

information should be made applicable to all the

respective rates;

(e) an indication that the consumer may, at any time, upon

demand be requested to repay the amount of credit in

full;

(f)

conditions relating to the exercise of the right of

withdrawal from the credit agreement;

(g) information concerning the charges applicable from

the time the agreement is concluded and, where

applicable, the conditions under which those charges

may be changed; and

(h) the duration of the credit agreement.

(4)

(a) Should there be a change in the borrowing rate, the

creditor shall

(i)

inform the consumer of such a change before the

change enters into force;

(ii) communicate the information in writing or on a

durable medium;

CONSUMER CREDIT

(iii) inform the consumer of the amount of payments

to be made after the entry into force of the new

borrowing rates; and

(iv) if the number or frequency of the payments

changes, provide the consumer with the

particulars of such payment changes.

(b) However, the parties may agree in the credit agreement

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

be given to the consumer periodically in cases where

the change in the borrowing rate is caused by a change

in a reference rate, the new reference rate is made

publicly available by appropriate means, which may

include a publication on the creditor’s website or a

public advert, and the information concerning the new

reference rate is also kept available in the premises of

the creditor.

(4A) Without prejudice to other obligations provided for in these

regulations, prior to modifying the terms and conditions of the

credit agreement, the creditor shall communicate the following

information to the consumer

(a)

a clear description of the proposed changes and,

where applicable, of the need for consumer consent or of the

changes introduced by operation of law;

(b)

the time period for the implementation of the

changes referred to in paragraph (a);

(c)

the means for complaint available to the consumer

regarding the changes referred to in paragraph (a);

(d)

the time period available for filing any such

complaint;

(e)

the name and address of the Arbiter for Financial

Services as established under the Arbiter for Financial Services

Act before whom the consumer may submit the said complaint.

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

overdraft facility

(a) the consumer is entitled to be kept regularly informed

in writing or on a durable medium by means of a

statement of account of

(i)

the precise period to which the statement of

account relates;

(ii) the amounts and dates of drawdowns;

(iii) the balance from the previous statement and the

date thereof;

(iv) the new balance;

(v) the dates and amounts of payments made by the

consumer;

(vi)

the borrowing rate applied;

(vii) any charges that have been applied; and

(viii) where applicable, the minimum amount to be

paid;

(b) should there be a change in the borrowing rate or in

any charges payable, the consumer is entitled to be

informed in writing or on a durable medium by the

creditor of the change involved and before the change

enters into force;

(c) however, the parties may agree in the credit agreement

that information concerning the changes in the

borrowing rate is to be given in the manner provided

for in paragraph (a) in cases where the change in the

borrowing rate is caused by a change in the reference

rate, the new reference rate is made publicly available

by appropriate means, which may include a

publication on the creditor’s website or a public

advert, and the information concerning the new

reference rate is also kept available in the premises of

the creditor.

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

a v a i l a b l e t o t h e c o n s u m e r, f r e e o f c h a rg e a n d a t a n y t i m e

throughout the duration of the credit agreement, a statement of

account in the form of an amortisation table.

(1) A consumer is entitled to terminate an open-end credit

agreement at any time and free of charge.

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

period of notice not exceeding one month before termination by the

consumer.

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

an open-end consumer credit agreement by giving the consumer not

less than two months notice in writing or on a durable medium.

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

drawdown credit under an open-end consumer credit agreement

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

an objectively justified reason.

For the purpose of this sub-regulation "objectively justified

reasons" include suspicion by the creditor that the consumer is

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

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

his obligation to pay the credit.

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

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

termination and reasons leading to such termination before the date

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

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

information would be contrary to public policy or public security or

is unlawful.

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

agreement without giving any reasons.

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

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

(a) from the day of the conclusion of the credit agreement;

or

(b) from the day when the consumer receives the

contractual terms and conditions and information in

accordance with regulations 12(1) to (3), if that day is

later than the date referred to in paragraph (a)

Provided that for the purpose of credit facilities granted by

banking institutions which necessitate the issue of a letter of

acceptance, the credit agreement shall be deemed to be concluded

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

the terms and conditions listed in the agreement relative to such

credit facilities, including a sanction letter.

(3)

If the consumer exercises his right of withdrawal, he shall

(a) in order to give effect to the withdrawal before the

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

notify the creditor in conformity with the information

given to the consumer under regulation 12(1)(g) by

means which can be proved according to law. The

deadline shall be deemed to have been met if that

notification, if in writing or on a durable medium that

is available and accessible to the creditor, is

dispatched before the deadline expires;

(b) repay to the creditor the credit provided and pay the

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

the borrowing rate specified in the credit agreement,

from the date the credit was drawn down until the date

it is repaid, without any undue delay and no later than

thirty (30) running days after giving a notification in

accordance with paragraph (a)

Provided that the creditor shall not be entitled to any other

compensation from the consumer in the event of withdrawal, except

compensation for any non-refundable charges paid by the creditor

to any public administrative body.

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

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

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

consumer shall not be bound by the ancillary service agreement if

the consumer exercises his right of withdrawal in accordance with

this regulation.

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

the Distance Selling (Retail Financial Services) Regulations and

regulation 6 of the Distance Selling Regulations shall not apply.

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

agreements which by law are required to be concluded before a

Notary Public

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

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

consumer is guaranteed the rights provided for under regulations 7

and 12.

(1) Where the consumer has exercised a right of

withdrawal, concerning a contract for the supply of goods or

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

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

grantor of credit where

(a) in order to buy goods or obtain services, the consumer

enters into a credit agreement with a creditor other

than the supplier of such goods or services;

(b) the grantor of the credit and the supplier of the goods

or services have a pre-existing agreement whereunder

credit is made exclusively by that grantor of credit to

customers of that supplier for the acquisition of goods

or services from that supplier;

(c) the consumer referred to in paragraph (a) obtains his

credit pursuant to that pre-existing agreement;

(d) the goods or services covered by the linked credit

agreement are either not supplied, are supplied only in

part, or are not in conformity with the contract for the

supply thereof; and

(e) the consumer has pursued his remedies against the

supplier but has failed to obtain the remedy to which

he is entitled to according to the law or the contract for

the supply of goods or services.

(1) A consumer shall have the right to discharge his

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

before the agreed termination.

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

termination

(a) the consumer shall be entitled to a reduction of total

costs of the credit consisting of the interest and the

costs for the remaining duration of the credit; and

(b) the creditor shall be entitled to a fair and objectively

justified compensation for possible costs directly

linked to early repayment of credit so long as the early

repayment falls within a period for which the

borrowing rate is fixed.

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

may not exceed

(a) 1% of the amount of credit repaid early, if the period

of time between the early repayment and the agreed

termination of the credit agreement exceeds one year;

and

(b) 0.5% of the amount of credit repaid early, if the period

of time between the early repayment and the agreed

termination of the credit agreement does not exceed

one year.

(4)

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

amount of compensation which may be claimed by the

creditor shall exceptionally not apply if the creditor

proves that the loss suffered from early repayment

exceeds the amount determined under the said sub-

regulation (3); and

(b) A consumer may claim a corresponding reduction to

the compensation claimed by the creditor if the

compensation claimed exceeds the loss actually

suffered.

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

shall consist of the difference between the initial agreed interest

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

money repaid early on the market at the time of early repayment.

Consideration shall also be given to the impact of early repayment

on administrative costs.

(5) Compensation for early repayment under sub-regulation

(2)(b) shall not apply:-

(a) if the repayment has been made under an insurance

contract intended to provide a credit repayment

guarantee;

(b) in the case of an overdraft facility;

(c) if the repayment falls within a period for which the

borrowing rate is not fixed; or

(d) if the amount of early repayment does not exceed three

thousand euro (€3,000) within any period of twelve

months.

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

to the amount of interest which the consumer would have paid

during the period between the early repayment and the agreed date

of termination of the credit agreement.

(1) Creditors shall have adequate policies and procedures to

ensure that they make efforts to exercise, where appropriate,

reasonable forbearance before enforcement proceedings are

instituted. The said forbearance measures shall take into account,

among other elements, the consumer’s circumstances and among

other possibilities may consist of

(a)

a total or partial refinancing of a credit agreement;

(b)

a modification of the existing terms and

conditions of a credit agreement, which may include among

others

(i)

extending the term of the credit agreement;

(ii)

changing the type of credit agreement;

(iii) deferring payment of all or part of the

instalment repayment for a period;

(iv)

changing the interest rate;

(v)

offering a payment holiday;

(vi)

partial repayments;

(vii)

currency conversions;

(viii) partial forgiveness and debt consolidation

Provided that the list of forbearance measures stipulated in

this sub-regulation is without prejudice to rules set out in national

law, including in particular the national provisions implementing

the European Banking Authority Guidelines on management of

non-performing and forborne exposures (EBA/GL/2018/06) and the

European Central Bank Guidance to banks on non-performing

loans.

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

on the consumer arising from the default, those charges shall not be

greater than is necessary to compensate the creditor for costs it has

incurred as a result of the default.

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

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

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

defence available to him against the original creditor. Such defence

may also include the right to set-off

Provided that set-off may only be raised in accordance with

the relevant provisions of articles 1196 to 1204 of the Civil Code,

which shall apply irrespective of anything to the contrary contained

in the credit agreement.

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

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

assignment, except where the original creditor, by agreement with

the assignee, continues to service the credit towards the consumer.

(1) Where a consumer enters into an agreement to open a

current account and the consumer is allowed an overrun, the

agreement shall contain in addition information relating to

(a) the borrowing rate;

(b) the conditions governing the application of that rate;

(c) the index or reference rate applicable to the initial

borrowing rate;

(d) the charges applicable from the time the credit

agreement is concluded; and

(e) the conditions under which those charges may be

changed, if applicable.

(2)

In the event of a significant overrunning exceeding a period

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

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

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

interest on arrears which are applicable.

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

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

PART 6

MISCELLANEOUS

(1) Without prejudice to the provisions relating to unfair

commercial practices under the Act, where a credit advertisement

includes an interest rate or any figure relating to the cost of the

credit to the consumer, the advertisement shall also include

standard information by means of a representative example in

accordance with sub-regulation (2).

(2) The representative example referred to in sub-regulation (1)

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

following items of information

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

(b) particulars of any charges included in the total cost of

credit to the consumer;

(c) the total amount of credit;

(d) the annual percentage rate of charge except in the case

of credit agreements referred to in regulation 8;

(e) the duration of the agreement;

(f)

in the case of credit in the form of a deferred payment

for specific goods or services, the cash price and the

amount of any advance payment;

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

consumer; and

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

(3)

(a) A credit advertisement shall include a clear and

concise statement in respect of any obligation to enter

into a contract in respect of an ancillary service

relating to the credit agreement, in particular an

insurance service, where

(i)

the conclusion of that service is compulsory in

order to obtain the credit or to obtain it on the

terms and conditions advertised; and

(ii) the cost of that service cannot be determined in

advance.

(b) The obligation referred to in paragraph (a) shall be

advertised in a prominent way and accompanied by the

annual percentage rate of charge.

(1) A creditor from another Member State who intends to

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

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

databases which are available in Malta in order to assess the

creditworthiness of the consumer

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

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

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

contrary to the public policy or public security of Malta.

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

consultation of a database, the creditor shall inform the consumer

immediately and without charge of the result of such consultation

and of the particulars of the database consulted.

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

the Data Protection Act.

(1) The annual percentage rate of charge means the total

c o s t o f t h e c r e d i t t o t h e c o n s u m e r, e x p r e s s e d a s a n a n n u a l

percentage of the total amount of credit.

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

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

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

a n d c o n s u m e r, s h a l l b e c a l c u l a t e d i n a c c o r d a n c e w i t h t h e

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

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

credit to the consumer

(a) the costs of maintaining an account recording both

payment transactions and drawdowns;

(b) the costs of using a means of payment for both

payment transactions and drawdowns; and

(c) other costs relating to payment transactions.

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

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

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

been clearly and separately shown in the consumer credit

agreement or in any other agreement concluded with the consumer.

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

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

determined, with the exception of any charges payable by the

consumer for non-compliance with any of his commitments laid

down in the credit agreement and charges other than the purchase

whether the transaction is effected in cash or on credit.

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

shall be based on the assumption that

(a) the credit agreement is to remain valid for the period

agreed and that the creditor and the consumer will

fulfil their obligations under the terms and by the dates

specified in the credit agreement; and

(b) the borrowing rate and other charges will remain fixed

in relation to the initial level and will remain

applicable until the end of the credit agreement in the

circumstance that the credit agreement contains a

clause allowing variations in the borrowing rate and,

where applicable, charges contained in the annual

percentage rate of charge but unquantifiable at the

time of calculation.

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

Third Schedule may be used in calculating the annual percentage

rate of charge.

It shall be the responsibility of the Director General under

these regulations to

(a) monitor the working and effectiveness of these

regulations and to take such measures as he deems

necessary in order to ensure compliance with these

regulations;

(b) supervise the creditors and credit intermediaries, and

ensure that there is compliance by them with the

obligations identified under these regulations; and

(c) ensure that the rights granted to consumers by these

regulations are not diminished by the provision of any

other law.

(d) investigate any alleged infringements and, as may be

necessary, institute judicial proceedings before the Civil

Court according to the Act.

(1)

The Director General shall proceed according to

article 12, and where, upon the conclusion of an investigation, it

appears prima facie to the Director General, that an infringement of

these regulations has occurred, the Director General shall institute

judicial proceedings against the person concerned before the Civil

Court by means of a sworn application and the provisions of Part IIA

shall apply to these judicial proceedings.

(2)

Subject to the provisions of Part IIA, the Civil Court, in its

judgement, shall impose a penalty and issue such order, or take such

measure as it may deem appropriate in terms of the Act, upon any

person who contravenes or fails to comply with any of the provisions

of these regulations.

(3)

Any person who contravenes any provision of these

regulations shall be guilty of an infringement punishable by a penalty

of not less than one thousand euro (€1,000) and not exceeding forty-

five thousand euro (€45,000).

(4)

In the case of non-compliance with a compliance order, the

Civil Court shall also impose a daily penalty of not less than one

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

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

(5)

In determining the amount of the penalty specified in this

regulation, the Civil Court shall be guided by the following

considerations

(a) for infringements under these regulations, the basic

amount of the penalty shall be twenty thousand euro

(€20,000)

Provided that the Civil Court may, in setting the penalty,

take into account circumstances that may lead to an increase or

decrease in the basic amount

Provided further that the Civil Court shall do so on the

basis of an overall assessment which takes into account all the

relevant circumstances, including the value of the credit under

the credit agreement and the turnover of the creditor;

(b) the Civil Court may impose a higher penalty than the

basic amount where there are aggravating

circumstances, having regard, in particular, to the

gravity and duration of the infringement and, or to the

amount of gains improperly made as a result of the

infringement;

(c) without prejudice to the generality of paragraph (b), the

following shall in all cases be deemed as aggravating

circumstances

(i)

a second or subsequent infringement;

(ii)

where the infringement constitutes an

unfair commercial practice in terms of the Act; and

(d)

the basic amount may be decreased where the

Civil Court finds that there are mitigating circumstances in

particular

(i)

where the creditor or the credit

intermediary, as the case may be, provides evidence that

he terminated the infringement concerned prior to or as

soon as the Director General commenced an

investigation;

(ii)

where the creditor or the credit

intermediary, as the case may be, provides evidence that

he has taken adequate steps to reduce the negative

effects of the infringement.

(6)

In discharging his functions under these regulations, the

Director General shall have the same powers as prescribed under the

Act except where competences are assigned to the Civil Court by the

Act and by the Malta Competition and Consumer Affairs Authority

Act.

(7)

Any person who feels aggrieved by a judgement, order,

penalty or measure issued by the Civil Court, may appeal before the

Court of Appeal, on any point of law and, or of fact, by means of an

application filed in the registry of the Court of Appeal within twenty

days from the date of the judgment of the Civil Court

Provided that the Court of Appeal shall appoint the case for

hearing by not later than six months from the judgement of the Civil

Court.

(1) The provisions of these regulations shall prevail and

apply notwithstanding anything to the contrary contained in any

credit agreement entered into by the consumer.

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

him by these regulations shall be null and void.

(3) The provisions of these regulations cannot 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 non-Member State, the protection granted by these

regulations shall continue to apply where the credit agreement has a

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

(1) The Consumer Credit Regulations, 2005 * , shall, as

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

except for -

(a) regulation 5, the Second Schedule and the Third

Schedule; and

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

First, Fourth and Fifth Schedules in so far as

applicable to home loans.

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

into under the Consumer Credit Regulations, 2005, before the

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

regulated by the terms and conditions applicable thereto.

*eventually repealed by Legal Notice 415 of 2011, as from 1st January, 2012.

CONSUMER CREDIT

CONSUMER CREDIT

41666 jum (jiġifieri 365/12) irrispettivament minn jekk hix sena biżestili

jew le.

(d) Ir-riżultat tal-kalkolu għandu jiġi espress b'eżattezza ta' mill-inqas punt

deċimali wieħed. Jekk il-figura fil-punt deċimali li ssegwi hija akbar minn

jew ugwali għal 5, iċ-ċifra f'dan il-post deċimali partikolari għandha tiżdied

b'wieħed.

(e) L-ekwazzjoni tista' tinkiteb mill-ġdid bl-użu ta' somma waħda u l-kunċett ta'

flows (Ak), li jkun pożittiv jew negattiv, fi kliem ieħor jew imħallas jew

riċevut matul il-perjodi 1 sa k, espress fi snin, jiġifieri

S huwa l-bilanċ preżenti tal-flows. Jekk l-għan hu li tinżamm l-ekwivalenza tal-flows, il-

valur ikun żero.

Is-suppożizzjonijiet miżjuda għall-kalkolu tar-rata perċentwali annwali ta’

imposta għandhom ikunu kif ġej

(a) Jekk ftehim ta’ kreditu jagħti lill-konsumatur libertà fil-ġbid ta’ kreditu,

l-ammont totali ta’ kreditu għandu jitqies li jkun miġbud

immedjatament u interament.

(b) Jekk ftehim ta’ kreditu jagħti lill-konsumatur il-libertà ta’ ġbid ta’

kreditu b’mod ġenerali iżda jimponi, fost il-modi differenti ta’ ġbid,

limitu fir-rigward tal-ammont ta’ kreditu u l-perjodu ta’ żmien, l-

ammont ta’ kreditu għandu jitqies bħala li nġibed fl-aktar data bikrija

prevista fil-ftehim u skont dawk il-limiti ta’ ġbid.

(ċ) Jekk ftehim ta’ kreditu jipprovdi modi differenti għall-ġbid ta’ kreditu

b’imposti jew rati tat-teħid ta’ self differenti, l-ammont totali tal-kreditu

għandu jitqies bħala li ġie miġbud fl-ogħla imposta u rata ta’ teħid ta’

self applikata għall-mekkaniżmu għall-ġbid ta’ kreditu l-iktar komuni

għal dan it-tip ta’ ftehim ta’ kreditu.

(d) Fil-każ ta’ faċilità ta’ overdraft, l-ammont totali ta’ kreditu għandu jiġi

meqjus li huwa miġbud kompletament u għat-tul ta’ żmien kollu tal-

ftehim ta’ kreditu. Jekk id-duratura tal-faċilità ta’ overdraft mhix

magħrufa, ir-rata perċentwali annwali ta’ imposta għandha tiġi

kkalkolata fuq is-suppożizzjoni li t-tul ta’ żmien tal-kreditu huwa tliet

xhur.

(e) Fil-każ ta’ ftehim ta’ kreditu bla skadenza, ħlief faċilità ta’ overdraft,

għandu jiġi meqjus li

(i)

il-kreditu pprovdut għall-perjodu ta’ sena li jibda mid-data tal-

ġbid tal-bidu, u li l-ħlas finali magħmul mill-konsumatur iħassar

il-bilanċ tal-kapital, l-imgħax u imposti oħrajn, jekk ikun hemm;

(ii) il-kapital huwa mħallas mill-ġdid mill-konsumatur fi ħlasijiet

indaqs kull xahar, li jibdew xahar wara d-data tal-ġbid tal-bidu.

Madankollu, f’każi fejn il-kapital għandu biss jitħallas mill-ġdid

bis-sħiħ, fi ħlas waħdieni, f’kull perjodu ta’ ħlas, ġbid suċċessivi

u ħlasijiet mill-ġdid tal-kapital kollu mill-konsumatur għandhom

jitqiesu li jsiru fil-perjodu ta’ sena. L-imgħax u imposti oħrajn

għandhom jiġu applikati skont il-ġbid u l-ħlasijiet mill-ġdid tal-

kapital u kif provdut fil-ftehim ta’ kreditu.

Għall-għanijiet ta’ dan il-paragrafu, ftehim ta’ kreditu bla skadenza

huwa ftehim ta’ kreditu mingħajr tul ta’ żmien fiss u jinkludi krediti li

għandhom jitħallsu mill-ġdid bis-sħiħ fil-perjodu jew wara l-perjodu,

iżda la darba jitħallsu mill-ġdid, isiru disponibbli mill-ġdid biex

jinġibdu.

(f)

Fil-każ ta’ ftehim ta’ kreditu, ħlief overdrafts u krediti bla skadenza kif

imsemmi fis-suppożizzjonijiet stipulati fil-paragrafi (d) u (e)

(i)

jekk id-data jew l-ammont ta’ ġbid mill-ġdid tal-kapital, li għandu

jsir mill-konsumatur ma jistgħux jiġu aċċertati, għandu jitqies li l-

ħlas mill-ġdid isir fl-iktar data qrib ipprovduta fil-ftehim ta’

kreditu u huwa għall-inqas ammont li jipprovdi għalih il-ftehim

ta’ kreditu;

(ii) jekk id-data tal-konklużjoni tal-ftehim ta’ kreditu mhix magħrufa,

id-data tal-bidu tal-ġbid għandha tkun meqjusa bħala d-data li

tirriżulta fl-inqas intervall bejn dik id-data u d-data tal-ewwel ħlas

li għandu jsir mill-konsumatur.

(g) Fejn id-data u l-ammont ta’ ħlas li għandu jsir mill-konsumatur ma

jistgħux jiġu aċċertati abbażi tal-ftehim ta’ kreditu jew is-

suppożizzjonijiet stipulati fil-paragrafi (d), (e) jew (f), għandu jitqies li

l-ħlas isir skont id-dati u l-kundizzjonijiet meħtieġa mill-kreditur u,

meta dawn ma jkunux magħrufa

(i)

imposti tal-interessi jitħallsu flimkien mal-ħlas mill-ġdid tal-

kapital;

(ii) imposta bla interess espressa f’somma waħdanija titħallas fid-data

tal-konklużjoni tal-ftehim ta’ kreditu;

(iii) imposti bla interess espressi f’diversi ħlasijiet jitħallsu

f’intervalli regolari, jibdew mad-data tal-ewwel ħlas mill-ġdid

tal-kapital, u jekk l-ammont ta’ ħlasijiet tali mhuwiex magħruf

għandhom jitqiesu bħala ammonti ndaqs;

(iv) il-ħlas finali jħassar il-bilanċ tal-kapital, l-imgħax u imposti

oħrajn, jekk ikun hemm.

(h) Jekk il-limitu massimu applikabbli għall-kreditu għadu ma ġiex

miftiehem, dak il-limitu massimu jitqies li hu EUR 1500.

(i)

Jekk jiġu offruti rati tat-teħid ta’ self u imposti differenti għal perjodu

KREDITU LILL-KONSUMATUR

jew ammont limitat, ir-rata tat-teħid ta’ self u l-imposti għandhom

jitqiesu li huma l-ogħla rata għat-tul ta’ żmien kollu tal-ftehim ta’

kreditu.

(j)

Għal ftehim ta’ kreditu tal-konsumatur li għalihom hija miftehma rata

tat-teħid ta’ self fissa fir-rigward tal-perjodu inizjali, li fi tmiem tiegħu

tiġi ddeterminata rata tat-teħid ta’ self ġdida u sussegwentement

perjodikament aġġustata skont indikatur miftiehem, il-kalkolu tar-rata

perċentwali annwali tal-imposti għandha tkun ibbażata fuq is-

suppożizzjoni li, fi tmiem il-perjodu ta’ rata tat-teħid ta’ self fissa, ir-

rata tat-teħid tas-self tkun l-istess bħal meta sar il-kalkolu tar-rata

perċentwali annwali, abbażi tal-valur tal-indikatur miftiehem f’dak iż-

żmien.