DIRECTIVES
DIRECTIVE 2008/48/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 23 April 2008
on credit agreements for consumers and repealing Council Directive 87/102/EEC
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,
Having regard to the Treaty establishing the European Community,
and in particular Article 95 thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Economic and
Social Committee (1
),
Acting in accordance with the procedure laid down in Article 251
of the Treaty (2
),
Whereas:
(1) Council Directive 87/102/EEC of 22 December 1986 for
the approximation of the laws, regulations and administrative
provisions of the Member States concerning
consumer credit (3
) lays down rules at Community level
concerning consumer credit agreements.
(2) In 1995, the Commission presented a report on the
operation of Directive 87/102/EEC and undertook a broad
consultation of the interested parties. In 1997, the
Commission presented a summary report of reactions to
the 1995 report. A second report was produced in 1996
on the operation of Directive 87/102/EEC.
(3) Those reports and consultations revealed substantial
differences between the laws of the various Member States
in the field of credit for natural persons in general and
consumer credit in particular. An analysis of the national
laws transposing Directive 87/102/EEC shows that Member
States use a variety of consumer protection mechanisms, in
addition to Directive 87/102/EEC, on account of differences
in the legal or economic situation at national level.
(4) The de facto and de jure situation resulting from those
national differences in some cases leads to distortions of
competition among creditors in the Community and
creates obstacles to the internal market where Member
States have adopted different mandatory provisions more
stringent than those provided for in Directive 87/102/EEC.
It restricts consumers' ability to make direct use of the
gradually increasing availability of cross-border credit.
Those distortions and restrictions may in turn have
consequences in terms of the demand for goods and
services.
(5) In recent years the types of credit offered to and used by
consumers have evolved considerably. New credit instruments
have appeared, and their use continues to develop. It
is therefore necessary to amend existing provisions and to
extend their scope, where appropriate.
(6) In accordance with the Treaty, the internal market
comprises an area without internal frontiers in which the
free movement of goods and services and freedom of
establishment are ensured. The development of a more
transparent and efficient credit market within the area
without internal frontiers is vital in order to promote the
development of cross-border activities.
(7) In order to facilitate the emergence of a well-functioning
internal market in consumer credit, it is necessary to make
provision for a harmonised Community framework in a
number of core areas. In view of the continuously
developing market in consumer credit and the increasing
mobility of European citizens, forward-looking Community
legislation which is able to adapt to future forms of credit
and which allows Member States the appropriate degree of
flexibility in their implementation should help to establish a
modern body of law on consumer credit.
L 133/66 EN Official Journal of the European Union 22.5.2008
(1
) OJ C 234, 30.9.2003, p. 1.
(2
) Opinion of the European Parliament of 20 April 2004 (OJ C 104 E,
30.4.2004, p. 233), Council common position of 20 September
2007 (OJ C 270 E, 13.11.2007, p. 1) and Position of the European
Parliament of 16 January 2008 (not yet published in the Official
Journal). Council Decision of 7 April 2008.
(3
) OJ L 42, 12.2.1987, p. 48. Directive as last amended by Directive
98/7/EC of the European Parliament and of the Council (OJ L 101,
1.4.1998, p. 17).
(8) It is important that the market should offer a sufficient
degree of consumer protection to ensure consumer
confidence. Thus, it should be possible for the free
movement of credit offers to take place under optimum
conditions for both those who offer credit and those who
require it, with due regard to specific situations in the
individual Member States.
(9) Full harmonisation is necessary in order to ensure that all
consumers in the Community enjoy a high and equivalent
level of protection of their interests and to create a genuine
internal market. Member States should therefore not be
allowed to maintain or introduce national provisions other
than those laid down in this Directive. However, such
restriction should only apply where there are provisions
harmonised in this Directive. Where no such harmonised
provisions exist, Member States should remain free to
maintain or introduce national legislation. Accordingly,
Member States may, for instance, maintain or introduce
national provisions on joint and several liability of the seller
or the service provider and the creditor. Another example
of this possibility for Member States could be the
maintenance or introduction of national provisions on
the cancellation of a contract for the sale of goods or supply
of services if the consumer exercises his right of withdrawal
from the credit agreement. In this respect Member States, in
the case of open-end credit agreements, should be allowed
to fix a minimum period needing to elapse between the
time when the creditor asks for reimbursement and the day
on which the credit has to be reimbursed.
(10) The definitions contained in this Directive determine the
scope of harmonisation. The obligation on Member States
to implement the provisions of this Directive should
therefore be limited to its scope as determined by those
definitions. However, this Directive should be without
prejudice to the application by Member States, in
accordance with Community law, of the provisions of this
Directive to areas not covered by its scope. A Member State
could thereby maintain or introduce national legislation
corresponding to the provisions of this Directive or certain
of its provisions on credit agreements outside the scope of
this Directive, for instance on credit agreements involving
amounts less than EUR 200 or more than EUR 75 000.
Furthermore, Member States could also apply the provisions
of this Directive to linked credit which does not fall
within the definition of a linked credit agreement as
contained in this Directive. Thus, the provisions on linked
credit agreements could be applied to credit agreements
that serve only partially to finance a contract for the supply
of goods or provision of a service.
(11) In the case of specific credit agreements to which only some
provisions of this Directive are applicable, Member States
should not be allowed to adopt national legislation
implementing other provisions of this Directive. However,
Member States should remain free to regulate, in their
national legislation, such types of credit agreements as
regards other aspects not harmonised by this Directive.
(12) 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 them for the duration of their
provision by means of instalments, may differ considerably,
in terms of the interests of the contractual parties involved,
and the modalities and performance of the transactions,
from credit agreements covered by this Directive. Therefore,
it should be clarified that such agreements are not regarded
as credit agreements for the purposes of this Directive. Such
types of agreement include, for example, an insurance
contract where the insurance is paid for in monthly
instalments.
(13) This Directive should not apply to certain types of credit
agreement, such as deferred debit cards, under the terms of
which the credit has to be repaid within three months and
only insignificant charges are payable.
(14) Credit agreements covering the granting of credit secured
by real estate should be excluded from the scope of this
Directive. That type of credit is of a very specific nature.
Also, credit agreements the purpose of which is to finance
the acquisition or retention of property rights in land or in
an existing or projected building should be excluded from
the scope of this Directive. However, credit agreements
should not be excluded from the scope of this Directive
only because their purpose is the renovation or increase of
value of an existing building.
(15) The provisions of this Directive apply irrespective of
whether the creditor is a legal person or a natural person.
However, this Directive does not affect the right of Member
States to limit, in conformity with Community law, the
provision of credit for consumers to legal persons only or
to certain legal persons.
(16) Certain provisions of this Directive should apply to natural
and legal persons (credit intermediaries) who, in the course
of their trade, business or profession, for a fee, present or
offer credit agreements to consumers, assist consumers by
undertaking preparatory work in respect of credit agreements
or conclude credit agreements with consumers on
behalf of the creditor. Organisations which allow their
identity to be used in promoting credit products, such as
credit cards, and which may also recommend those
products to their members should not be regarded as
credit intermediaries for the purposes of this Directive.
(17) This Directive regulates only certain obligations of credit
intermediaries in relation to consumers. Member States
should therefore remain free to maintain or introduce
22.5.2008 EN Official Journal of the European Union L 133/67
additional obligations incumbent on credit intermediaries,
including the conditions under which a credit intermediary
may receive fees from a consumer who has requested his
service.
(18) Consumers should be protected against unfair or misleading
practices, in particular with respect to the disclosure of
information by the creditor, in line with Directive 2005/29/
EC of the European Parliament and of the Council of
11 May 2005 concerning unfair business-to-consumer
commercial practices in the internal market (‘Unfair
Commercial Practices Directive) (1
). However, this Directive
should contain specific provisions on advertising concerning
credit agreements as well as certain items of standard
information to be provided to consumers in order to enable
them, in particular, to compare different offers. Such
information should be given in a clear, concise and
prominent way by means of a representative example. A
ceiling should be provided where it is not possible to
indicate the total amount of credit as the total sums made
available, in particular where a credit agreement gives the
consumer freedom of drawdown with a limitation with
regard to the amount. The ceiling should indicate the upper
limit of credit which can be made available to the
consumer. In addition, Member States should remain free
to regulate information requirements in their national law
regarding advertising which does not contain information
on the cost of the credit.
(19) In order to enable consumers to make their decisions in full
knowledge of the facts, they should receive adequate
information, which the consumer may take away and
consider, prior to the conclusion of the credit agreement,
on the conditions and cost of the credit and on their
obligations. To ensure the fullest possible transparency and
comparability of offers, such information should, in
particular, include the annual percentage rate of charge
applicable to the credit, determined in the same way
throughout the Community. As the annual percentage rate
of charge can at this stage be indicated only through an
example, such example should be representative. Therefore,
it should correspond, for instance, to the average duration
and total amount of credit granted for the type of credit
agreement under consideration and, if applicable, to the
goods purchased. When determining the representative
example, the frequency of certain types of credit agreement
in a specific market should also be taken into account. As
regards the borrowing rate, the frequency of instalments
and the capitalisation of interest, creditors should use their
conventional method of calculation for the consumer credit
concerned.
(20) The total cost of the credit to the consumer should
comprise all the costs, including interest, commissions,
taxes, fees for credit intermediaries and any other fees
which the consumer has to pay in connection with the
credit agreement, except for notarial costs. Creditors’ actual
knowledge of the costs should be assessed objectively,
taking into account the requirements of professional
diligence.
(21) Credit agreements in which a borrowing rate is periodically
revised in line with changes occurring in a reference rate
referred to in the credit agreement should not be regarded
as credit agreements with a fixed borrowing rate.
(22) Member States should remain free to maintain or introduce
national provisions prohibiting the creditor from requiring
the consumer, in connection with the credit agreement, to
open a bank account or conclude an agreement in respect
of another ancillary service, or to pay the expenses or fees
for such bank accounts or other ancillary services. In those
Member States where such combined offers are allowed,
consumers should be informed before the conclusion of the
credit agreement about any ancillary services which are
compulsory in order for the credit to be obtained in the
first place or on the terms and conditions marketed. The
costs payable in respect of those ancillary services should be
included in the total cost of the credit; alternatively, if the
amount of such costs cannot be determined in advance,
consumers should receive adequate information about the
existence of costs at a pre-contractual stage. The creditor
must be presumed to have knowledge of the costs of the
ancillary services which he offers to the consumer himself,
or on behalf of a third party, unless the price thereof
depends on the specific characteristics or situation of the
consumer.
(23) For specific types of credit agreements, however, it is
appropriate, in order to ensure an adequate level of
consumer protection without placing an excessive burden
on creditors or, where applicable, credit intermediaries, to
restrict the pre-contractual information requirements of
this Directive, taking into account the specific character of
such types of agreements.
(24) The consumer needs to be given comprehensive information
before he concludes the credit agreement, regardless of
whether or not a credit intermediary is involved in the
marketing of the credit. Therefore, in general, the precontractual
information requirements should also apply to
credit intermediaries. However, where suppliers of goods
and services act as credit intermediaries in an ancillary
capacity, it is not appropriate to burden them with the legal
obligation to provide the pre-contractual information in
accordance with this Directive. Suppliers of goods and
services may be deemed, for example, to be acting as credit
intermediaries in an ancillary capacity if their activity as
credit intermediaries is not the main purpose of their trade,
business or profession. In those cases, a sufficient level of
consumer protection is still achieved since the creditor is
responsible for ensuring that the consumer receives the full
pre-contractual information, either from the intermediary,
if the creditor and the intermediary so agree, or in some
other appropriate manner.
(25) The potentially binding character of the information to be
provided to the consumer prior to the conclusion of the
credit agreement and the period of time during which the
creditor is to be bound by it may be regulated by the
Member States.
(26) Member States should take appropriate measures to
promote responsible practices during all phases of the
L 133/68 EN Official Journal of the European Union 22.5.2008
(1
) OJ L 149, 11.6.2005, p. 22.
credit relationship, taking into account the specific features
of their credit market. Those measures may include, for
instance, the provision of information to, and the education
of, consumers, including warnings about the risks attaching
to default on payment and to over-indebtedness. In the
expanding credit market, in particular, it is important that
creditors should not engage in irresponsible lending or give
out credit without prior assessment of creditworthiness,
and the Member States should carry out the necessary
supervision to avoid such behaviour and should determine
the necessary means to sanction creditors in the event of
their doing so. Without prejudice to the credit risk
provisions of Directive 2006/48/EC of the European
Parliament and of the Council of 14 June 2006 relating
to the taking up and pursuit of the business of credit
institutions (1
), creditors should bear the responsibility of
checking individually the creditworthiness of the consumer.
To that end, they should be allowed to use information
provided by the consumer not only during the preparation
of the credit agreement in question, but also during a longstanding
commercial relationship. The Member States'
authorities could also give appropriate instructions and
guidelines to creditors. Consumers should also act with
prudence and respect their contractual obligations.
(27) Despite the pre-contractual information to be provided, the
consumer may still need additional assistance in order to
decide which credit agreement, within the range of
products proposed, is the most appropriate for his needs
and financial situation. Therefore, Member States should
ensure that creditors provide such assistance in relation to
the credit products which they offer to the consumer.
Where appropriate, the relevant pre-contractual information,
as well as the essential characteristics of the products
proposed, should be explained to the consumer in a
personalised manner so that the consumer can understand
the effects which they may have on his economic situation.
Where applicable, this duty to assist the consumer should
also apply to credit intermediaries. Member States could
determine when and to what extent such explanations are
to be given to the consumer, taking into account the
particular circumstances in which the credit is offered, the
consumer's need for assistance and the nature of individual
credit products.
(28) To assess the credit status of a consumer, the creditor
should also consult relevant databases; the legal and actual
circumstances may require that such consultations vary in
scope. To prevent any distortion of competition among
creditors, it should be ensured that creditors have access to
private or public databases concerning consumers in a
Member State where they are not established under nondiscriminatory
conditions compared with creditors in that
Member State.
(29) Where a decision to reject an application for credit is based
on the consultation of a database, the creditor should
inform the consumer of this fact and of the particulars of
the database consulted. However, the creditor should not be
obliged to give such information when this is prohibited by
other Community legislation, for example legislation on
money laundering or the financing of terrorism. Furthermore,
such information should not be given if this would
be contrary to objectives of public policy or public security,
such as the prevention, investigation, detection or prosecution
of criminal offences.
(30) This Directive does not regulate contract law issues related
to the validity of credit agreements. Therefore, in that area,
the Member States may maintain or introduce national
provisions which are in conformity with Community law.
Member States may regulate the legal regime governing the
offer to conclude the credit agreement, in particular when it
is to be given and the period during which it is to be
binding on the creditor. If such an offer is made at the same
time as the pre-contractual information provided for by this
Directive is given, it should, like any additional information
the creditor may wish to give to the consumer, be provided
in a separate document which may be annexed to the
Standard European Consumer Credit Information.
(31) In order to enable the consumer to know his rights and
obligations under the credit agreement, it should contain all
necessary information in a clear and concise manner.
(32) In order to ensure full transparency, the consumer should
be provided with information concerning the borrowing
rate, both at a pre-contractual stage and when the credit
agreement is concluded. During the contractual relationship,
the consumer should further be informed of changes
to the variable borrowing rate and changes to the payments
caused thereby. This is without prejudice to provisions of
national law not related to consumer information which lay
down conditions for, or prescribe the consequences of,
changes, other than changes concerning payments, in
borrowing rates and other economic conditions governing
the credit, for instance rules providing that the creditor may
change the borrowing rate only where there is a valid
reason for such change or that the consumer may terminate
the contract should there be a change in the borrowing rate
or in some other economic condition concerning the credit.
(33) The contracting parties should have the right to effect a
standard termination of an open-end credit agreement. In
addition, if agreed in the credit agreement, the creditor
should have the right to suspend the consumer's right to
draw down on an open-end credit agreement for objectively
justified reasons. Such reasons may include, for instance,
suspicion of an unauthorised or fraudulent use of the credit
or a significantly increased risk of the consumer being
unable to fulfil his obligation to repay the credit. This
Directive does not affect national law in the area of contract
law regulating the rights of the contracting parties to
terminate the credit agreement on the basis of a breach of
contract.
22.5.2008 EN Official Journal of the European Union L 133/69
(1
) OJ L 177, 30.6.2006, p. 1. Directive as last amended by Directive
2008/24/EC (OJ L 81, 20.3.2008, p. 38).
(34) In order to approximate the procedures for exercising the
right of withdrawal in similar areas, it is necessary to make
provision for a right of withdrawal without penalty and
with no obligation to provide justification, under conditions
similar to those provided for by Directive 2002/65/EC
of the European Parliament and of the Council of
23 September 2002 concerning the distance marketing of
consumer financial services (1
).
(35) Where a consumer withdraws from a credit agreement in
connection with which he has received goods, in particular
from a purchase in instalments or from a hiring or leasing
agreement providing for an obligation to purchase, this
Directive should be without prejudice to any regulation by
Member States of questions concerning the return of the
goods or any related questions.
(36) In some cases, national legislation already provides that
funds cannot be made available to the consumer before the
expiry of a specific deadline. In these cases, consumers may
wish to ensure that they receive the goods or services
purchased early. Therefore, in the case of linked credit
agreements, Member States may exceptionally provide that,
if the consumer explicitly wishes early receipt, the deadline
for the exercise of the right of withdrawal could be reduced
to the same deadline before which funds cannot be made
available.
(37) In the case of linked credit agreements, a relationship of
interdependence exists between the purchase of goods or
services and the credit agreement concluded for that
purpose. Therefore, where the consumer exercises his right
of withdrawal in respect of the purchase agreement, based
on Community law, he should no longer be bound by the
linked credit agreement. This should not affect national law
applicable to linked credit agreements in cases where a
purchase agreement has been voided or where the
consumer has exercised his right of withdrawal based on
national law. Nor should this affect the rights of consumers
granted by national provisions according to which no
commitment may be entered into between the consumer
and a supplier of goods or services, nor any payment made
between those persons, as long as the consumer has not
signed the credit agreement to finance the purchase of the
goods or services.
(38) Under certain conditions, the consumer should be allowed
to pursue remedies against the creditor in the event of
problems related to the purchase agreement. However,
Member States should determine to what extent and under
what conditions the consumer is required to pursue his
remedies against the supplier, in particular by bringing an
action against the latter, before being in a position to pursue
them against the creditor. This Directive should not deprive
consumers of their rights under national provisions
attaching joint and several liability to the seller or supplier
of services and to the creditor.
(39) The consumer should have the right to discharge his
obligations before the date agreed in the credit agreement.
In the case of early repayment, either in part or in full, the
creditor should be entitled to compensation for the costs
directly linked to the early repayment, taking into account
also any savings thereby made by the creditor. However, in
order to determine the method of calculating the
compensation, it is important to respect several principles.
The calculation of the compensation due to the creditor
should be transparent and comprehensible to consumers
already at the pre-contractual stage and in any case during
the performance of the credit agreement. In addition, the
calculation method should be easy for creditors to apply,
and supervisory control of the compensation by the
responsible authorities should be facilitated. Therefore,
and due to the fact that consumer credit is, given its
duration and volume, not financed by long-term funding
mechanisms, the ceiling for the compensation should be
fixed in terms of a flat-rate amount. This approach reflects
the special nature of credits for consumers and should not
prejudice the possibly different approach in respect of other
products which are financed by long-term funding
mechanisms, such as fixed-rate mortgage loans.
(40) Member States should have the right to provide that
compensation for early repayment may be claimed by the
creditor only on condition that the amount repaid over a
12-month period exceeds a threshold defined by Member
States. When fixing that threshold, which should not exceed
EUR 10 000, Member States should for instance take into
account the average amount of consumer credits in their
market.
(41) Assignment of the creditor's rights under a credit
agreement should not have the effect of placing the
consumer in a less favourable position. The consumer
should also be properly informed when the credit
agreement is assigned to a third party. However, where
the initial creditor, in agreement with the assignee,
continues to service the credit vis-à-vis the consumer, the
consumer has no significant interest in being informed of
the assignment. Therefore, a requirement at EU level that
the consumer be informed of the assignment in such cases
would be excessive.
(42) Member States should remain free to maintain or introduce
national rules providing for collective forms of communication
when this is necessary for purposes relating to the
effectiveness of complex transactions such as securitisations
or liquidation of assets that take place in the compulsory
administrative liquidation of banks.
(43) In order to promote the establishment and functioning of
the internal market and to ensure a high degree of
protection for consumers throughout the Community, it is
necessary to ensure the comparability of information
relating to annual percentage rates of charge throughout
the Community. Despite the uniform mathematical formula
for its calculation, the annual percentage rate of charge
provided for in Directive 87/102/EEC is not yet fully
L 133/70 EN Official Journal of the European Union 22.5.2008
(1
) OJ L 271, 9.10.2002, p. 16. Directive as last amended by Directive
2007/64/EC (OJ L 319, 5.12.2007, p. 1).
comparable throughout the Community. In individual
Member States different cost factors are taken into account
in the calculation thereof. This Directive should therefore
clearly and comprehensively define the total cost of a credit
to the consumer.
(44) In order to ensure market transparency and stability, and
pending further harmonisation, Member States should
ensure that appropriate measures for the regulation or
supervision of creditors are in place.
(45) This Directive respects fundamental rights and observes the
principles recognised in particular by the Charter of
Fundamental Rights of the European Union. In particular,
this Directive seeks to ensure full respect for the rules on
protection of personal data, the right to property, nondiscrimination,
protection of family and professional life,
and consumer protection pursuant to the Charter of
Fundamental Rights of the European Union.
(46) Since the objective of this Directive, namely the establishment
of common rules for certain aspects of the laws,
regulations and administrative provisions of the Member
States concerning consumer credit, cannot be sufficiently
achieved by the Member States and can therefore be better
achieved at Community level, the Community may adopt
measures, in accordance with the principle of subsidiarity
as set out in Article 5 of the Treaty. In accordance with the
principle of proportionality, as set out in that Article, this
Directive does not go beyond what is necessary in order to
achieve that objective.
(47) Member States should lay down rules on penalties
applicable to infringements of the national provisions
adopted pursuant to this Directive and ensure that they are
implemented. While the choice of penalties remains within
the discretion of the Member States, the penalties provided
for should be effective, proportionate and dissuasive.
(48) The measures necessary for the implementation of this
Directive should be adopted in accordance with Council
Decision 1999/468/EC of 28 June 1999 laying down the
procedures for the exercise of implementing powers
conferred on the Commission (1
).
(49) In particular, the Commission should be empowered to
adopt additional assumptions for the calculation of the
annual percentage rate of charge. Since those measures are
of general scope and are designed to amend non-essential
elements of this Directive, they must be adopted in
accordance with the regulatory procedure with scrutiny
provided for in Article 5a of Decision 1999/468/EC.
(50) In accordance with point 34 of the Interinstitutional
Agreement on better law-making (2), Member States are
encouraged to draw up, for themselves and in the interests
of the Community, their own tables illustrating, as far as
possible, the correlation between this Directive and the
transposition measures, and to make them public.
(51) Accordingly, taking account of the number of amendments
that need to be made to Directive 87/102/EEC due to the
evolution of the consumer credit sector and in the interests
of the clarity of Community legislation, that Directive
should be repealed and replaced by this Directive,
HAVE ADOPTED THIS DIRECTIVE:
CHAPTER I
SUBJECT MATTER, SCOPE AND DEFINITIONS
Article 1
Subject matter
The purpose of this Directive is to harmonise certain aspects of
the laws, regulations and administrative provisions of the
Member States concerning agreements covering credit for
consumers.
Article 2
Scope
1. This Directive shall apply to credit agreements.
2. This Directive shall not apply to the following:
(a) credit agreements 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;
(b) credit agreements the purpose of which is to acquire or
retain property rights in land or in an existing or projected
building;
(c) credit agreements involving a total amount of credit less
than EUR 200 or more than EUR 75 000;
(d) hiring or leasing agreements where an obligation to
purchase the object of the agreement is not laid down
either by the agreement itself or by any separate agreement;
such an obligation shall be deemed to exist if it is so
decided unilaterally by the creditor;
(e) credit agreements in the form of an overdraft facility and
where the credit has to be repaid within one month;
(f) credit agreements where the credit is granted free of interest
and without any other charges and credit agreements under
the terms of which the credit has to be repaid within three
months and only insignificant charges are payable;
(g) credit agreements 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 lower than
those prevailing on the market and which are not offered to
the public generally;
22.5.2008 EN Official Journal of the European Union L 133/71
(1
) OJ L 184, 17.7.1999, p. 23. Decision as amended by Decision 2006/
512/EC (OJ L 200, 22.7.2006, p. 11).
(2
) OJ C 321, 31.12.2003, p. 1.
(h) credit agreements which are concluded with investment
firms as defined in Article 4(1) of Directive 2004/39/EC of
the European Parliament and of the Council of 21 April
2004 on markets in financial instruments (1
) or with credit
institutions as defined in Article 4 of Directive 2006/48/EC
for the purposes of allowing an investor to carry out a
transaction relating to one or more of the instruments
listed in Section C of Annex I to Directive 2004/39/EC,
where the investment firm or credit institution granting the
credit is involved in such transaction;
(i) credit agreements which are the outcome of a settlement
reached in court or before another statutory authority;
(j) credit agreements which relate to the deferred payment, free
of charge, of an existing debt;
(k) credit agreements 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;
(l) credit agreements 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. In the case of credit agreements in the form of an overdraft
facility and where the credit has to be repaid on demand or
within three months, only Articles 1 to 3, Article 4(1), Article
4(2)(a) to (c), Article 4(4), Articles 6 to 9, Article
10(1), Article 10(4), Article 10(5), Articles 12, 15, 17 and
Articles 19 to 32 shall apply.
4. In the case of credit agreements in the form of overrunning,
only Articles 1 to 3, 18, 20 and 22 to 32 shall apply.
5. Member States may determine that only Articles 1 to 4, 6, 7
and 9, Article 10(1), points (a) to (h) and (l) of Article 10(2),
Article 10(4) and Articles 11, 13 and 16 to 32 shall apply to
credit agreements which are concluded by an organisation which:
(a) is established for the mutual benefit of its members;
(b) does not make profits for any other person than its
members;
(c) fulfils a social purpose required by domestic legislation;
(d) receives and manages the savings of, and provides sources
of credit to, its members only; and
(e) provides credit on the basis of an annual percentage rate of
charge which is lower than that prevailing on the market or
subject to a ceiling laid down by national law,
and whose membership is restricted to persons residing or
employed in a particular location or employees and retired
employees of a particular employer, or to persons meeting other
qualifications laid down under national law as the basis for the
existence of a common bond between the members.
Member States may exempt from the application of this Directive
credit agreements concluded by such an organisation where the
total value of all existing credit agreements entered into by the
organisation is insignificant in relation to the total value of all
existing credit agreements in the Member State in which the
organisation is based and the total value of all existing credit
agreements entered into by all such organisations in the Member
State is less than 1 % of the total value of all existing credit
agreements entered into in that Member State.
Member States shall each year review whether the conditions for
the application of any such exemption continue to exist and shall
take action to withdraw the exemption where they consider that
the conditions are no longer met.
6. Member States may determine that only Articles 1 to 4, 6, 7,
9, Article 10(1), points (a) to (i), (l) and (r) of Article 10(2),
Article 10(4), Articles 11, 13, 16 and Articles 18 to 32 shall
apply to credit agreements which provide for arrangements to be
agreed by the creditor and the consumer in respect of deferred
payment 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.
However, if the credit agreement falls within the scope of
paragraph 3, only the provisions of that paragraph shall apply.
Article 3
Definitions
For the purposes of this Directive, the following definitions shall
apply:
(a) ‘consumer’ means a natural person who, in transactions
covered by this Directive, is acting for purposes which are
outside his trade, business or profession;
(b) ‘creditor’ means a natural or legal person who grants or
promises to grant credit in the course of his trade, business
or profession;
L 133/72 EN Official Journal of the European Union 22.5.2008
(1
) OJ L 145, 30.4.2004, p. 1. Directive as last amended by Directive
2008/10/EC (OJ L 76, 19.3.2008, p. 33).
(c) ‘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;
(d) ‘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;
(e) ‘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;
(f) ‘credit intermediary’ means a natural or legal person who is
not acting as a creditor and who, in the course of his trade,
business or profession, for a fee, which may take a
pecuniary form or any other agreed form of financial
consideration:
(i) presents or offers credit agreements to consumers;
(ii) assists consumers by undertaking preparatory work in
respect of credit agreements other than as referred to
in (i); or
(iii) concludes credit agreements with consumers on
behalf of the creditor;
(g) ‘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 premiums, 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;
(h) ‘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;
(i) ‘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, where applicable
including the costs referred to in Article 19(2);
(j) ‘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;
(k) ‘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;
(l) ‘total amount of credit’ means the ceiling or the total sums
made available under a credit agreement;
(m) ‘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;
(n) ‘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; 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.
CHAPTER II
INFORMATION AND PRACTICES PRELIMINARY TO THE
CONCLUSION OF THE CREDIT AGREEMENT
Article 4
Standard information to be included in advertising
1. Any advertising concerning credit agreements which
indicates an interest rate or any figures relating to the cost of
the credit to the consumer shall include standard information in
accordance with this Article.
This obligation shall not apply where national legislation requires
the indication of the annual percentage rate of charge in
advertising concerning credit agreements which does not
indicate an interest rate or any figures relating to any cost of
credit to the consumer within the meaning of the first
subparagraph.
22.5.2008 EN Official Journal of the European Union L 133/73
2. The standard information shall specify in a clear, concise and
prominent way by means of a representative example:
(a) the borrowing rate, fixed or variable or both, together with
particulars of any charges included in the total cost of the
credit to the consumer;
(b) the total amount of credit;
(c) the annual percentage rate of charge; in the case of a credit
agreement of the kind referred to in Article 2(3), Member
States may decide that the annual percentage rate of charge
need not be provided;
(d) if applicable, the duration of the credit agreement;
(e) in the case of a credit in the form of deferred payment for a
specific good or service, the cash price and the amount of
any advance payment; and
(f) if applicable, the total amount payable by the consumer and
the amount of the instalments.
3. Where the conclusion of a contract regarding an ancillary
service relating to the credit agreement, in particular insurance, is
compulsory in order to obtain the credit or to obtain it on the
terms and conditions marketed, and the cost of that service
cannot be determined in advance, the obligation to enter into
that contract shall also be stated in a clear, concise and
prominent way, together with the annual percentage rate of
charge.
4. This Article shall be without prejudice to Directive 2005/
29/EC.
Article 5
Pre-contractual information
1. In good time before the consumer is bound by any credit
agreement or offer, the creditor and, where applicable, the credit
intermediary shall, 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,
provide the consumer with the information needed to
compare different offers in order to take an informed decision on
whether to conclude a credit agreement. Such information, on
paper or on another durable medium, shall be provided by
means of the Standard European Consumer Credit Information
form set out in Annex II. The creditor shall be deemed to have
fulfilled the information requirements in this paragraph and in
Article 3, paragraphs (1) and (2) of Directive 2002/65/EC if he
has supplied the Standard European Consumer Credit Informa-
tion.
The information in question shall specify:
(a) the type of credit;
(b) the identity and the geographical address of the creditor as
well as, if 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 the case of a credit in the form of deferred payment for a
specific good or service and linked credit agreements, that
good or service and its cash price;
(f) the borrowing rate, the conditions governing the application
of the borrowing 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 abovementioned information
on 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 assumption set out in point (b) of Part II of Annex I, 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
purposes 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,
together with 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;
(j) where applicable, the existence of costs payable by the
consumer to a notary on conclusion of the credit
agreement;
(k) the obligation, if any, to enter into an ancillary service
contract relating to the credit agreement, in particular an
insurance policy, 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;
(l) the interest rate applicable in the case of late payments and
the arrangements for its adjustment, and, where applicable,
any charges payable for default;
L 133/74 EN Official Journal of the European Union 22.5.2008
(m) a warning regarding the consequences of missing payments;
(n) where applicable, the sureties required;
(o) the existence or absence of a right of withdrawal;
(p) the right of early repayment, and, where applicable,
information concerning the creditor's right to compensation
and the way in which that compensation will be
determined in accordance with Article 16;
(q) the consumer's right to be informed immediately and free
of charge, pursuant to Article 9(2), of the result of a
database consultation carried out for the purposes of
assessing his creditworthiness;
(r) the consumer's right to be supplied, on request and free of
charge, 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; and
(s) if applicable, the period of time during which the creditor is
bound by the pre-contractual information.
Any additional information which the creditor may provide to
the consumer shall be given in a separate document which may
be annexed to the Standard European Consumer Credit
Information form.
2. However, in the case of voice telephony communications, as
referred to in Article 3(3) of Directive 2002/65/EC, the
description of the main characteristics of the financial service
to be provided pursuant to the second indent of Article 3(3)(b) of
that Directive shall include at least the items referred to in
points (c), (d), (e), (f) and (h) of paragraph (1) of this Article,
together with the annual percentage rate of charge illustrated by
means of a representative example and the total amount payable
by the consumer.
3. 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
paragraph 1, in particular in the case referred to in paragraph 2,
the creditor shall provide the consumer with the full precontractual
information using the Standard European Consumer
Credit Information form immediately after the conclusion of the
credit agreement.
4. Upon request, the consumer shall, in addition to receiving
the Standard European Consumer Credit Information, be
supplied free of charge 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.
5. 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
laid down in the credit agreement or in an ancillary agreement,
the pre-contractual information required under paragraph 1 shall
include a clear and concise statement that such credit agreements
do not provide for a guarantee of repayment of the total amount
of credit drawn down under the credit agreement, unless such a
guarantee is given.
6. Member States shall ensure that creditors and, where
applicable, credit intermediaries 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 to his financial situation, where
appropriate by explaining the pre-contractual information to be
provided in accordance with paragraph 1, the essential
characteristics of the products proposed and the specific effects
they may have on the consumer, including the consequences of
default in payment by the consumer. Member States may adapt
the manner by which and the extent to which such assistance is
given, as well as by whom it is given, to the particular
circumstances of the situation in which the credit agreement is
offered, the person to whom it is offered and the type of credit
offered.
Article 6
Pre-contractual information requirements for certain credit
agreements in the form of an overdraft facility and for
certain specific credit agreements
1. In good time before the consumer becomes bound by any
credit agreement or offer concerning a credit agreement as
referred to in Article 2(3), (5) or (6), the creditor and, where
applicable, the credit intermediary shall, 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, provide the consumer with the information needed to
compare different offers in order to take an informed decision on
whether to conclude a credit agreement.
The information in question shall specify:
(a) the type of credit;
(b) the identity and geographical address of the creditor as well
as, if applicable, the identity and geographical address of the
credit intermediary involved;
(c) the total amount of credit;
(d) the duration of the credit agreement;
(e) the borrowing rate; the conditions governing the application
of that 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;
(f) the annual percentage rate of charge, illustrated by means of
representative examples mentioning all the assumptions
used in order to calculate that rate;
(g) the conditions and procedure for terminating the credit
agreement;
22.5.2008 EN Official Journal of the European Union L 133/75
(h) in the case of credit agreements as referred to in Article
2(3), where applicable, an indication that the consumer
may be requested to repay the amount of credit in full at
any time;
(i) the interest rate applicable in the case of late payments and
the arrangements for its adjustment, and, where applicable,
any charges payable for default;
(j) the consumer's right to be informed immediately and free
of charge, pursuant to Article 9(2), of the result of a
database consultation carried out for the purposes of
assessing his creditworthiness;
(k) in the case of credit agreements as referred to in Article
2(3), information about the charges applicable from the
time such agreements are concluded and, if applicable, the
conditions under which those charges may be changed;
(l) if applicable, the period of time during which the creditor is
bound by the pre-contractual information.
Such information 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 European Consumer Credit
Information form set out in Annex III. The creditor shall be
deemed to have fulfilled the information requirements in this
paragraph and in Article 3(1) and (2) of Directive 2002/65/EC if
he has supplied the European Consumer Credit Information.
2. In the case of a credit agreement of the kind referred to in
Article 2(3), Member States may decide that the annual
percentage rate of charge need not be provided.
3. In the case of a credit agreement as referred to in Article 2(5)
and (6), the information provided to the consumer in accordance
with paragraph 1 of this Article shall also include:
(a) 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; and
(b) the right of early repayment, and, where applicable,
information concerning the creditor's right to compensation
and the way in which that compensation will be
determined.
However, if the credit agreement falls within the scope of
Article 2(3), only the provisions of paragraph 1 of this Article
shall apply.
4. However, in the case of voice telephony communications
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 referred to in points (c), (e), (f) and (h) of paragraph 1. In
addition, in credit agreements of the kind referred to in
paragraph 3, the description of the main characteristics shall
include a specification of the duration of the credit agreement.
5. Notwithstanding the exclusion provided for in Article
2(2)(e), the Member States shall apply at least the
requirements of the first sentence of paragraph 4 of this Article
to credit agreements in the form of an overdraft facility and
where the credit has to be repaid within one month.
6. Upon request, the consumer shall, in addition to receiving
the information referred to in paragraphs 1 to 4, be supplied free
of charge with a copy of the draft credit agreement containing
the contractual information provided for by Article 10 insofar as
that Article is applicable. 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.
7. 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
paragraphs 1 and 3, including in the cases referred to in
paragraph 4, the creditor shall immediately after the conclusion
of the credit agreement fulfil his obligations under paragraphs 1
and 3 by providing the contractual information pursuant to
Article 10 insofar as that Article is applicable.
Article 7
Exemptions from the pre-contractual information
requirements
Articles 5 and 6 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 in
those Articles.
Article 8
Obligation to assess the creditworthiness of the consumer
1. Member States shall ensure that, before the conclusion of the
credit agreement, the creditor assesses the consumer's creditworthiness
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. Member
States whose legislation requires creditors to assess the
creditworthiness of consumers on the basis of a consultation
of the relevant database may retain this requirement.
2. Member States shall ensure that, if the parties agree to
change the total amount of credit after the conclusion of the
credit agreement, the creditor updates the financial information
at his disposal concerning the consumer and assesses the
consumer's creditworthiness before any significant increase in
the total amount of credit.
L 133/76 EN Official Journal of the European Union 22.5.2008
CHAPTER III
DATABASE ACCESS
Article 9
Database access
1. Each Member State shall in the case of cross-border credit
ensure access for creditors from other Member States to
databases used in that Member State for assessing the
creditworthiness of consumers. The conditions for access shall
be non-discriminatory.
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. The information shall be provided unless the provision of
such information is prohibited by other Community legislation
or is contrary to objectives of public policy or public security.
4. This Article shall be without prejudice to the application of
Directive 95/46/EC of the European Parliament and of the
Council of 24 October 1995 on the protection of individuals
with regard to the processing of personal data and on the free
movement of such data (1).
CHAPTER IV
INFORMATION AND RIGHTS CONCERNING CREDIT
AGREEMENTS
Article 10
Information to be included in credit agreements
1. Credit agreements shall be drawn up on paper or on another
durable medium.
All the contracting parties shall receive a copy of the credit
agreement. This Article shall be without prejudice to any national
rules regarding the validity of the conclusion of credit
agreements which are in conformity with Community law.
2. The credit agreement shall specify in a clear and concise
manner:
(a) the type of credit;
(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 duration of the credit agreement;
(d) the total amount of credit and the conditions governing the
drawdown;
(e) in case of a credit in the form of deferred payment for a
specific good or service or in the case of linked credit
agreements, that good or service and its cash price;
(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 borrowing rates apply in
different circumstances, the abovementioned information
in respect of all the applicable rates;
(g) the annual percentage rate of charge and the total amount
payable by the consumer, calculated at the time the credit
agreement is concluded; all the assumptions used in order
to calculate that rate shall be mentioned;
(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
purposes of reimbursement;
(i) 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 indicate the payments owing
and the periods and conditions relating to the payment of
such amounts; the table shall 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; where the interest 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
will remain valid only until such time as the borrowing rate
or the additional costs are changed in accordance with the
credit agreement;
(j) if charges and interest are to be paid without capital
amortisation, a statement showing the periods and
conditions for the payment of the interest and of any
associated recurrent and non-recurrent charges;
(k) where applicable, the charges for maintaining one or several
accounts recording both payment transactions and drawdowns,
unless the opening of an account is optional,
together with the charges for using a means of payment for
both payment transactions and drawdowns, and any other
charges deriving from the credit agreement and the
conditions under which those charges may be changed;
(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;
22.5.2008 EN Official Journal of the European Union L 133/77
(1
) OJ L 281, 23.11.1995, p. 31. Directive as amended by Regulation
(EC) No 1882/2003 (OJ L 284, 31.10.2003, p. 1).
(m) a warning regarding the consequences of missing payments;
(n) where applicable, a statement, that notarial fees will be
payable;
(o) the sureties and insurance required, if any;
(p) the existence or absence of a right of withdrawal, the period
during which that right may be exercised and other
conditions governing the exercise thereof, including
information concerning the obligation of the consumer
to pay the capital drawn down and the interest in
accordance with Article 14(3)(b) and the amount of interest
payable per day;
(q) information concerning the rights resulting from Article 15
as well as the conditions for the exercise of those rights;
(r) the right of early repayment, the procedure for early
repayment, as well as, where applicable, information
concerning the creditor's right to compensation and the
way in which that compensation will be determined;
(s) the procedure to be followed in exercising the right of
termination of the credit agreement;
(t) whether or not there is an out-of-court complaint and
redress mechanism for the consumer and, if so, the
methods for having access to it;
(u) where applicable, other contractual terms and conditions;
(v) where applicable, the name and address of the competent
supervisory authority.
3. Where paragraph 2(i) applies, the creditor shall make
available to the consumer, free of charge and at any time
throughout the duration of the credit agreement, a statement of
account in the form of an amortisation table.
4. In the case of a credit agreement under which payments
made by the consumer do not give rise to an immediate
corresponding amortisation of the total amount of credit, but are
used to constitute capital during periods and under conditions
laid down in the credit agreement or in an ancillary agreement,
the information required under paragraph 2 shall include a clear
and concise statement that such credit agreements do not
provide for a guarantee of repayment of the total amount of
credit drawn down under the credit agreement, unless such a
guarantee is given.
5. In the case of credit agreements in the form of overdraft
facilities as referred to in Article 2(3), the following shall be
specified in a clear and concise manner:
(a) the type of credit;
(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 duration of the credit agreement;
(d) the total amount of the credit and the conditions governing
the drawdown;
(e) the borrowing rate, the conditions governing the application
of the borrowing 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 borrowing rates apply in
different circumstances, the abovementioned information
in respect of all the applicable rates;
(f) the annual percentage rate of charge and the total cost of
the credit to the consumer, calculated at the time the credit
agreement is concluded; all the assumptions used in order
to calculate that rate as referred to in Article 19(2) in
conjunction with Article 3(g) and (i) shall be mentioned;
Member States may decide that the annual percentage rate
of charge need not be provided;
(g) an indication that the consumer may be requested to repay
the amount of credit in full on demand at any time;
(h) conditions governing the exercise of the right of withdrawal
from the credit agreement; and
(i) information concerning the charges applicable from the
time such agreements are concluded and, if applicable, the
conditions under which those charges may be changed.
Article 11
Information concerning the borrowing rate
1. Where applicable, the consumer shall be informed of any
change in the borrowing rate, on paper or another durable
medium, before the change enters into force. The information
shall state the amount of the payments to be made after the entry
into force of the new borrowing rate and, if the number or
frequency of the payments changes, particulars thereof.
2. However, the parties may agree in the credit agreement that
the information referred to in paragraph 1 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 and the information concerning the new reference rate is
also kept available in the premises of the creditor.
Article 12
Obligations in connection with credit agreement in the
form of an overdraft facility
1. Where a credit agreement covers credit in the form of an
overdraft facility, the consumer shall be kept regularly informed
L 133/78 EN Official Journal of the European Union 22.5.2008
by means of a statement of account, on paper or on another
durable medium, containing the following particulars:
(a) the precise period to which the statement of account relates;
(b) the amounts and dates of drawdowns;
(c) the balance from the previous statement, and the date
thereof;
(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;
(h) where applicable, the minimum amount to be paid.
2. In addition, the consumer shall be informed on paper or
another durable medium of increases in the borrowing rate, or in
any charges payable, before the change in question enters into
force.
However, the parties may agree in the credit agreement that
information concerning changes in the borrowing rate is to be
given in the manner provided for in paragraph 1 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 and the information concerning the new
reference rate is also kept available in the premises of the
creditor.
Article 13
Open-end credit agreements
1. The consumer may effect standard termination of an openend
credit agreement free of charge at any time unless the parties
have agreed on a period of notice. Such a period may not exceed
one month.
If agreed in the credit agreement, the creditor may effect standard
termination of an open-end credit agreement by giving the
consumer at least two months' notice drawn up on paper or on
another durable medium.
2. If agreed in the credit agreement, the creditor may, for
objectively justified reasons, terminate the consumer's right to
draw down on an open-end credit agreement. The creditor shall
inform the consumer of the termination and the reasons for it on
paper or on another durable medium, where possible before the
termination and at the latest immediately thereafter, unless the
provision of such information is prohibited by other Community
legislation or is contrary to objectives of public policy or public
security.
Article 14
Right of withdrawal
1. The consumer shall have a period of 14 calendar days in
which to withdraw from the credit agreement without giving any
reason.
That period of withdrawal shall begin
(a) either 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 information in
accordance with Article 10, if that day is later than the
date referred to in point (a) of this subparagraph.
2. Where in the case of a linked credit agreement, as defined in
Article 3(n), national legislation at the time of the entry into
force of this Directive already provides that funds cannot be
made available to the consumer before the expiry of a specific
period, Member States may exceptionally provide that the period
referred to in paragraph 1 of this Article may be reduced to this
specific period at the explicit request of the consumer.
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 deadline referred to in paragraph 1, notify this to the
creditor in line with the information given by the creditor
pursuant to Article 10(2)(p) by means which can be proven
in accordance with national law. The deadline shall be
deemed to have been met if that notification, if it is on
paper or on another durable medium that is available and
accessible to the creditor, is dispatched before the deadline
expires; and
(b) pay to the creditor the capital and the interest accrued
thereon from the date the credit was drawn down until the
date the capital is repaid, without any undue delay and no
later than 30 calendar days after the despatch by him to the
creditor of notification of the withdrawal. The interest shall
be calculated on the basis of the agreed borrowing rate. The
creditor shall not be entitled to any other compensation
from the consumer in the event of withdrawal, except
compensation for any non-returnable charges paid by the
creditor to any public administrative body.
4. If 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 the third party and the creditor, the
consumer shall no longer be bound by the ancillary service
contract if the consumer exercises his right of withdrawal from
the credit agreement in accordance with this Article.
22.5.2008 EN Official Journal of the European Union L 133/79
5. If the consumer has a right of withdrawal under
paragraphs 1, 3 and 4, Articles 6 and 7 of Directive 2002/65/
EC and Article 5 of Council Directive 85/577/EEC of
20 December 1985 to protect the consumer in respect of
contracts negotiated away from business premises (1
) shall not
apply.
6. Member States may provide that paragraphs 1 to 4 of this
Article shall not apply to credit agreements which by law are
required to be concluded through the services of a notary,
provided that the notary confirms that the consumer is
guaranteed the rights provided for under Articles 5 and 10.
7. This Article shall be without prejudice to any rule of
national law establishing a period of time during which the
performance of the contract may not begin.
Article 15
Linked credit agreements
1. Where the consumer has exercised a right of withdrawal,
based on Community law, concerning a contract for the supply
of goods or services, he 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 are supplied only in part, or are
not in conformity with the contract for the supply thereof, the
consumer shall have the right to pursue remedies against the
creditor if the consumer has pursued his remedies against the
supplier but has failed to obtain the satisfaction to which he is
entitled according to the law or the contract for the supply of
goods or services. Member States shall determine to what extent
and under what conditions those remedies shall be exercisable.
3. This Article shall be without prejudice to any national rules
rendering the creditor jointly and severally liable in respect of
any claim which the consumer may have against the supplier
where the purchase of goods or services from the supplier has
been financed by a credit agreement.
Article 16
Early repayment
1. The consumer shall be entitled at any time to discharge fully
or partially his obligations under a credit agreement. In such
cases, he shall be entitled to a reduction in the total cost of the
credit, such reduction consisting of the interest and the costs for
the remaining duration of the contract.
2. In the event of early repayment of credit the creditor shall be
entitled to fair and objectively justified compensation for possible
costs directly linked to early repayment of credit provided that
the early repayment falls within a period for which the
borrowing rate is fixed.
Such compensation may not exceed 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. If the period does not exceed one year, the compensation
may not exceed 0,5 % of the amount of credit repaid early.
3. Compensation for early repayment shall not be claimed:
(a) if the repayment has been made under an insurance
contract intended to provide a credit repayment guarantee;
(b) in the case of overdraft facilities; or
(c) if the repayment falls within a period for which the
borrowing rate is not fixed.
4. Member States may provide that:
(a) such compensation may be claimed by the creditor only on
condition that the amount of the early repayment exceeds
the threshold defined by national law. That threshold shall
not exceed EUR 10 000 within any period of 12 months;
(b) the creditor may exceptionally claim higher compensation
if he can prove that the loss he suffered from early
repayment exceeds the amount determined under paragraph
2.
If the compensation claimed by the creditor exceeds the
loss actually suffered, the consumer may claim a corresponding
reduction.
In this case, the loss shall consist of the difference between
the initially agreed interest rate and the interest rate at
which the creditor can lend out the amount repaid early on
the market at the time of early repayment, and shall take
into account the impact of early repayment on administrative
costs.
5. Any compensation shall not exceed the amount of interest
the consumer would have paid during the period between the
early repayment and the agreed date of termination of the credit
agreement.
Article 17
Assignment of rights
1. In the event of assignment to a third party of the creditor's
rights under a credit agreement or the agreement itself, the
consumer shall be entitled to plead against the assignee any
L 133/80 EN Official Journal of the European Union 22.5.2008
(1
) OJ L 372, 31.12.1985, p. 31.
defence which was available to him against the original creditor,
including set-off where the latter is permitted in the Member
State concerned.
2. The consumer shall be informed of the assignment referred
to in paragraph 1 except where the original creditor, by
agreement with the assignee, continues to service the credit
vis-à-vis the consumer.
Article 18
Overrunning
1. In the case of an agreement to open a current account,
where there is a possibility that the consumer is allowed an
overrun, the agreement shall contain in addition the information
referred to in Article 6(1)(e). The creditor shall in any case
provide that information on paper or another durable medium
on a regular basis.
2. In the event of a significant overrunning exceeding a period
of one month, the creditor shall inform the consumer without
delay, on paper or on another durable medium,
(a) of the overrunning;
(b) of the amount involved;
(c) of the borrowing rate;
(d) of any penalties, charges or interest on arrears applicable.
3. This Article 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.
CHAPTER V
ANNUAL PERCENTAGE RATE OF CHARGE
Article 19
Calculation of the annual percentage rate of charge
1. The annual percentage rate of charge, equating, on an annual
basis, to the present value of all commitments (drawdowns,
repayments and charges), future or existing, agreed by the
creditor and the consumer, shall be calculated in accordance with
the mathematical formula set out in Part I of Annex I.
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 laid
down in the credit agreement and charges other than the
purchase price which, for purchases of goods or services, he is
obliged to pay whether the transaction is effected in cash or on
credit.
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 credit to the consumer unless the opening of the
account is optional and the costs of the account have been
clearly and separately shown 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 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.
4. In the case of credit agreements containing clauses 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, the annual percentage
rate of charge shall be calculated on the assumption that 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.
5. Where necessary, the additional assumptions set out in
Annex I may be used in calculating the annual percentage rate of
charge.
If the assumptions set out in this Article and in Part II of Annex I
do not suffice to calculate the annual percentage rate of charge in
a uniform manner or are not adapted any more to the
commercial situation at the market, the Commission may
determine the necessary additional assumptions for the calculation
of the annual percentage rate of charge, or modify existing
ones. These measures, designed to amend non-essential elements
of this Directive, shall be adopted in accordance with the
regulatory procedure with scrutiny referred to in Article 25(2).
CHAPTER VI
CREDITORS AND CREDIT INTERMEDIARIES
Article 20
Regulation of creditors
Member States shall ensure that creditors are supervised by a
body or authority independent from financial institutions, or
regulated. This shall be without prejudice to Directive 2006/
48/EC.
Article 21
Certain obligations of credit intermediaries vis-à-vis
consumers
Member States shall ensure that:
(a) a credit intermediary indicates 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;
22.5.2008 EN Official Journal of the European Union L 133/81
(b) the fee, if any, payable by the consumer to the credit
intermediary for his services is disclosed to the consumer,
and agreed between the consumer and the credit
intermediary on paper or another durable medium before
the conclusion of the credit agreement;
(c) the fee, if any, payable by the consumer to the credit
intermediary for his services is communicated to the
creditor by the credit intermediary, for the purpose of
calculation of the annual percentage rate of charge.
CHAPTER VII
IMPLEMENTING MEASURES
Article 22
Harmonisation and imperative nature of this Directive
1. Insofar as this Directive contains harmonised provisions,
Member States may not maintain or introduce in their national
law provisions diverging from those laid down in this Directive.
2. Member States shall ensure that consumers may not waive
the rights conferred on them by the provisions of national law
implementing or corresponding to this Directive.
3. Member States shall further ensure that the provisions they
adopt in implementation of this Directive 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 this Directive into credit agreements
the character or purpose of which would make it possible to
avoid its application.
4. Member States shall take the necessary measures to ensure
that consumers do not lose the protection granted by this
Directive by virtue of the choice of the law of a third country as
the law applicable to the credit agreement, if the credit agreement
has a close link with the territory of one or more Member States.
Article 23
Penalties
Member States shall lay down the rules on penalties applicable to
infringements of the national provisions adopted pursuant to
this Directive and shall take all measures necessary to ensure that
they are implemented. The penalties provided for must be
effective, proportionate and dissuasive.
Article 24
Out-of-court dispute resolution
1. Member States shall ensure that adequate and effective outof-court
dispute resolution procedures for the settlement of
consumer disputes concerning credit agreements are put in place,
using existing bodies where appropriate.
2. Member States shall encourage those bodies to cooperate in
order to also resolve cross-border disputes concerning credit
agreements.
Article 25
Committee procedure
1. The Commission shall be assisted by a Committee.
2. Where reference is made to this paragraph, Article 5a(1) to
(4) and Article 7 of Decision 1999/468/EC shall apply, having
regard to the provisions of Article 8 thereof.
Article 26
Information to be supplied to the Commission
Where a Member State makes use of any of the regulatory
choices referred to in Article 2(5) and 2(6), Article 4(1), Article
4(2)(c), Article 6(2), Article 10(1), Article 10(2)(g), Article
14(2) and Article 16(4), it shall inform the Commission
thereof as well as of any subsequent changes. The Commission
shall make that information public on a website or in another
easily accessible way. Member States shall take the appropriate
measures to diffuse that information amongst national creditors
and consumers.
Article 27
Transposition
1. Before 12 May 2010 Member States shall adopt and publish
the provisions necessary to comply with this Directive. They shall
forthwith inform the Commission thereof.
They shall apply those provisions from 12 May 2010.
When Member States adopt these provisions, they shall contain a
reference to this Directive or be accompanied by such reference
on the occasion of their official publication. The methods of
making such reference shall be laid down by Member States.
2. The Commission shall undertake, every five years and for
the first time 12 May 2013, a review of the thresholds laid down
in this Directive and its annexes and the percentages used to
calculate the compensation payable in the event of early
repayment, assessing them in the light of economic trends in
the Community and the situation of the market concerned. The
Commission shall also monitor the effect of the existence of the
regulatory choices referred to in Article 2(5) and 2(6), Article
4(1), Article 4(2)(c), Article 6(2), Article 10(1), Article
10(2)(g), Article 14(2) and Article 16(4) on the internal
market and consumers. The results shall be made known to the
European Parliament and the Council, accompanied where
appropriate by a proposal to modify the thresholds and
percentages as well as the abovementioned regulatory choices
accordingly.
L 133/82 EN Official Journal of the European Union 22.5.2008
Article 28
Conversion of amounts expressed in euro into national
currency
1. For the purposes of this Directive, those Member States who
convert the amounts expressed in euro into their national
currency shall initially use in the conversion the exchange rate
prevailing on the date of adoption of this Directive.
2. Member States may round off the amounts resulting from
the conversion provided that such rounding off does not exceed
EUR 10.
CHAPTER VIII
TRANSITIONAL AND FINAL PROVISIONS
Article 29
Repeal
Directive 87/102/EEC shall be repealed with effect from 12 May
2010.
Article 30
Transitional measures
1. This Directive shall not apply to credit agreements existing
on the date when the national implementing measures enter into
force.
2. However, Member States shall ensure that Articles 11, 12,
13 and 17, the second sentence of Article 18(1), and Article
18(2) are applied also to open-end credit agreements existing
on the date when the national implementing measures enter into
force.
Article 31
Entry into force
This Directive shall enter into force on the 20th day following its
publication in the Official Journal of the European Union.
Article 32
Addressees
This Directive is addressed to the Member States.
Done at Strasbourg, 23 April 2008.
For the European Parliament
The President
H.-G. PÖTTERING
For the Council
The President
J. LENARČIČ
22.5.2008 EN Official Journal of the European Union L 133/83
ANNEX I
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.:
∑
m
k = 1
Ck 1 þ Xð Þ− tk
= ∑
m0
l = 1
Dl 1 þ Xð Þ− Sl
where:
— X is the APR,
— m is the number of the last drawdown,
— k is the number of a drawdown, thus 1 ≤ k ≤ m,
— Ck is the amount of drawdown k,
— tk is the interval, expressed in years and fractions of a year, between the date of the first drawdown and the date
of each subsequent drawdown, thus t1 = 0,
— m’ is the number of the last repayment or payment of charges,
— l is the number of a repayment or payment of charges,
— Dl is the amount of a repayment or payment of charges,
— sl 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.:
S = ∑
n
k = 1
Ak 1 þ Xð Þ− tk
,
S being the present balance of flows. If the aim is to maintain the equivalence of flows, the value will be zero.
II. Additional assumptions for the calculation of the annual percentage rate of charge
(a) if a credit agreement gives the consumer freedom of drawdown, the total amount of credit shall be deemed to be
drawn down immediately and in full;
(b) if a credit agreement provides different ways of drawdown with different charges or borrowing rates, the total
amount of credit shall be deemed to be drawn down at the highest charge and borrowing rate applied to the
most common drawdown mechanism for this type of credit agreement;
L 133/84 EN Official Journal of the European Union 22.5.2008
(c) if a credit agreement gives the consumer freedom of drawdown in general but imposes, amongst the different
ways of drawdown, a limitation with regard to the amount and period of time, the amount of credit shall be
deemed to be drawn down on the earliest date provided for in the agreement and in accordance with those
drawdown limits;
(d) if there is no fixed timetable for repayment, it shall be assumed:
(i) that the credit is provided for a period of one year; and
(ii) that the credit will be repaid in 12 equal instalments and at monthly intervals;
(e) if there is a fixed timetable for repayment but the amount of such repayments is flexible, the amount of each
repayment shall be deemed to be the lowest for which the agreement provides;
(f) unless otherwise specified, where the credit agreement provides for more than one repayment date, the credit is
to be made available and the repayments made on the earliest date provided for in the agreement;
(g) if the ceiling applicable to the credit has not yet been agreed, that ceiling is assumed to be EUR 1 500;
(h) in the case of an overdraft facility the total amount of credit shall be deemed to be drawn down in full and for
the whole duration of the credit agreement. If the duration of the credit agreement is not known the annual
percentage rate of charge shall be calculated on the assumption that the duration of the credit is three months;
(i) if different interest rates and charges are offered for a limited period or amount, the interest rate and the charges
shall be deemed to be the highest rate for the whole duration of the credit agreement;
(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.
22.5.2008 EN Official Journal of the European Union L 133/85
ANNEX II
STANDARD EUROPEAN CONSUMER CREDIT INFORMATION
1. Identity and contact details of the creditor/credit intermediary
Creditor [Identity]
Address
Telephone number (*)
E-mail address (*)
Fax number (*)
Web address (*)
[Geographical address to be used by the consumer]
If applicable
Credit intermediary [Identity]
Address
Telephone number (*)
E-mail address (*)
Fax number (*)
Web address (*)
[Geographical address to be used by the consumer]
(*) This information is optional for the creditor.
Wherever ‘if applicable’ is indicated, the creditor must fill in the box if the information is relevant to the credit product
or delete the respective information or the entire row if the information is not relevant for the type of credit
considered.
Indications between square brackets provide explanations for the creditor and must be replaced with the
corresponding information.
2. Description of the main features of the credit product
The type of credit
The total amount of credit
This means the ceiling or the total sums made available under
the credit agreement.
The conditions governing the drawdown
This means how and when you will obtain the money.
The duration of the credit agreement
Instalments and, where appropriate, the order in which
instalments will be allocated
You will have to pay the following:
[The amount, number and frequency of payments to be
made by the consumer]
Interest and/or charges will be payable in the following
manner:
The total amount you will have to pay
This means the amount of borrowed capital plus interest and
possible costs related to your credit.
[Sum of total amount of credit and total cost of 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
L 133/86 EN Official Journal of the European Union 22.5.2008
If applicable
Sureties required [Kind of sureties]
This is a description of the security to be provided by you in
relation to the credit agreement.
If applicable
Repayments do not give rise to immediate amortisation of the
capital.
3. Costs of the credit
The borrowing rate or, if applicable, different borrowing
rates which apply to the credit agreement
[ %
— fixed or,
— variable (with the index or reference rate applicable
to the initial borrowing rate),
— periods],
Annual Percentage Rate of Charge (APR)
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.
[ % A representative example mentioning all the
assumptions used for calculating the rate to be set out
here]
Is it compulsory, in order to obtain the credit or to
obtain it on the terms and conditions marketed, to take
out
— an insurance policy securing the credit, or Yes/no [if yes, specify the kind of insurance]
— another ancillary service contract, Yes/no [if yes, specify the kind of ancillary service]
If the costs of these services are not known by the creditor they
are not included in the APR.
Related costs
If applicable
Maintaining one or more accounts is required for
recording both payment transactions and drawdowns
If applicable
Amount of costs for using a specific means of payment
(e.g. a credit card)
If applicable
Any other costs deriving from the credit agreement
If applicable
Conditions under which the abovementioned costs
related to the credit agreement can be changed
If applicable
Obligation to pay notarial fees
Costs in the case of late payments
Missing payments could have severe consequences for you (e.g.
forced sale) and make obtaining credit more difficult.
You will be charged […… (applicable interest rate and
arrangements for its adjustment and, where applicable,
default charges)] for missing payments.
4. Other important legal aspects
Right of withdrawal Yes/no
You have the right to withdraw from the credit agreement
within a period of 14 calendar days.
22.5.2008 EN Official Journal of the European Union L 133/87
Early repayment
You have the right to repay the credit early at any time in full or
partially.
If applicable
The creditor is entitled to compensation in the case of
early repayment
[Determination of the compensation (calculation
method) in accordance with the provisions implementing
Article 16 of Directive 2008/48/EC]
Consultation of a database
The creditor must inform you immediately and without charge
of the result of a consultation of a database, if a credit
application is rejected on the basis of such a consultation. This
does not apply if the provision of such information is prohibited
by European Community law or is contrary to objectives of
public policy or public security.
Right to a draft credit agreement
You have the right, upon request, to obtain a copy of the draft
credit agreement free of charge. This provision does not apply if
the creditor is at the time of the request unwilling to proceed to
the conclusion of the credit agreement with you.
If applicable
The period of time during which the creditor is bound by
the pre-contractual information
This information is valid from … until …
If applicable
5. Additional information in the case of distance marketing of financial services
(a) concerning the creditor
If applicable
Representative of the creditor in your Member State of
residence
[Identity]
Address [Geographical address to be used by the 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
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 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
L 133/88 EN Official Journal of the European Union 22.5.2008
If applicable
Clause stipulating the governing law applicable to the
credit agreement and/or the competent court
[Relevant clause to be set out here]
If applicable
Language regime Information and contractual terms will be supplied in
[specific language]. With your consent, we intend to
communicate in [specific language/languages] during the
duration of the credit agreement.
(c) concerning redress
Existence of and access to out-of-court complaint and
redress mechanism
[Whether or not there is an out-of-court 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.
22.5.2008 EN Official Journal of the European Union L 133/89
ANNEX III
EUROPEAN CONSUMER CREDIT INFORMATION FOR
(1) overdrafts
(2) consumer credit offered by certain credit organisations (Article 2(5) of Directive 2008/48/EC)
(3) debt conversion
1. Identity and contact details of the creditor/credit intermediary
Creditor [Identity]
Address
Telephone number (*)
E-mail address (*)
Fax number (*)
Web address (*)
[Geographical address to be used by the consumer]
If applicable
Credit intermediary [Identity]
Address
Telephone number (*)
E-mail address (*)
Fax number (*)
Web address (*)
[Geographical address to be used by the consumer]
(*) This information is optional for the creditor.
Wherever ‘if applicable’ is indicated, the creditor must fill in the box if the information is relevant to the credit product
or delete the respective information or the entire row if the information is not relevant for the type of credit
considered.
Indications between square brackets provide explanations for the creditor and must be replaced with the
corresponding information.
2. Description of the main features of the credit product
The type of credit
The total amount of credit
This means the ceiling or the total sums made available under
the credit agreement.
The duration of the credit agreement
If applicable
You may be requested to repay the amount of credit in
full on demand at any time.
3. Costs of the credit
The borrowing rate or, if applicable, different borrowing
rates which apply to the credit agreement
[ %
— fixed or,
— variable (with the index or reference rate applicable
to the initial borrowing rate)],
L 133/90 EN Official Journal of the European Union 22.5.2008
If applicable
The annual percentage rate of charge (APR) (*)
This is the total cost of credit expressed as an annual percentage
of the total amount of credit. The APR is there to help you
compare different offers.
[ % A representative example mentioning all the
assumptions used for calculating the rate to be set out
here]
If applicable
Costs
If applicable
The conditions under which those costs may be changed
[The costs applicable from the time the credit agreement
is concluded]
Costs in the case of late payments You will be charged […… (applicable interest rate and
arrangements for its adjustment and, where applicable,
default charges)] for missing payments.
(*) Not applicable to European Consumer Credit Information for overdrafts in those Member States which decide on the basis of
Article 6(2) of Directive 2008/48/EC that the APR need not be provided for overdrafts.
4. Other important legal aspects
Termination of the credit agreement [The conditions and procedure for terminating the credit
agreement]
Consultation of a database
The creditor must inform you immediately and without charge
of the result of a consultation of a database if a credit
application is rejected on the basis of such a consultation. This
does not apply if the provision of such information is prohibited
by European Community law or is contrary to objectives of
public policy or public security.
If applicable
The period of time during which the creditor is bound by
the pre-contractual information
This information is valid from … until…
If applicable
5. Additional information to be given where the pre-contractual information is provided by certain credit
organisations (Article 2(5) of Directive 2008/48/EC or relates to a consumer credit for debt conversion
Instalments and, where appropriate, the order in which
instalments will be allocated
You will have to pay the following:
[Representative example of an instalment table including
the amount, number and frequency of payments to be
made by the consumer]
The total amount you will have to pay
Early repayment
You have the right to repay the credit early at any time in full or
partially.
If applicable
The creditor is entitled to compensation in the case of
early repayment
[Determination of the compensation (calculation
method) in accordance with the provisions implementing
Article 16 of Directive 2008/48/EC]
If applicable
22.5.2008 EN Official Journal of the European Union L 133/91
6. Additional information to be given in the case of distance marketing of financial services
(a) concerning the creditor
If applicable
Representative of the creditor in your Member State of
residence
[Identity]
Address
Telephone number (*)
E-mail address (*)
Fax number (*)
Web address (*)
[Geographical address to be used by the consumer]
If applicable
Registration [The trade register in which the creditor is entered and
his registration number or an equivalent means of
identification in that register]
If applicable
The supervisory authority
(b) concerning the credit agreement
Right of withdrawal Yes/no
You have the right to withdraw from the credit agreement
within a period of 14 calendar days.
If applicable
Exercise of the right of withdrawal
[Practical instructions for exercising the right of withdrawal
indicating, inter alia, the address to which
notification of exercise of the right 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
Clause stipulating the law applicable to the credit
agreement and/or the competent court
[Relevant clause to be set out here]
If applicable
Language regime Information and contractual terms will be supplied in
[specific language]. With your consent, we intend to
communicate in [specific language/languages] during the
duration of the credit agreement.
(c) concerning redress
Existence of and access to out-of-court complaint and
redress mechanism
[Whether or not there is an out-of-court 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.
L 133/92 EN Official Journal of the European Union 22.5.2008