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Document 02008L0048-20190726
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
Consolidated text: 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
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
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02008L0048 — EN — 26.07.2019 — 004.001
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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 (OJ L 133 22.5.2008, p. 66) |
Amended by:
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Official Journal |
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No |
page |
date |
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L 296 |
35 |
15.11.2011 |
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DIRECTIVE 2014/17/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 4 February 2014 |
L 60 |
34 |
28.2.2014 |
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REGULATION (EU) 2016/1011 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 8 June 2016 |
L 171 |
1 |
29.6.2016 |
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REGULATION (EU) 2019/1243 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 20 June 2019 |
L 198 |
241 |
25.7.2019 |
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Corrected by:
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
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
This Directive shall not apply to the following:
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;
credit agreements the purpose of which is to acquire or retain property rights in land or in an existing or projected building;
credit agreements involving a total amount of credit less than EUR 200 or more than EUR 75 000 ;
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;
credit agreements in the form of an overdraft facility and where the credit has to be repaid within one month;
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;
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;
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;
credit agreements which are the outcome of a settlement reached in court or before another statutory authority;
credit agreements which relate to the deferred payment, free of charge, of an existing debt;
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;
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.
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:
is established for the mutual benefit of its members;
does not make profits for any other person than its members;
fulfils a social purpose required by domestic legislation;
receives and manages the savings of, and provides sources of credit to, its members only; and
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.
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:
such arrangements would be likely to avert the possibility of legal proceedings concerning such default; and
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:
‘consumer’ means a natural person who, in transactions covered by this Directive, is acting for purposes which are outside his trade, business or profession;
‘creditor’ means a natural or legal person who grants or promises to grant credit in the course of his trade, business or profession;
‘credit agreement’ means an agreement whereby a creditor grants or promises to grant to a consumer credit in the form of a deferred payment, loan or other similar financial accommodation, except for agreements for the provision on a continuing basis of services or for the supply of goods of the same kind, where the consumer pays for such services or goods for the duration of their provision by means of instalments;
‘overdraft facility’ means an explicit credit agreement whereby a creditor makes available to a consumer funds which exceed the current balance in the consumer's current account;
‘overrunning’ means a tacitly accepted overdraft whereby a creditor makes available to a consumer funds which exceed the current balance in the consumer's current account or the agreed overdraft facility;
‘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:
presents or offers credit agreements to consumers;
assists consumers by undertaking preparatory work in respect of credit agreements other than as referred to in (i); or
concludes credit agreements with consumers on behalf of the creditor;
‘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;
‘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;
‘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);
‘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;
‘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;
‘total amount of credit’ means the ceiling or the total sums made available under a credit agreement;
‘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;
‘linked credit agreement’ means a credit agreement where
the credit in question serves exclusively to finance an agreement for the supply of specific goods or the provision of a specific service, and
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
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.
The standard information shall specify in a clear, concise and prominent way by means of a representative example:
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;
the total amount of credit;
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;
if applicable, the duration of the credit agreement;
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
if applicable, the total amount payable by the consumer and the amount of the instalments.
Article 5
Pre-contractual information
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 Information.
The information in question shall specify:
the type of credit;
the identity and the geographical address of the creditor as well as, if applicable, the identity and geographical address of the credit intermediary involved;
the total amount of credit and the conditions governing the drawdown;
the duration of the credit agreement;
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;
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;
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;
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;
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;
where applicable, the existence of costs payable by the consumer to a notary on conclusion of the credit agreement;
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;
the interest rate applicable in the case of late payments and the arrangements for its adjustment, and, where applicable, any charges payable for default;
a warning regarding the consequences of missing payments;
where applicable, the sureties required;
the existence or absence of a right of withdrawal;
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;
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;
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
if applicable, the period of time during which the creditor is bound by the pre-contractual information.
Where the credit agreement references a benchmark as defined in point 3 of Article 3(1) of Regulation (EU) 2016/1011 of the European Parliament and of the Council ( 2 ), the name of the benchmark and of its administrator and the potential implications on the consumer shall be provided by the creditor, or where applicable, by the credit intermediary, to the consumer in a separate document, which may be annexed to the Standard European Consumer Credit Information form.
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.
Article 6
Pre-contractual information requirements for certain credit agreements in the form of an overdraft facility and for certain specific credit agreements
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:
the type of credit;
the identity and geographical address of the creditor as well as, if applicable, the identity and geographical address of the credit intermediary involved;
the total amount of credit;
the duration of the credit agreement;
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;
the annual percentage rate of charge, illustrated by means of representative examples mentioning all the assumptions used in order to calculate that rate;
the conditions and procedure for terminating the credit agreement;
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;
the interest rate applicable in the case of late payments and the arrangements for its adjustment, and, where applicable, any charges payable for default;
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;
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;
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.
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:
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
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.
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
CHAPTER III
DATABASE ACCESS
Article 9
Database access
CHAPTER IV
INFORMATION AND RIGHTS CONCERNING CREDIT AGREEMENTS
Article 10
Information to be included in credit agreements
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.
The credit agreement shall specify in a clear and concise manner:
the type of credit;
the identities and geographical addresses of the contracting parties as well as, if applicable, the identity and geographical address of the credit intermediary involved;
the duration of the credit agreement;
the total amount of credit and the conditions governing the drawdown;
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;
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;
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;
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;
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;
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;
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;
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;
a warning regarding the consequences of missing payments;
where applicable, a statement, that notarial fees will be payable;
the sureties and insurance required, if any;
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;
information concerning the rights resulting from Article 15 as well as the conditions for the exercise of those rights;
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;
the procedure to be followed in exercising the right of termination of the credit agreement;
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;
where applicable, other contractual terms and conditions;
where applicable, the name and address of the competent supervisory authority.
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:
the type of credit;
the identities and geographical addresses of the contracting parties as well as, if applicable, the identity and geographical address of the credit intermediary involved;
the duration of the credit agreement;
the total amount of the credit and the conditions governing the drawdown;
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;
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;
an indication that the consumer may be requested to repay the amount of credit in full on demand at any time;
conditions governing the exercise of the right of withdrawal from the credit agreement; and
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
Article 12
Obligations in connection with credit agreement in the form of an overdraft facility
Where a credit agreement covers credit in the form of an overdraft facility, the consumer shall be kept regularly informed by means of a statement of account, on paper or on another durable medium, containing the following particulars:
the precise period to which the statement of account relates;
the amounts and dates of drawdowns;
the balance from the previous statement, and the date thereof;
the new balance;
the dates and amounts of payments made by the consumer;
the borrowing rate applied;
any charges that have been applied;
where applicable, the minimum amount to be paid.
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
The consumer may effect standard termination of an open-end 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.
Article 14
Right of withdrawal
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
either from the day of the conclusion of the credit agreement, or
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.
If the consumer exercises his right of withdrawal, he shall:
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
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.
Article 15
Linked credit agreements
Article 16
Early repayment
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.
Compensation for early repayment shall not be claimed:
if the repayment has been made under an insurance contract intended to provide a credit repayment guarantee;
in the case of overdraft facilities; or
if the repayment falls within a period for which the borrowing rate is not fixed.
Member States may provide that:
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;
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.
Article 17
Assignment of rights
Article 18
Overrunning
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,
of the overrunning;
of the amount involved;
of the borrowing rate;
of any penalties, charges or interest on arrears applicable.
CHAPTER V
ANNUAL PERCENTAGE RATE OF CHARGE
Article 19
Calculation of the annual percentage rate of charge
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.
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 no longer adapted to the commercial situations in the market, the Commission is empowered to adopt delegated acts in accordance with Article 24a amending this Article and Part II of Annex I to add the necessary additional assumptions for the calculation of the annual percentage rate of charge or to modify the existing ones.
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 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;
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;
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
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
Article 24a
Exercise of the delegation
▼M4 —————
Article 26
Information to be supplied to the Commission
►C2 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(5)(f), 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
Before 11 June 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 ►C1 from 11 June 2010 ◄ .
By 1 July 2018 Member States shall adopt and publish the provisions necessary to comply with the third subparagraph of Article 5(1) and shall communicate them to the Commission. They shall apply those provisions from 1 July 2018.
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.
Article 28
Conversion of amounts expressed in euro into national currency
CHAPTER VIII
TRANSITIONAL AND FINAL PROVISIONS
Article 30
Transitional measures
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.
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.:
where:
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— X |
is the APR, |
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— m |
is the number of the last drawdown, |
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— k |
is the number of a drawdown, thus 1 ≤ k ≤ m, |
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— Ck |
is the amount of drawdown k, |
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— 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, |
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— m’ |
is the number of the last repayment or payment of charges, |
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— l |
is the number of a repayment or payment of charges, |
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— Dl |
is the amount of a repayment or payment of charges, |
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— 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:
The amounts paid by both parties at different times shall not necessarily be equal and shall not necessarily be paid at equal intervals.
The starting date shall be that of the first drawdown.
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.
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.
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 being the present balance of flows. If the aim is to maintain the equivalence of flows, the value will be zero.
II. The additional assumptions for the calculation of the annual percentage rate of charge shall be as follows:
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.
If a credit agreement gives the consumer freedom of drawdown in general but imposes, amongst the different ways of drawdown, a limitation with regard to the amount of credit and period of time, the amount of credit shall be deemed to be drawn down on the earliest date provided for in the credit agreement and in accordance with those drawdown limits.
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.
In the case of an overdraft facility, the total amount of credit shall be deemed to be drawn down in full and for the whole duration of the credit agreement. If the duration of the overdraft facility is not known, the annual percentage rate of charge shall be calculated on the assumption that the duration of the credit is 3 months.
In the case of an open-end credit agreement, other than an overdraft facility, it shall be assumed that:
the credit is provided for a period of 1 year starting from the date of the initial drawdown, and that the final payment made by the consumer clears the balance of capital, interest and other charges, if any;
the capital is repaid by the consumer in equal monthly payments, commencing 1 month after the date of the initial drawdown. However, in cases where the capital must be repaid only in full, in a single payment, within each payment period, successive drawdowns and repayments of the entire capital by the consumer shall be assumed to occur over the period of 1 year. Interest and other charges shall be applied in accordance with those drawdowns and repayments of capital and as provided for in the credit agreement.
For the purposes of this point, an open-end credit agreement is a credit agreement without fixed duration and includes credits which must be repaid in full within or after a period but, once repaid, become available to be drawn down again.
In the case of credit agreements other than overdrafts and open-end credits as referred to in the assumptions set out in points (d) and (e):
if the date or amount of a repayment of capital to be made by the consumer cannot be ascertained, it shall be assumed that the repayment is made at the earliest date provided for in the credit agreement and is for the lowest amount for which the credit agreement provides;
if the date of conclusion of the credit agreement is not known, the date of the initial drawdown shall be assumed to be the date which results in the shortest interval between that date and the date of the first payment to be made by the consumer.
Where the date or amount of a payment to be made by the consumer cannot be ascertained on the basis of the credit agreement or the assumptions set out in points (d), (e) or (f), it shall be assumed that the payment is made in accordance with the dates and conditions required by the creditor and, when these are unknown:
interest charges are paid together with the repayments of capital;
a non-interest charge expressed as a single sum is paid at the date of the conclusion of the credit agreement;
non-interest charges expressed as several payments are paid at regular intervals, commencing with the date of the first repayment of capital, and if the amount of such payments is not known they shall be assumed to be equal amounts;
the final payment clears the balance of capital, interest and other charges, if any.
If the ceiling applicable to the credit has not yet been agreed, that ceiling is assumed to be EUR 1 500 .
If different borrowing rates and charges are offered for a limited period or amount, the borrowing rate and the charges shall be deemed to be the highest rate for the whole duration of the credit agreement.
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.
ANNEX II
STANDARD EUROPEAN CONSUMER CREDIT INFORMATION
1. Identity and contact details of the creditor/credit intermediary
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Creditor |
[Identity] |
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Address Telephone number (*1) E-mail address (*1) Fax number (*1) Web address (*1) |
[Geographical address to be used by the consumer] |
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If applicable |
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Credit intermediary |
[Identity] |
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Address Telephone number (*1) E-mail address (*1) Fax number (*1) Web address (*1) |
[Geographical address to be used by the consumer] |
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(*1)
This information is optional for the creditor. |
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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
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The type of credit |
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The total amount of credit This means the ceiling or the total sums made available under the credit agreement. |
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The conditions governing the drawdown This means how and when you will obtain the money. |
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The duration of the credit agreement |
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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: |
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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] |
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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 |
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If applicable |
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Sureties required |
[Kind of sureties] |
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This is a description of the security to be provided by you in relation to the credit agreement. |
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If applicable Repayments do not give rise to immediate amortisation of the capital. |
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3. Costs of the credit
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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] |
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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] |
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Is it compulsory, in order to obtain the credit or to obtain it on the terms and conditions marketed, to take out |
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— an insurance policy securing the credit, or |
Yes/no [if yes, specify the kind of insurance] |
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— another ancillary service contract? |
Yes/no [if yes, specify the kind of ancillary service] |
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If the costs of these services are not known by the creditor they are not included in the APR. |
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Related costs |
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If applicable Maintaining one or more accounts is required for recording both payment transactions and drawdowns |
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If applicable Amount of costs for using a specific means of payment (e.g. a credit card) |
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If applicable Any other costs deriving from the credit agreement |
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If applicable Conditions under which the abovementioned costs related to the credit agreement can be changed |
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If applicable Obligation to pay notarial fees |
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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 late payments. |
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Missing payments could have severe consequences for you (e.g. forced sale) and make obtaining credit more difficult. |
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4. Other important legal aspects
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Right of withdrawal |
Yes/no |
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You have the right to withdraw from the credit agreement within a period of 14 calendar days. |
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Early repayment You have the right to repay the credit early at any time in full or partially. |
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If applicable |
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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] |
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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. |
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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. |
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If applicable |
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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
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(a) concerning the creditor |
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If applicable |
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Representative of the creditor in your Member State of residence |
[Identity] |
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Address |
[Geographical address to be used by the consumer] |
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Telephone number (*1) E-mail address (*1) Fax number (*1) Web address (*1) |
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If applicable |
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Registration |
[The trade register in which the creditor is entered and his registration number or an equivalent means of identification in that register] |
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If applicable The supervisory authority |
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(b) concerning the credit agreement |
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If applicable |
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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] |
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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 |
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If applicable |
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Clause stipulating the governing law applicable to the credit agreement and/or the competent court |
[Relevant clause to be set out here] |
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If applicable |
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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. |
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(c) concerning redress |
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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] |
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(*1)
This information is optional for the creditor. |
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ANNEX III
EUROPEAN CONSUMER CREDIT INFORMATION FOR
overdraftsconsumer credit offered by certain credit organisations (Article 2(5) of Directive 2008/48/EC)debt conversion1. Identity and contact details of the creditor/credit intermediary
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Creditor |
[Identity] |
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Address Telephone number (*1) E-mail address (*1) Fax number (*1) Web address (*1) |
[Geographical address to be used by the consumer] |
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If applicable |
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Credit intermediary |
[Identity] |
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Address Telephone number (*1) E-mail address (*1) Fax number (*1) Web address (*1) |
[Geographical address to be used by the consumer] |
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(*1)
This information is optional for the creditor. |
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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
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The type of credit |
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The total amount of credit This means the ceiling or the total sums made available under the credit agreement. |
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The duration of the credit agreement |
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If applicable You may be requested to repay the amount of credit in full on demand at any time. |
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3. Costs of the credit
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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)], |
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If applicable |
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The annual percentage rate of charge (APR) (*1) 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] |
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If applicable |
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Costs If applicable The conditions under which those costs may be changed |
[The costs applicable from the time the credit agreement is concluded] |
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Costs in the case of late payments |
►C2 You will be charged […… (applicable interest rate and arrangements for its adjustment and, where applicable, default charges)] for late payments. ◄ |
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(*1)
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. |
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4. Other important legal aspects
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Termination of the credit agreement |
[The conditions and procedure for terminating the credit agreement] |
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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. |
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If applicable |
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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
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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] |
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The total amount you will have to pay |
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Early repayment You have the right to repay the credit early at any time in full or partially. If applicable |
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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
6. Additional information to be given in the case of distance marketing of financial services
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(a) concerning the creditor |
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If applicable |
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Representative of the creditor in your Member State of residence |
[Identity] |
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Address Telephone number (*1) E-mail address (*1) Fax number (*1) Web address (*1) |
[Geographical address to be used by the consumer] |
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If applicable |
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Registration |
[The trade register in which the creditor is entered and his registration number or an equivalent means of identification in that register] |
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If applicable The supervisory authority |
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(b) concerning the credit agreement |
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Right of withdrawal |
Yes/no |
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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] |
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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 |
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If applicable |
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Clause stipulating the law applicable to the credit agreement and/or the competent court |
[Relevant clause to be set out here] |
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If applicable |
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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. |
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(c) concerning redress |
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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] |
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(*1)
This information is optional for the creditor. |
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( 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).
( 2 ) Regulation (EU) 2016/1011, of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1).
( 3 ) 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).
( 4 ) OJ L 372, 31.12.1985, p. 31.
( 5 ) OJ L 123, 12.5.2016, p. 1.
