Credit Agreements For Consumers

4. Member States shall take the necessary measures to ensure that consumers do not lose the protection afforded by this Directive by choosing the law of a third country as the law applicable to the credit agreement, where the credit agreement was closely linked to the territory of one or more Member States. The credit agreement must also contain similar information in a format similar to that of the pre-contractual phase. Regulation (EU) 2016/1011 amends Directive 2008/48/EC and requires the creditor to indicate the name of that repository and its administrator during the pre-contractual phase of the consumer credit agreement, where the credit agreement refers to a repository, the name of that repository and its administrator, and the potential impact on the consumer. The consumer should have the right to fulfil his obligations before the date agreed in the credit agreement. In the case of early repayment, in whole or in part, the creditor should be entitled to reimbursement of the costs directly related to the early repayment, taking into account any savings of the creditor. However, in determining the method of calculating compensation, it is important to follow several principles. The calculation of the creditor`s compensation should be transparent and comprehensible to consumers from the pre-contractual stage and, in any event, during the performance of the credit agreement. In addition, the calculation method should be easy for creditors to apply and prudential supervision of compensation by competent authorities should be facilitated.

Therefore, and taking into account that consumer credit is not financed by long-term financing mechanisms due to its duration and volume, it is appropriate to set the ceiling for compensation in the form of a lump sum. This approach reflects the special nature of credit for consumers and should not compromise the approach that may differ from other products financed by long-term financing mechanisms, such as. B fixed income mortgages. the right to early repayment and, where applicable, information on the creditor`s right to compensation and how such compensation is determined in accordance with Article 16; the consumer`s right to obtain, on request and free of charge, a copy of the draft credit agreement. This provision shall not apply where the creditor is not prepared, at the time of the application, to continue the conclusion of the credit agreement with the consumer; and aims to consult credit providers, credit intermediaries and credit registries; industry associations, companies that manufacture and sell consumer goods (goods and services), distributors and importers, the repair sector; major online platforms and other online intermediaries….


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