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L.S. 376.09 Regolamenti dwar Financial Institutions Act (Consumer Credit) Għadhom mhux fis-seħħ

FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) [ S.L. 376.09] 1 SUBSIDIARY LEGISLATION 376.09 FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) REGULATIONS * LEGAL NOTICE 266 of 2025. 1.

(1)The title of these regulations is the Financial Institutions Act (Consumer Credit) Regulations. Citation and scope.
(2)The scope of these regulations is to apply the relevant provisions of Directive 2008/48/EC of the European Parliament and of the Council of 23 April 2008 on credit agreements for consumers and repealing Council Directive 87/102/EEC, in so far as applicable to creditors as herein defined, and consequently these regulations shall be interpreted and applied accordingly and read in conjunction with the Consumer Credit Regulations, where applicable, as specified in these regulations.           S.L. 378.12.
(3)These regulations establish a common framework for certain aspects of laws, regulations and administrative provisions concerning credit agreements covering credit for consumers falling within the scope of these regulations in accordance with regulation 4.
(4)These regulations shall come into force on such a date or dates as the Minister responsible for finance may by notice in the Gazette establish and different dates nay be so established for different provisions and, or purposes of these regulations. 2. requires:
(1)In these regulations, unless the context otherwise "Act" means the Financial Institutions Act; Interpretation. Cap. 376. ''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; ''Authority'' shall have the same meaning as assigned to it in the Malta Financial Services Authority Act; "consumer" means a natural person who, in transactions covered by these regulations, is acting either in his own personal capacity or for the purposes of carrying out his trade, business or profession; ''Consumer Credit Directive'' means Directive 2008/48/ EC of the European Parliament and of the Council of 23 April 2008 on credit agreements for consumers and repealing Council *Not yet in force.  Cap. 330. 2 [ S.L. 376.09] FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) Directive 87/102/EEC, as may be amended from time to time; "creditor" means a company that holds a licence issued by the Authority in accordance with article 5 of the Act, by virtue of which it is licensed to grant, or promise to grant credit; "credit agreement" means an agreement whereby a creditor grants or promises to grant to a consumer, credit in the form of a deferred payment, loan or other similar financial accommodation, except for agreements for the provision on a continuing basis of services or for the supply of goods of the same kind, where the consumer pays for such services or goods for the duration of their provision by means of instalments; "credit intermediary" means a natural or legal person who is not acting as a creditor and who, in the course of his trade, business or profession, for a fee, which may take a pecuniary form or any other agreed form of financial consideration: (
  1. a)consumers; presents or offers credit agreements to (
  2. b)assists consumers by undertaking preparatory work in respect of credit agreements other than as referred to in paragraph (a); or (
  3. c)concludes credit agreements consumers on behalf of the creditor; with ''European creditor'' means a payment institution in accordance with the Payment Services Directive, or an electronic money institution in accordance with the Electronic Money Directive authorised by its European regulatory authority in a Member State to grant, or promise to grant credit, and which has exercised its right to establish a branch or to provide services in Malta; ''Financial Institutions Rules'' shall have the same meaning as assigned to it in the Act;  Cap. 330. "Financial Services Tribunal" means the tribunal established under article 21 of the Malta Financial Services Authority Act; "Member State" shall have the same meaning as assigned to it in the Act; "overdraft facility" means an explicit credit agreement whereby a creditor makes available to a consumer funds which exceed the current balance in the consumer’s current account; FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) [ S.L. 376.09] "overrunning" means a tacitly accepted overdraft whereby a creditor makes available to a consumer funds which exceed the current balance in the consumer’s current account or the agreed overdraft facility; "total amount of credit" means the ceiling or the total sums made available under a credit agreement;
(2)Words and expressions used in these regulations which are also used in the Consumer Credit Directive and, or the Act, but which are not defined herein, shall have the same meaning as assigned to them in the said Directive and the Act. 3.
(1)The Authority established by article 3 of the Malta Financial Services Authority Act shall be the designated competent authority in Malta responsible for the implementation of the Consumer Credit Directive, insofar as applicable to financial institutions duly licensed by the same. Competent authority. Cap. 330.
(2)The Authority shall, with respect to credit agreements marketed, distributed or sold in or from Malta, monitor the compliance of creditors and credit intermediaries with the provisions of these regulations and any Financial Institutions Rules made thereunder.
(3)For the better implementation of the Consumer Credit Directive, the Authority may exercise any of the powers assigned to it under the Act.
(4)For the better carrying out of these regulations, the Authority may, from time to time, issue and publish Financial Institutions Rules, in accordance with article 13 of the Act, and such rules shall be binding on creditors and other persons as may be specified therein. 4.
(1)These regulations shall apply to credit agreements covering credit for consumers insofar as the said credit agreements are granted or promised to be granted by creditors as defined in regulation 2.
(2)Specific provisions shall apply limitedly to the following credit agreements, as follows: (a) only regulations 1, 2, 3, 5, 6
(3), 6
(4), 7
(1), 7
(2)(a) to (d), 10 to 13, 14, 15
(4), 15
(5), 21, 24 and 26 to 28 shall apply to an overdraft facility and where the credit has to be repaid on demand or within three
(3)months; or (
  1. b)only regulations 1 to 5, 25, 27 and 28 shall apply to an overrunning; (
  2. c)only regulations 1 to 4, 6
(3), 6
(4), 7, 14 the application of regulation 9(
  1. a)to (f), (h), (i), and (
  2. m)in so far as Applicability. 3 4 [ S.L. 376.09] FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) the information to be included in credit agreements, regulations 10, 11, 13, 14
(3), 15
(1)limitedly to the requirement of a credit agreement to be drawn up in writing or on a durable medium, regulations 15
(1)(b), 15
(2), 16, 19, 22 and 25 to 28 shall apply to credit agreements which provide for arrangements to be agreed by the creditor and the consumer in respect of deferred payments or repayment methods, where the consumer is already in default on the initial credit agreement, and where: (
  1. i)such arrangements would be likely to avert the possibility of legal proceedings concerning such default; and (
  2. ii)the consumer would not thereby be subject to terms which are less favourable than those established in the initial credit agreement. Non-applicability. 5. Without prejudice to regulation 4, these regulations shall not apply to credit agreements: (
  3. a)entered into before 1st October 2010: Provided that open-end credit agreements which were entered into before 1st October 2010 shall be regulated by regulations 16, 18, 19, 24, 25
(2)and 25
(3); (
  1. b)which are secured by a hypothec, privilege, or land registry charge, or by a right related to immovable property; (
  2. c)the purpose of which is to acquire or retain property rights over land and or over an existing or projected building; (
  3. d)involving a total amount of credit less than two hundred euro (€200) or more than seventy-five thousand euro (€75,000): Provided that, notwithstanding this provision, these regulations shall apply to unsecured credit agreements the purpose of which is the renovation of a residential immovable property involving a total amount of credit above seventy-five thousand euro (€75,000); (
  4. e)relating to hiring or leasing where an obligation to purchase the object of the agreement is not stipulated either by the agreement itself or by a separate agreement. Such an obligation shall be deemed to exist if it is so decided unilaterally by the creditor; (
  5. f)in the form of an overdraft facility and where the credit has to be repaid within one
(1)month, without prejudice FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) [ S.L. 376.09] to regulation 11; (
  1. g)where the credit is granted free of interest and without any other charges; (
  2. h)under the terms of which the credit has to be repaid within three
(3)months and only insignificant charges are payable; (
  1. i)where the credit is granted by an employer to his employees as a secondary activity free of interest or at annual percentage rates of charge which are lower than those prevailing on the market and which are not offered to the public; (
  2. j)which are concluded with European investment firms as defined in article 2 of the Investment Services Act or with banks or credit institutions or electronic money institutions as defined in article 2 of the Banking Act for the purpose of allowing an investor to carry out a transaction relating to one or more of the instruments listed in the Second Schedule to the Investment Services Act where the European investment firm or bank or credit institution or electronic money institution granting the credit is involved in such transaction;  Cap. 370.    Cap. 371. (
  3. k)which are the outcome of a settlement reached in court or before another statutory authority; (
  4. l)which relate to the deferred payment, free of charge, of an existing debt; (
  5. m)upon the conclusion of which the consumer is requested to deposit an item as security in the creditor’s safekeeping and where the liability of the consumer is strictly limited to that pledged item; and (
  6. n)which relate to loans granted to a restricted public under a statutory provision with a general interest purpose and at lower interest rates than those prevailing on the market or free of interest or on other terms which are more favourable to the consumer than those prevailing on the market and at interest rates not higher than those prevailing on the market. 6.
(1)A creditor shall take all the necessary steps to ensure full compliance with these regulations.
(2)Unless otherwise provided, the obligations of the creditor shall equally apply to a European creditor, and a credit intermediary where a credit intermediary presents or offers credit agreements to consumers, assists consumers by undertaking preparatory work in respect of credit agreements, or concludes credit agreements with Obligation to comply with regulations. 5 6 [ S.L. 376.09] FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) consumers on behalf of the creditor.
(3)Where a credit intermediary participates or intends to participate in accordance with sub-regulation
(2), a credit intermediary shall: (
  1. a)indicate in advertising and documentation intended for consumers, the extent of his powers, in particular whether he works exclusively with one or more creditors or as an independent broker; (
  2. b)disclose the fee, if any, payable by the consumer for his services, which fee shall be agreed to in writing or on a durable medium between the consumer and the credit intermediary before the conclusion of the credit agreement; and (
  3. c)disclose the fee, if any, payable by the consumer to the credit intermediary for his services to the creditor for the purpose of calculating the annual percentage rate of charge.
(4)Regulations 8 to 11 shall not apply to suppliers of goods or services acting as credit intermediaries in an ancillary capacity: Provided that this is without prejudice to the creditor’s obligation to ensure that the consumer receives the pre-contractual information referred to in regulations 9 and 10. Advertisements. Cap. 378. 7.
(1)Without prejudice to the provisions relating to unfair commercial practices under the Consumer Affairs Act, any advertising concerning credit agreements which indicates an interest rate or any figure relating to the cost of the credit to the consumer, the advertisement shall include standard information by means of a representative example in accordance with sub-regulation
(2).
(2)The representative example referred to in sub-regulation
(1)shall specify and comprise in a clear, concise and prominent way, the following items of information: (
  1. a)the borrowing rate, whether fixed, or variable or both, together with particulars of any charges included in the total cost of credit to the consumer; (
  2. b)the total amount of credit; (
  3. c)the annual percentage rate of charge except in the case of credit agreements referred to in regulation 4
(2)(a); (
  1. d)the duration of the agreement; (
  2. e)in the case of credit in the form of a deferred payment for specific goods or services, the cash price and the amount of any advance payment; FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) [ S.L. 376.09] (
  3. f)if applicable, the total amount payable by the consumer; and (
  4. g)if applicable, the amount of each repayment of credit.
(3)(
  1. a)An advertisement concerning credit agreements shall include a clear and concise statement in respect of any obligation to enter into a contract in respect of an ancillary service relating to the credit agreement, in particular an insurance service, where: (
  2. i)the conclusion of that service is compulsory in order to obtain the credit or to obtain it on the terms and conditions advertised; and (
  3. ii)the cost of that service cannot be determined in advance. (
  4. b)The obligation referred to in paragraph (
  5. a)shall be advertised in a prominent way and accompanied by the annual percentage rate of charge. 8.
(1)In good time before a credit agreement is concluded, a creditor, and where applicable a credit intermediary, on the basis of the credit terms and conditions offered by the creditor, and taking into account the preferences expressed and information supplied by the consumer, shall provide to the consumer the information identified under regulation 9, in order to assist the consumer in comparing different offers and reaching an informed decision on whether to conclude a credit agreement with the creditor or otherwise. Obligation to provide precontractual information.
(2)With respect to credit agreements falling under regulation 9, a creditor and, where applicable, a credit intermediary, shall provide adequate explanations to the consumer in order to place the consumer in a position enabling him to assess whether the proposed credit agreement is adapted to his needs and financial situation, where appropriate by explaining the pre-contractual information provided under regulation 9, the essential characteristics of the products proposed and specific effects they may have on the consumer, including the consequences of default in payment by the consumer. 9.
(1)The information to be disclosed by a creditor or credit intermediary to consumers under regulation 8
(1), other than consumers whose credit agreement is regulated by regulations 10 and 11, shall specify: (
  1. a)the type of credit to be provided under the agreement; Content of precontractual information. 7 8 [ S.L. 376.09] FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) (
  2. b)the identity and geographical address of the creditor and, where applicable, of the credit intermediary; (
  3. c)the total amount of credit to be provided under the agreement and the conditions governing the drawdown of credit; (
  4. d)the duration of the credit agreement; (
  5. e)in the case of credit in the form of deferred payment for specific goods or services or linked-credit agreements, the goods, services and the cash price thereof; (
  6. f)the borrowing rate, the conditions governing the application of that rate and, where available, any index or reference rate applicable to the initial borrowing rate, as well as the periods, conditions, and procedures for changing the borrowing rate; and if different rates apply in different circumstances, the above information shall be supplied in respect of all the applicable rates; (
  7. 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 such rate. Where the consumer has informed the creditor of one or more components of his preferred credit, such as the duration of the credit agreement and the total amount of credit, the creditor shall take those components into account; if a credit agreement provides different ways of drawdown with different charges or borrowing rates and the creditor uses the assumptions provided in point (
  8. b)of Part II of the Third Schedule, he shall indicate that other drawdown mechanisms for this type of credit agreement may result in higher annual percentage rates of charge; (
  9. h)the amount, number and frequency of payments to be made by the consumer and where appropriate, the order in which payments shall be allocated to different outstanding balances charged at different borrowing rates for the purpose of reimbursement; (
  10. i)where applicable, the charges for maintaining one or several accounts recording both payment transactions and drawdowns, unless the opening of an account is optional, and the charges for using a means of payment for both payment transactions and drawdowns; (
  11. j)where applicable, any other charges deriving from a credit agreement and the conditions under which those charges may be changed; FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) [ S.L. 376.09] (
  12. k)where applicable, a statement that fees shall be payable by the consumer to a notary public on conclusion of the credit agreement; (
  13. l)the obligation, if any, to enter into a contract for ancillary services relating to the consumer credit agreement, in particular insurance services, where the conclusion of such a contract is compulsory in order to obtain the credit or to obtain it on the terms and conditions marketed; (
  14. m)the interest rate applicable in the case of late payments and the arrangements for its adjustment, and where applicable, any charges payable for default; (
  15. n)payments; a warning relating to the consequences of missing (
  16. o)where applicable, the sureties which need to be identified by the consumer; (
  17. p)in the case of a credit agreement under which payments made by a consumer do not give rise to an immediate corresponding amortisation of the total amount of credit, but are used to constitute capital during periods and under conditions provided in the credit agreement or in an ancillary agreement, a clear and concise statement that such credit agreements do not provide for a guarantee of repayment of the total amount of credit drawn down under the credit agreement unless such a guarantee is given; (
  18. q)the existence or absence of a right of withdrawal; (
  19. r)the consumer’s right of early repayment, and where applicable the creditor’s right to compensation and the way in which compensation is to be determined in accordance with regulation 22; (
  20. s)the consumer’s right to be informed immediately and free of charge pursuant to regulation 13
(2)of the result of a database consultation carried out for the purposes of assessing creditworthiness; (
  1. t)if applicable, the period of time during which the creditor is bound by the pre-contractual information; and (
  2. u)the right of the consumer to be supplied, on request and free of charge from the creditor with a copy of the draft credit agreement. This provision shall not apply if the creditor is at the time of the request unwilling to proceed to the conclusion of the credit agreement with the consumer. 9 10 [ S.L. 376.09] FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT)
(2)The information under sub-regulation
(1)shall be provided by means of the Standard European Consumer Credit Information form contained in the First Schedule:      S.L. 330.07. Provided that the creditor shall be deemed to have discharged the obligation of providing information under this regulation and of providing information under regulations 5
(1)and
(2)of the Distance Selling (Retail Financial Services) Regulations, if the creditor has supplied the information in the form contained in the First Schedule.
(3)If the creditor provides the consumer with additional information to that listed in sub-regulation
(1), a separate document shall be provided for this purpose and shall be annexed to the form contained in the First Schedule.  S.L. 330.10.
(4)Where the credit agreement references a benchmark as defined in regulation 2
(1)of the Malta Financial Services Authority Act (Indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds) Regulations, the name of the benchmark and of its administrator and the potential implications on the consumer shall be provided by the creditor, or where applicable, by the credit intermediary, to the consumer in a separate document, which may be annexed to the form contained in the First Schedule.  S.L. 330.07.
(5)In the case of voice telephony communications as referred to in regulation 5
(3)of the Distance Selling (Retail Financial Services) Regulations, the description of the main characteristics of the financial services to be provided pursuant to regulation 5
(3)(a)(
  1. ii)of the said regulations shall specify, at least: (
  2. a)the total amount of credit and the conditions governing the drawdown; (
  3. b)the duration of the credit agreement; (
  4. c)the goods, services and the cash price in the case of credit in the form of deferred payment for specific goods or services or linked credit agreements; (
  5. d)the borrowing rate, the conditions governing the application of that rate and, where available, any index or reference rate applicable to the initial borrowing rate, as well as the periods, conditions and procedure for changing the borrowing rate; and if different rates apply in different circumstances, the above information shall be supplied in respect of all the applicable rates; (
  6. e)the amount, number and frequency of payments to be made by the consumer and where appropriate, the order in which payments shall be allocated to different outstanding FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) [ S.L. 376.09] 11 balances charged at different borrowing rates for the purpose of reimbursement; (
  7. f)the annual percentage rate of charge illustrated by means of a representative example; and (
  8. g)the total amount payable by the consumer.
(5)If the agreement has been concluded at the consumer’s request using a means of distance communication which does not enable the information to be provided in accordance with subregulation
(1), in particular in the case referred to in sub-regulation
(4), the creditor shall provide the consumer with the full precontractual information, using the form contained in the First Schedule, immediately after the conclusion of the credit agreement. 10.
(1)In the case of a credit agreement which takes the form of an overdraft facility and where the credit has to be repaid on demand or within three
(3)months, the creditor and where applicable, the credit intermediary, shall within reasonable time before the credit agreement is entered into, provide to the consumer on the basis of the credit terms and conditions offered by the creditor and, if applicable, the preferences expressed and information supplied by the consumer, in order to enable him to compare different offers to take an informed decision on whether to conclude a credit agreement, with information which shall specify: (
  1. a)the type of credit to be provided under the agreement; (
  2. b)the identity and geographical address of the creditor and, where applicable, of the credit intermediary; (
  3. c)the total amount of credit to be provided under the agreement; (
  4. d)the duration of the credit agreement; (
  5. e)the borrowing rate, the conditions governing the application of that rate and any index or reference rate applicable to the initial borrowing rate, the charges applicable from the time the credit agreement is concluded, and where applicable, the conditions under which those charges may be changed; (
  6. f)the conditions and procedure for terminating the credit agreement; (
  7. g)where applicable, an indication that the consumer may be requested to repay the amount of credit in full at any time; Pre-contractual information relating to an overdraft facility where credit has to be repaid on demand or within three
(3)months. 12 [ S.L. 376.09] FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) (
  1. h)the interest rate applicable in the case of late payment and the arrangements for its adjustment, and where applicable, any charges payable for default; (
  2. i)the charges applicable from the time the agreement is concluded and, where applicable, the conditions under which those charges may be changed; (
  3. j)the right of the consumer to be informed immediately and free of charge in accordance with regulation 13
(2)of the result of a database consultation carried out for the purposes of assessing creditworthiness; and (k) if applicable, the period of time during which the creditor is bound by the pre-contractual information.
(2)The information under sub-regulation
(1)shall be provided on paper or on another durable medium and all information shall be equally prominent and by means of the Standard European Consumer Credit Information form in the First Schedule:      S.L. 330.07. Provided that, the creditor shall be deemed to have discharged the obligation of providing information under this regulation and the information under regulation 5
(1)and
(2)of the Distance Selling (Retail Financial Services) Regulations, if the creditor has supplied the information contained in the Second Schedule.
(3)In the case of voice telephony communication and where the consumer requests that the overdraft facility be made available with immediate effect, the description of the main characteristics of the financial service shall include at least the items identified under sub-regulation
(1)(c), (e) and (g). In addition, in credit agreements of the kind referred to in sub-regulation
(4), the description of the main characteristics shall include a specification of the duration of the credit agreement. Pre-contractual information relating to arrangements agreed by the consumer and creditor in respect to deferred payments.
(4)In the case of a credit agreement as referred to in regulation 4
(2)(
  1. c)the creditor shall provide the consumer with: (
  2. a)the information provided for under sub-regulation
(1)(
  1. a)to (f), (h), (j), (k); (
  2. b)the amount, number and frequency of payments to be made by the consumer and, where appropriate, the order in which payments shall be allocated to different outstanding balances charged at different borrowing rates for the purposes of reimbursement; (
  3. c)the right to early repayment, and where applicable, information concerning the creditor’s right to compensation and the way in which such compensation shall be FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) [ S.L. 376.09] 13 determined; and (
  4. d)the annual percentage of charge, illustrated by means of representative examples, mentioning all the assumptions used in order to calculate that rate: Provided that where the credit agreement is in the form of an overdraft facility and where the credit has to be repaid on demand or within three
(3)months, it shall be regulated by sub-regulation
(1).
(5)If the agreement has been concluded at the request of the consumer using a means of distance communication which does not enable the information to be provided in accordance with subregulations
(1),
(2)and
(4), including in the cases referred to in subregulation
(3), the creditor shall immediately, after the conclusion of the credit agreement, fulfil his obligations under sub-regulations
(1),
(2)and
(4)by providing the contractual information in accordance with regulation 15 in so far as such regulation is applicable. 11. Notwithstanding regulation 5
(2)(f), in relation to credit agreements in the form of an overdraft facility and where the credit has to be repaid within one
(1)month, in the case of voice telephony communication and where the consumer requests that the overdraft facility be made available with immediate effect, the description of the main characteristics of the financial service shall include at least the items identified under regulation 10
(1)(c), (e) and (g). Pre-contractual information relating to an overdraft facility where credit has to be repaid within one month. 12.
(1)Before the conclusion of a credit agreement, the creditor shall assess the creditworthiness of the consumer on the basis of sufficient information, where appropriate, obtained from the said consumer and, where necessary on the basis of a consultation of the relevant database. Creditworth-iness.
(2)If the parties agree to change the total amount of credit after the conclusion of the credit agreement, the creditor shall: (
  1. a)update the financial information at his disposal concerning the consumer; and (
  2. b)assess the consumer’s creditworthiness, before the total amount of credit is significantly increased. 13.
(1)A European creditor who intends to or has entered into a credit agreement with a consumer in Malta, shall have access under the same conditions as a creditor, to the databases which are available in Malta in order to assess the creditworthiness of the consumer: Provided that a request by a creditor or a European creditor for access to the said database shall not be conditioned in a discriminatory manner but may be refused by the holder of the database Database access. 14 [ S.L. 376.09] FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) if the information to be provided is prohibited by any other law or is contrary to the public policy or public security of Malta.
(2)If the credit application is rejected on the basis of consultation of a database, the creditor shall inform the consumer immediately and without charge of the result of such consultation and of the particulars of the database consulted.         Cap. 586.
(3)This regulation is without prejudice to the application of Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) and the Data Protection Act, as applicable. Right to receive a copy of the credit agreement. 14.
(1)The consumer shall be entitled to receive, free of charge, and upon request, a copy of the draft consumer credit agreement.
(2)Sub-regulation
(1)shall not apply if the creditor is, at the time of the consumer’s request, unwilling to proceed with the conclusion of the credit agreement with the consumer.
(3)Upon conclusion of the consumer credit agreement, all contracting parties shall be entitled to receive a copy of the final credit agreement. Content of consumer credit agreement. 15.
(1)The consumer credit agreement referred to in regulation 14
(3)shall be drawn up in writing or on a durable medium and shall specify, in a clear and concise manner, the following: (a) the information listed under regulation 9
(1)(a), (
  1. c)to (f), (h), (i), (j), (
  2. n)and (o); (
  3. 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; (
  4. c)the annual percentage rate of charge and the total amount payable by the consumer calculated at the time that the credit agreement is concluded: Provided that, all the assumptions used in calculating that rate shall be mentioned; (
  5. d)where capital amortisation of a credit agreement with a fixed duration is involved, the right of the consumer to receive, on request and free of charge, at any time throughout the duration of the credit agreement, a statement of account in the form of an amortisation table, which shall: (
  6. i)indicate the payments owing and the FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) [ S.L. 376.09] periods and conditions relating to the payment of such amounts; (
  7. ii)contain a breakdown of each repayment showing capital amortisation, the interest calculated on the basis of the borrowing rate and where applicable any additional costs; (iii) where the interest is not fixed or the additional costs may be changed under the credit agreement, it shall indicate clearly and concisely that the data contained in the table shall remain valid only until such time as the borrowing rate or the additional costs are changed in accordance with the credit agreement; (
  8. e)an indication, where applicable, that the consumer may, at any time, upon demand, be requested to repay the amount of credit in full; (
  9. f)the interest rate applicable in the case of late payments as applicable at the time of the conclusion of the credit agreement and the arrangement for its adjustment and, where applicable, any charges payable for default; (
  10. g)the existence or absence of a right of withdrawal together with conditions attached to such right, which conditions shall include: (
  11. i)exercised; the period during which the right may be (
  12. ii)the information concerning the obligation of the consumer to pay the capital drawn down and the interest in accordance with regulation 20
(3)(b); and (iii) the amount of interest payable per day; (
  1. h)information concerning the rights resulting in accordance with regulations 21 and 22 and the conditions attached to those rights; (
  2. i)the procedure to be followed in exercising the right of termination of the credit agreement; (
  3. j)whether or not there is an out-of-court procedure for the consumer to make a complaint, the redress mechanism available and the methods for having access to it; (
  4. k)where applicable, the name and address of the competent supervisory authority; (
  5. l)where applicable, other contractual terms and 15 16 [ S.L. 376.09] FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) conditions; and (
  6. m)where applicable, a statement, that notarial fees shall be payable by the consumer.
(2)In the case of a credit agreement under which payments made by the consumer do not give rise to an immediate corresponding amortisation of the total amount of credit, but are used to constitute capital during periods and under the conditions stipulated in the credit agreement or in an ancillary agreement annexed thereto, the information listed in sub-regulation
(1)shall, unless a guarantee is provided, include a clear and concise statement that such credit agreements do not provide a guarantee of repayment of the total amount of credit drawn down under the credit agreement.
(3)Where sub-regulation
(1)(d) 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 stipulated in the credit agreement or in an ancillary agreement, the information required in accordance with sub-regulation
(1)or sub-regulation
(5), as applicable, 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 a credit agreement which takes the form of an overdraft facility where credit has to be repaid on demand or within three
(3)months, the agreement shall specify, in a clear and precise manner, the following information: (
  1. a)the type of credit; (
  2. b)the identities and geographical addresses of the contracting parties, and where applicable, of the credit intermediary involved; (
  3. c)the total amount of the credit and the conditions governing the drawdown; (
  4. d)the borrowing rate, the conditions governing the application of that rate, and where available any index or reference rate applicable to the initial borrowing rate, as well as the periods, conditions and procedure for changing the borrowing rate: FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) [ S.L. 376.09] 17 Provided that if different borrowing rates apply in different circumstances, the information in this paragraph shall be made applicable to all the respective rates; (
  5. e)an indication that the consumer may, at any time, upon demand be requested to repay the amount of credit in full; (
  6. f)conditions relating to the exercise of the right of withdrawal from the credit agreement; (
  7. g)information concerning the charges applicable from the time the agreement is concluded and, where applicable, the conditions under which those charges may be changed; and (
  8. h)the duration of the credit agreement. 16.
(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, the details thereof. Information concerning the borrowing rate.
(2)Notwithstanding sub-regulation
(1), the parties may agree in the credit agreement that the information referred to in subregulation
(1)is to be given to the consumer periodically where all of the following conditions are fulfilled: (
  1. a)the change in the borrowing rate is caused by a change in a reference rate; (
  2. b)the new reference rate is made publicly available by appropriate means which may include a publication on the creditor’s website or a public advert; and (
  3. c)the information concerning the new reference rate is also kept available in the premises of the creditor. 17. Without prejudice to other obligations provided for in these regulations, prior to modifying the terms and conditions of the credit agreement, the creditor shall communicate the following information to the consumer: (
  4. a)a clear description of the proposed changes and, where applicable, of the need for consumer consent or of the changes introduced by operation of law; (
  5. b)the time period for the implementation of the changes referred to in paragraph (a); (
  6. c)the means for complaint available to the consumer Information regarding the modification of the terms and conditions of a credit agreement. 18 [ S.L. 376.09] FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) regarding the changes referred to in paragraph (a); (
  7. d)complaint;  Cap. 555. Obligations in connection with credit agreements in the form of an overdraft facility. the time period available for the filing of any such (
  8. e)the name and address of the Arbiter for Financial Services as established in accordance with the Arbiter for Financial Services Act before whom the consumer may submit the said complaint. 18.
(1)Where the credit agreement covers credit in the form of an overdraft facility: (
  1. a)the consumer shall be entitled to be kept regularly informed in writing or on a durable medium by means of a statement of account of: (
  2. i)the precise period to which the statement of account relates; (
  3. ii)the amounts and dates of drawdowns; (iii) the balance from the previous statement and the date thereof; (
  4. iv)the new balance; (
  5. v)the dates and amounts of payments made by the consumer; (
  6. vi)the borrowing rate applied; (vii) any charges that have been applied; and (viii) where applicable, the minimum amount to be paid; (
  7. b)in the event of a change in the borrowing rate or in any charges payable, the provisions of regulation 16 shall apply. Right to terminate an open-end credit agreement. 19.
(1)A consumer shall be entitled to terminate an openend credit agreement at any time and free of charge.
(2)A credit agreement may however provide for a period of notice not exceeding one
(1)month before termination by the consumer.
(3)If provided for in the credit agreement, the creditor may terminate an open-end consumer credit agreement by giving the consumer not less than two
(2)months’ notice in writing or on a durable medium.
(4)If provided for in the credit agreement, a creditor may, FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) [ S.L. 376.09] for objectively justified reasons terminate the right of the consumer to drawdown credit under an open-end consumer credit agreement: Provided that, for the purpose of this sub-regulation "objectively justified reasons" include, suspicion by the creditor that the consumer is involved in an unauthorised or fraudulent use of the credit granted, or that there is a significant risk that the consumer shall be unable to fulfil his obligation to pay the credit.
(5)In the event of a termination in accordance with subregulation
(4), 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 information would be contrary to public policy or public security or is deemed to be unlawful. 20.
(1)The consumer has a right to withdraw from a credit agreement without providing any reasons.
(2)The right of the consumer to withdraw from a credit agreement shall be exercised within fourteen
(14)running days, which period starts to run either: (
  1. a)from the day of the conclusion of the credit agreement; or (
  2. b)from the day when the consumer receives the contractual terms and conditions and information in accordance with regulation 15 if that day is later than the date referred to in paragraph (a).
(3)If the consumer exercises his right of withdrawal, he shall: (a) in order to give effect to the withdrawal before the expiry of the period specified in sub-regulation
(2), notify the creditor in accordance with the information given to the consumer under regulation 15
(1)(
  1. g)by means which may be proven according to law. The deadline shall be deemed to have been satisfied if that notification, if in writing or on a durable medium that is available and accessible to the creditor, is dispatched before the deadline expires; and (
  2. b)repay to the creditor the credit provided and pay the interest accrued on it, to be calculated on the basis of the borrowing rate specified in the credit agreement, from the date the credit was drawn down until the date it is repaid, without any undue delay and not later than thirty
(30)running days after giving a notification in accordance with paragraph (a): Right of withdrawal. 19 20 [ S.L. 376.09] FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) Provided that, the creditor shall not be entitled to any other compensation from the consumer in the event of withdrawal, except compensation for any non-refundable charges paid by the creditor to any public administrative body.
(4)Where an ancillary service relating to a consumer credit agreement is provided by the creditor or by a third party on the basis of an agreement between the third party and the creditor, the consumer shall not be bound by the ancillary service agreement if the consumer exercises his right of withdrawal in accordance with this regulation. S.L. 330.07.
(5)Regulations 7 and 8 of the Distance Selling (Retail Financial Services) Regulations shall not apply to sub-regulations
(1)to
(4).
(6)Sub-regulations
(1)to
(4)shall not apply to credit agreements which by law are required to be concluded before a Notary Public: Provided that the non-application of sub-regulations
(1)to
(4)is subject to confirmation by the Notary Public that the consumer is guaranteed the rights provided for under regulations 9 and 15. Right of consumer to pursue claim against grantor of credit. 21.
(1)Where the consumer has exercised a right of withdrawal, concerning a contract for the supply of goods or services, he shall no longer be bound by a linked credit agreement.
(2)A consumer shall have the right to take action against the grantor of credit where: (
  1. a)in order to buy goods or obtain services, the consumer enters into a credit agreement with a creditor other than the supplier of such goods or services; (
  2. b)the grantor of the credit and the supplier of the goods or services have a pre-existing agreement where credit is made exclusively by that grantor of credit to customers of that supplier for the acquisition of goods or services from that supplier; (
  3. c)the consumer referred to in paragraph (
  4. a)obtains his credit pursuant to that pre-existing agreement; (
  5. d)the goods or services covered by the linked credit agreement are either not supplied, are supplied only in part, or are not in conformity with the contract for the supply thereof; and (
  6. e)the consumer has pursued his remedies against the supplier but has failed to obtain the remedy to which he is entitled to according to the law or the contract for the supply of FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) [ S.L. 376.09] goods or services. 22.
(1)The consumer shall have the right to discharge his obligations under a consumer credit agreement, in full or in part, before the agreed termination.
(2)In the event of early repayment of credit: (
  1. a)the consumer shall be entitled to a reduction of total costs of the credit consisting of the interest and the costs for the remaining duration of the credit; and (
  2. b)the creditor shall be entitled to a fair and objectively justified compensation for possible costs directly linked to early repayment of credit so long as the early repayment falls within a period for which the borrowing rate is fixed.
(3)The compensation referred to in accordance with subregulation
(2)(
  1. b)may not exceed: (
  2. a)one percent (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
(1)year; and (b) zero point five percent (0.5%) of the amount of credit repaid early, if the period of time between the early repayment and the agreed termination of the credit agreement does not exceed one
(1)year.
(4)(a) The limitations in accordance with sub-regulation
(3)in terms of the amount of compensation which may be claimed by the creditor shall exceptionally not apply if the creditor proves that the loss suffered from early repayment exceeds the amount determined under the said sub-regulation
(3); and (b) The consumer may claim a corresponding reduction to the compensation claimed by the creditor if the compensation claimed exceeds the loss actually suffered: Provided that the loss suffered shall consist of the difference between the initial agreed interest rate and the interest rate at which the creditor may lend out the money repaid early on the market at the time of early repayment. Consideration shall also be given to the impact of early repayment on administrative costs.
(5)Compensation for early repayment in accordance with sub-regulation
(2)(
  1. b)shall not apply: (
  2. a)if the repayment has been made under an insurance contract intended to provide a credit repayment Right of early repayment. 21 22 [ S.L. 376.09] FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) guarantee; (
  3. b)in the case of an overdraft facility; (
  4. c)if the repayment falls within a period for which the borrowing rate is not fixed; or (
  5. d)if the amount of early repayment does not exceed three thousand euro (€3,000) within any period of twelve
(12)months.
(6)A creditor may not claim compensation which is in excess of the amount of interest which the consumer would have paid during the period between the early repayment and the agreed date of termination of the credit agreement. Arrears and enforcement. 23.
(1)Creditors shall have adequate policies and procedures to ensure that they make efforts to exercise, where appropriate, reasonable forbearance before enforcement proceedings are initiated. Such forbearance measures shall take into account, among other elements, the circumstances of the consumer and may consist of, among other possibilities: (
  1. a)a total or partial refinancing of a credit agreement; (
  2. b)a modification of the existing terms and conditions of a credit agreement, which may include among others: (
  3. i)extending the term of the credit agreement; (
  4. ii)changing the type of credit agreement; (iii) deferring payment of all or part of the instalment repayment for a period; (
  5. iv)changing the interest rate; (
  6. v)offering a payment holiday; (
  7. vi)partial repayments; (vii) currency conversions; (viii) partial forgiveness and debt consolidation.
(2)Where the creditor is permitted to define and impose charges on the consumer arising from the default, those charges shall not be greater than is necessary to compensate the creditor for costs it has incurred as a result of the default. Assignment of rights and set-off. 24.
(1)Where the rights of the creditor under a credit agreement are, or the credit agreement itself is, assigned to a third FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) [ S.L. 376.09] 23 party, the consumer shall be entitled to plead against that assignee, any defence available to him against the original creditor. Such defence may also include the right to set-off: Provided that set-off may only be raised in accordance with the relevant provisions of articles 1196 to 1204 of the Civil Code, which shall apply irrespective of anything to the contrary contained in the credit agreement.  Cap. 16.
(2)Where the rights of the creditor are assigned in accordance with sub-regulation
(1), the consumer shall be entitled to be informed of such an assignment, except where the original creditor, by agreement with the assignee, continues to service the credit towards the consumer. 25.
(1)Where a consumer enters into an agreement to open a current account and the consumer is allowed an overrun, the agreement shall also include the information referred to in regulation 10
(1)(e). The creditor shall in any case, provide that information on paper or another durable medium on a regular basis. Overrunning.
(2)In the event of a significant overrunning exceeding a period of one
(1)month, the creditor shall inform the consumer without delay of the overrunning in writing or on a durable medium of the amount involved, the borrowing rate and, of any penalties, charges or interest on arrears which are applicable. 26.
(1)The annual percentage rate of charge, equating on an annual basis, to the present value of all commitments, such as drawdowns, repayments and charges, future or existing, agreed by the creditor and consumer, shall be calculated in accordance with the mathematical formula established in Part I of the Third Schedule.
(2)For the purpose of calculating the annual percentage rate of charge, the following costs shall be included in the total cost of credit to the consumer: (
  1. a)the costs of maintaining an account recording both payment transactions and drawdowns; (
  2. b)the costs of using a means of payment for both payment transactions and drawdowns; and (
  3. c)other costs relating to payment transactions: Provided that any charges payable by the consumer for non-compliance with any of his commitments stipulated in the credit agreement and charges other than the purchase price which, for purchases of goods or services, he is obliged to pay, whether the transaction is effected in cash or on credit, shall not be included in the total cost of credit to the consumer for the purpose of calculating the annual percentage rate of charge: Calculation of the annual percentage rate of charge. 24 [ S.L. 376.09] FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) Provided further that the costs referred to in subregulation
(2)shall not be included in the total cost of credit to the consumer where the opening of the account is optional, and the costs of the account have been clearly and separately shown in the consumer credit agreement or in any other agreement concluded with the consumer.
(3)The calculation of the annual percentage rate of charge shall be based on the assumption that: (
  1. a)the credit agreement is to remain valid for the period agreed and that the creditor and the consumer shall fulfil their obligations under the terms and by the dates specified in the credit agreement; and (
  2. b)the borrowing rate and other charges shall remain fixed in relation to the initial level and shall remain applicable until the end of the credit agreement in the circumstance that the credit agreement contains a clause allowing variations in the borrowing rate and, where applicable, charges contained in the annual percentage rate of charge but unquantifiable at the time of calculation.
(4)Where necessary the additional assumptions established in the Third Schedule may be used in calculating the annual percentage rate of charge. Administrative penalties, other administrative measures and appeals. 27.
(1)Without prejudice to any other power assigned to the Authority in accordance with the Act, these regulations or any other law, where a person falling within the scope of these regulations fails to comply with any of the provisions of these regulations or any Financial Institutions Rules issued thereunder which further implement these regulations, the Authority may, by notice in writing impose on such person an administrative penalty and other administrative measures in accordance with article 23 of the Act, as applicable.
(2)A right of appeal to the Financial Services Tribunal shall lie from the decisions which the Authority shall take in accordance with these regulations and the provisions of article 21 of the Act shall apply mutatis mutandis. Regulations shall prevail. 28.
(1)The provisions of these regulations shall prevail and apply notwithstanding anything to the contrary contained in any credit agreement entered into by the consumer.
(2)Any waiver by the consumer of any of the rights granted to him by these regulations shall be null and void.
(3)The provisions of these regulations shall not be circumvented as a result of the way in which agreements are formulated, in particular by integrating drawdowns or credit FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) [ S.L. 376.09] agreements falling within the scope of these regulations into credit agreements the character or purpose of which would make it possible to avoid its application.
(4)Notwithstanding any provision in the credit agreement to the effect that the applicable law to the credit agreement shall be the law of a country which is not a Member State, the protection granted by these regulations shall continue to apply where the credit agreement has a close link with the territory of Malta or of any other Member State. FIRST SCHEDULE (regulation 9) STANDARD EUROPEAN CONSUMER CREDIT INFORMATION (*) 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.
  1. Identity and contact details of the creditor/credit intermediary Creditor [Identity] 25 26 [ S.L. 376.09] FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) Address Telephone number (*) [Geographical address to be used by the consumer] E-mail address (*) Fax number (*) Web address (*) If applicable Credit intermediary Address Telephone number (*) [Identity] [Geographical address to be used by the consumer] E-mail address (*) Fax number (*) Web address (*)
  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 FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) Instalments and, where appropriate, the order in which instalments will be allocated [ S.L. 376.09] 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 [Sum of total amount of credit and total cost of credit] pay This means the amount of borrowed capital plus interest and possible costs related to your credit. If applicable The credit is granted in the form of a deferred payment for a good or service or is linked to the supply of specific goods or the provision of a service Name of good/service Cash price If applicable Sureties required 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. [Kind of sureties] 27 28 [ S.L. 376.09] FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT)
  3. Costs of the credit The borrowing rate or, if applicable, different borrowing rates which apply to the credit agreement [percentage (%) - fixed, or - variable (with the index or reference rate applicable to the initial borrowing rate), - periods] [percentage (%) A representative exAnnual Percentage Rate of ample mentioning all the  Charge (APR) assumptions used for calculating the This is the total cost expressed as rate to be set out here] an annual percentage of the total amount of credit. The APR is there to help you compare different offers. Is it compulsory, in order to obtain the credit or to obtain it on the terms and conditions marketed, to take out an insurance policy Yes/no [if yes, specify the kind of insecuring the credit? or surance] another service contract? ancillary 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 FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) [ S.L. 376.09] 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 above-mentioned costs related to the credit agreement can be changed If applicable Obligation to pay notarial fees Costs in the case of late payments You will be charged  […… (applicable interest rate and arrangements for its adjustment and, Missing payments could have severe consequences for you (e.g. where applicable, default charges)] forced sale) and make obtaining for missing payments. credit more difficult.
  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. Early repayment You have the right to repay the credit early at any time in full or partially. If applicable [Determination of the  The creditor is entitled to compensation in the case of early compensation (calculation method) in accordance with regulation 22] repayment 29 30 [ S.L. 376.09] FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) Consultation of a database The creditor must inform you immediately and without charge of the result of a consultation of a database, if a credit application is rejected on the basis of such a consultation. This does not apply if the provision of such information is prohibited by European Community law or is contrary to objectives of public policy or public security. Right to a draft 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 This information is valid from …  the creditor is bound by the pre- until … contractual information
  5. Additional information in the case of distance marketing of financial services If applicable (a) concerning the creditor If applicable FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) Representative of the creditor in your Member State of residence Address Telephone number (*) E-mail address (*) Fax number (*) Web address (*) [ S.L. 376.09] [Identity] [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 such 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 such right] The law taken by the creditor as a basis for the establishment of relations with you before the conclusion of the credit contract If applicable Clause stipulating the governing law applicable to the credit agreement and/or the competent court If applicable [Relevant clause to be set out here] 31 32 [ S.L. 376.09] FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) Information and contractual terms shall be supplied in [specific  language]. With your consent, we intend to communicate in [specific language/languages] during the  duration of the credit agreement. Language regime (c) concerning redress Existence of and access to out-of- [Whether or not there is an out-ofcourt complaint and redress  court complaint and redress mechanism for the consumer who is mechanism a party to the distance contract and, if so, the methods of access to it] SECOND SCHEDULE (regulation 10) EUROPEAN CONSUMER CREDIT INFORMATION FOR
(1)overdrafts
(2)debt conversion (*) 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. 1. Identity and contact details of the creditor/credit intermediary Creditor Address Telephone number (*) E-mail address (*) Fax number (*) Web address (*) [Identity] [Geographical address to be used by the consumer] FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) [ S.L. 376.09] If applicable Credit intermediary Address Telephone number (*) [Identity] [Geographical address to be used by the consumer] E-mail address (*) Fax number (*) Web address (*) 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. 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 If applicable [percentage (%) - fixed, or - variable (with the index or reference rate applicable to the initial borrowing rate) 33 34 [ S.L. 376.09] FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) [percentage (%) A representative example mentioning all the  assumptions used for calculating the This is the total cost expressed as rate to be set out here] Annual Percentage Rate of Charge (APR) (*) an annual percentage of the total amount of credit. The APR is there to help you compare different offers. If applicable [The costs applicable from the time the credit agreement is concluded] Costs If applicable The conditions under which those costs may be changed Costs in the case of late payments You will be charged  […… (applicable interest rate and arrangements for its adjustment and, where applicable, default charges)] for missing payments. 4. Other important legal aspects Termination of the credit agreement Consultation of a database [The conditions and procedure for terminating the credit agreement] 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 bases 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 This information is valid from … unthe creditor is bound by the pre- til… contractual information FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) [ S.L. 376.09] 5. Additional information to be given where the precontractual information relates to a consumer credit for debt conversion If applicable 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 [Determination of the The creditor is entitled to compensation in the case of early compensation (calculation method) in accordance with regulation 22] repayment 6. Additional information in the case of distance marketing of financial services If applicable (
  1. a)concerning the creditor If applicable Representative of the creditor in your Member State of residence Address Telephone number (*) E-mail address (*) Fax number (*) Web address (*) If applicable [Identity] [Geographical address to be used by the consumer] 35 36 [ S.L. 376.09] FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) Registration [The trade register in which the creditor is entered and his  registration number or an equivalent means of identification in such register] If applicable The supervisory authority (
  2. 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 running 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 the exercise 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 governing law applicable to the credit agreement and/or the competent court [Relevant Clause to be set out here] If applicable Language regime (
  3. c)concerning redress 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. FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) [ S.L. 376.09] Existence of and access to out-of- [Whether or not there is an out-ofcourt complaint and redress  court complaint and redress mechanism mechanism for the consumer who is party to the distance contract and, if so, the methods of access to it] THIRD SCHEDULE (regulation 9) I. The basic equation expressing the equivalence of drawdowns on the one hand and repayments and charges on the other. The basic equation, which establishes the annual percentage rate of charge (APR), equates on an annual basis, the total present value of drawdowns on the one hand and the total present value of repayments and payments of charges on the other hand, i.e.: Where: ∑ is the APR, M is the number of the last drawdown, K is the number of a drawdown, thus 1 ≤ k ≤ m, is the amount of drawdown is the interval, expressed in years and fractions of a year, between the date of the first drawdown and the date of each subsequent drawdown, thus = 0, is the number of the last repayment or payment of charges, l is the number of a repayment or payment of charges, is the amount of a repayment or payment of charges, is the interval, expressed in years and fractions of a year, between the date of the first drawdown and the date of each repayment or payment of charges. 37 38 [ S.L. 376.09] FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) Remarks: (
  4. a)The amounts paid by both parties at different times shall not necessarily be equal and shall not necessarily be paid at equal intervals. (
  5. b)The starting date shall be that of the first drawdown. (
  6. 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. (
  7. 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. (
  8. e)The equation can be rewritten using a single sum and the concept of flows (Ak), which shall 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 shall be zero. II. The additional assumptions for the calculation of the annual percentage rate of charge shall be as follows: (
  9. 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. (
  10. b)If a credit agreement gives the consumer freedom of drawdown in general but imposes, amongst the different ways of drawdown, a limitation with regard to the amount of credit and period of time, the amount of credit shall be deemed to be drawn down on the earliest date provided for in the credit agreement and in accordance with those drawdown limits. (
  11. c)If a credit agreement provides different ways of drawdown with different charges or borrowing rates, the total amount of credit shall be deemed to be drawn down at the highest charge and borrowing rate applied to the most common FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) [ S.L. 376.09] drawdown mechanism for this type of credit agreement. (
  12. d)In the case of an overdraft facility, the total amount of credit shall be deemed to be drawn down in full and for the whole duration of the credit agreement. If the duration of the overdraft facility is not known, the annual percentage rate of charge shall be calculated on the assumption that the duration of the credit is three
(3)months. (
  1. e)In the case of an open-end credit agreement, other than an overdraft facility, it shall be assumed that: (
  2. i)the credit is provided for a period of one year starting from the date of the initial drawdown, and that the final payment made by the consumer clears the balance of capital, interest and other charges, if any; (
  3. ii)the capital is repaid by the consumer in equal monthly payments, commencing one
(1)month after the date of the initial drawdown. However, in cases where the capital must be repaid only in full, in a single payment, within each payment period, successive drawdowns and repayments of the entire capital by the consumer shall be assumed to occur over the period of one
(1)year. Interest and other charges shall be applied in accordance with those drawdowns and repayments of capital and as provided for in the credit agreement: Provided that for the purposes of this paragraph, an open-end credit agreement is a credit agreement without fixed duration and includes credits which must be repaid in full within or after a period but, once repaid, become available to be drawn down again. (
  1. f)In the case of credit agreements other than overdrafts and open-end credits as referred to in the assumptions established in paragraphs (
  2. d)and (e): (
  3. i)if the date or amount of a repayment of capital to be made by the consumer cannot be ascertained, it shall be assumed that the repayment is made at the earliest date provided for in the credit agreement and is for the lowest amount for which the credit agreement provides; (
  4. ii)if the date of conclusion of the credit agreement is not known, the date of the initial drawdown shall be assumed to be the date which results in the shortest interval between such date and the date of the first payment to be made by the consumer. 39 40 [ S.L. 376.09] FINANCIAL INSTITUTIONS ACT (CONSUMER CREDIT) (
  5. g)Where the date or amount of a payment to be made by the consumer cannot be ascertained on the basis of the credit agreement or the assumptions established in paragraphs (d), (
  6. 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: (
  7. i)interest charges are paid together with the repayments of capital; (
  8. ii)a non-interest charge expressed as a single sum is paid at the date of the conclusion of the credit agreement; (iii) non-interest charges expressed as several payments are paid at regular intervals, commencing with the date of the first repayment of capital, and if the amount of such payments is not known they shall be assumed to be equal amounts; (
  9. iv)the final payment clears the balance of capital, interest and other charges, if any. (
  10. h)If the ceiling applicable to the credit has not yet been agreed, that ceiling is assumed to be €1500. (
  11. i)If different borrowing rates and charges are offered for a limited period or amount, the borrowing rate and the charges shall be deemed to be the highest rate for the whole duration of the credit agreement. (
  12. 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.

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AI explanation based on the official legal text. Indicative, not a substitute for legal advice.