S.L. 376.10 Art. 10Content of pre- contractual information.   S.L. 330.10.  S.L. 330.07.

(1) The pre-contractual information to be disclosed to consumers under regulation 9(1) shall specify all of the following elements in a prominent way in Part I of the form contained in the First Schedule, on one (1) page:

(a) the identity of the creditor and, where applicable, of the credit intermediary involved;

(b) the total amount of credit to be provided under the agreement and the conditions governing the drawdown of credit;

(c) the duration of the credit agreement;

(d) the borrowing rate, or all borrowing rates if different borrowing rates apply in different circumstances;

(e) the annual percentage rate of charge and the total amount payable by the consumer;

(f) in the case of a credit in the form of deferred payment for specific goods or services and in the case of linked credit agreements, the specific goods or services and their cash price;

(g) the costs in the case of late payments, that is, the interest rate applicable in the case of late payments and the arrangements for its adjustment and, where applicable, any charges payable for default;

(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 purposes of reimbursement;

(i) warning regarding the consequences of missing or late payments;

(j) the existence or absence of a right of withdrawal and, where applicable, the withdrawal period;

(k) the existence of a right of early repayment and, where applicable, information concerning the creditor’s right to compensation; and

(l) the geographical address, telephone number and email address of the creditor as well as, where applicable, the geographical address, telephone number and email address of the credit intermediary involved:

Provided that in the event that all the elements referred to in sub-regulation (1) cannot be displayed in a prominent way on one (1) page, they shall be displayed in Part I of the form contained in the First Schedule, on two (2) pages at most, in which case, the information referred to in sub-regulation (1)(a) to (g) shall be displayed on the first page of the form.

(2) The pre-contractual information referred to in regulation 8 shall specify all of the following elements, which shall be displayed after, and clearly separated from the elements listed in sub-regulation (1):

(a) the type of credit;

(b) the conditions governing the breakdown;

(c) where different borrowing rates apply in different circumstances, the conditions governing the application of each borrowing rate and, where available, any index or reference rate applicable to each initial borrowing rate, as well as the periods, conditions and procedures for changing each borrowing rate;

(d) where a credit agreement provides different ways of drawdown with different charges or borrowing rates and the creditor uses the assumption provided in the Third Schedule, an indication that other drawdown mechanisms for the relevant type of credit agreement may result in higher annual percentage rates of charge;

(e) the charges for maintaining one or more compulsory accounts recording both payment transactions and drawdowns, 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 any of those charges may be changed, where applicable;

(f) a representative example illustrating the annual percentage rate of charge and the total amount payable by the consumer, referring to all of the assumptions used in order to calculate that rate, provided that 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;

(g) any costs payable by the consumer to a notary on conclusion of the credit agreement, where applicable;

(h) the obligation, if any, to enter into an ancillary service agreement relating to the credit agreement, where the conclusion of such agreement is compulsory in order to obtain the credit or to obtain it on the terms and conditions marketed;

(i) the sureties required, where applicable;

(j) information concerning the way in which the creditor’s compensation shall be determined in the event of early repayment, where applicable;

(k) 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 his creditworthiness;

(l) the right of the consumer, as provided in sub-regulation (8), to be supplied on request on paper or on another durable medium and free of charge, with a copy of the draft credit agreement, provided that the creditor, at the time of the request, is willing to proceed to the conclusion of the credit agreement;

(m) an indication that the price was personalised on the basis of automated processing, including profiling, where applicable;

(n) the period of time during which the creditor is bound by the pre-contractual information provided in accordance with this regulation, where applicable;

(o) the possibility for the consumer of having recourse to an out-of-court complaint and redress mechanism and the methods for having access to it;

(p) a warning and explanation regarding the legal and financial consequences of non-compliance with the other commitments linked to the specific credit agreement;

(q) a repayment schedule containing all payments and repayments over the duration of the credit agreement, including the payments and repayments for any ancillary services relating to the credit agreement which are sold simultaneously, whereby payments and repayments, in the event that different borrowing rates apply in different circumstances, are based on reasonable upward changes in the borrowing rate.

(3) The creditor shall ensure that the information displayed in the form contained in the First Schedule shall:

(a) be consistent and clearly legible;

(b) take into account the technical restraints of the medium on which it is displayed; and

(c) be displayed in an adequate and suitable way on the different channels taking interoperability into account.

(4) If the creditor provides the consumer with additional information to that listed in sub-regulations (1) and (2), a separate document shall be provided for this purpose and shall be annexed to the form contained in the First Schedule.

(5) 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.

(6) 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 in accordance with regulation 5(3)(a)(ii) of the said regulations shall specify, at least:

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

(b) the duration of the credit agreement;

(c) the goods, services and the cash price in the case of credit in the form of deferred payment for specific goods or services or linked credit agreements;

(d) the borrowing rate, the conditions governing the application of such rate and, where available, any index or reference rate applicable to the initial borrowing rate, as well as the periods, conditions and procedure for changing the borrowing rate; and if different rates apply in different circumstances, the above information shall be supplied in respect of all the applicable rates;

(e) the amount, number and frequency of payments to be made by the consumer and where appropriate, the order in which payments shall be allocated to different outstanding balances charged at different borrowing rates for the purpose of reimbursement;

(f) the annual percentage rate of charge illustrated by means of a representative example; and

(g) the total amount payable by the consumer.

(7) 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 sub-regulations (1) and (2), in particular in the case referred to in sub-regulation (6), the creditor shall provide the consumer with the full pre-contractual information, using the form contained in the First Schedule, immediately after the conclusion of the credit agreement.

(8) Upon request from the consumer, the creditor and, where applicable the credit intermediary shall, in addition to the form contained in the First Schedule, provide the consumer free of charge with a copy of the draft credit agreement on paper or on another durable medium, provided that the creditor, at the time of the request, is willing to proceed with the conclusion of the credit agreement with the consumer.

(9) 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 creditor and, where applicable, the credit intermediary shall in the pre-contractual information referred to in sub-regulation (1) and (2) of regulation 9, 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 expressly.