S.L. 376.10 Art. 25Overrunning.

(1) Where the consumer enters into an agreement to open a current account, and there is a possibility that the consumer is allowed an overrun, the creditor shall include information on that possibility in such agreement, as well as information on the borrowing rate, the conditions governing the application of such 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 creditor shall in any case provide the consumer with such information on paper or another durable medium chosen by the consumer and specified in the agreement to open a current account, on a regular basis.

(2) In the event of a significant overrunning exceeding a period of one (1) month, the creditor shall inform the consumer without delay, on paper or another durable medium chosen by the consumer and specified in the agreement to open a current account, of all of the following:

(a) the overrunning;

(b) the amount involved;

(c) the borrowing rate;

(d) any penalties, charges or interest on arrears applicable; and

(e) the repayment date:

Provided that in the case of regular overrunning, the creditor shall offer the consumer advisory services, where available, and redirect the consumer at no cost towards the provision of debt advisory services.

(3) This regulation shall be without prejudice to any rule of national law requiring the creditor to offer another kind of credit product when the duration of the overrunning is significant.

(4) The creditor shall notify the consumer in an agreed manner when the overrunning is no longer allowed or that the limit of the overrunning is reduced, at least thirty (30) days prior to the day when the actual cancellation or reduction of the overrunning takes effect.

(5) Where the overrunning is reduced or cancelled, the creditor shall offer the consumer, before the enforcement proceedings have been initiated, at no additional cost, of the possibility to repay the amount actually drawn down to the extent of such reduction or cancellation and, such a repayment shall be made in twelve (12) equal monthly instalments unless the consumer chooses to repay earlier, at the borrowing rate applicable to the overrunning.