S.L. 378.12 Art. 12Content of consumer credit agreement.

(1) The consumer credit agreement referred to in regulation

11(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 7(1)(a), (c) to (f), (h), (i), (j), (n) and (o);

(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;

(c) the annual percentage rate of charge and the total amount payable by the consumer calculated at the time the credit agreement is concluded: Provided that all the assumptions used in calculating that rate shall be mentioned;

(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. The amortisation table shall:

(i) indicate the payments owing and the periods and conditions relating to the payment of such amounts;

(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 will remain valid only until such time as the borrowing rate or the additional costs are changed in accordance with the credit agreement;

(e) an indication, where applicable, that the consumer may, at any time, upon demand be requested to repay the amount of credit in full;

(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;

(g) the existence or absence of a right of withdrawal together with conditions attached to such right, which conditions shall include:

(i) the period during which the right may be exercised;

(ii) the information concerning the obligation of the consumer to pay the capital drawn down and the interest in accordance with regulation 14(3)(b); and

(iii) the amount of interest payable per day;

(h) information concerning the rights resulting under regulations 15 and 16 and the conditions attached to those rights;

(i) the procedure to be followed in exercising the right of termination of the credit agreement;

(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;

(k) where applicable, the name and address of the competent supervisory authority;

(l) where applicable, other contractual terms and conditions; and

(m) where applicable, a statement, that notarial fees will be payable.

(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 laid down in the credit agreement or in an ancillary agreement, the information contained 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) In the case of a credit agreement falling under regulation 8(1), the agreement shall specify, in a clear and precise manner, the following information:

(a) the type of credit;

(b) the identities and geographical addresses of the contracting parties, and where applicable, of the credit intermediary involved;

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

(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; if different borrowing rates apply in different circumstances, the above information should be made applicable to all the respective rates;

(e) an indication that the consumer may, at any time, upon demand be requested to repay the amount of credit in full;

(f) conditions relating to the exercise of the right of withdrawal from the credit agreement;

(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

(h) the duration of the credit agreement.

(4) (a) Should there be a change in the borrowing rate, the creditor shall:

(i) inform the consumer of such a change before the change enters into force;

(ii) communicate the information in writing or on a durable medium;

(iii) inform the consumer of the amount of payments to be made after the entry into force of the new borrowing rates; and

(iv) if the number or frequency of the payments changes, provide the consumer with the particulars of such payment changes.

(b) However, the parties may agree in the credit agreement that the information referred to in paragraph (a) is to be given to the consumer periodically 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, which may include a publication on the creditor’s website or a public advert, and the information concerning the new reference rate is also kept available in the premises of the creditor.

(4A) 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:

(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;

(b) the time period for the implementation of the changes referred to in paragraph (a);

(c) the means for complaint available to the consumer regarding the changes referred to in paragraph (a);

(d) the time period available for filing any such complaint;

(e) the name and address of the Arbiter for Financial Services as established under the Arbiter for Financial Services Act before whom the consumer may submit the said complaint.

(5) Where the credit agreement covers credit in the form of an overdraft facility:

(a) the consumer is entitled to be kept regularly informed in writing or on a durable medium by means of a statement of account of:

(i) the precise period to which the statement of account relates;

(ii) the amounts and dates of drawdowns;

(iii) the balance from the previous statement and the date thereof;

(iv) the new balance;

(v) the dates and amounts of payments made by the consumer;

(vi) the borrowing rate applied;

(vii) any charges that have been applied; and

(viii) where applicable, the minimum amount to be paid;

(b) should there be a change in the borrowing rate or in any charges payable, the consumer is entitled to be informed in writing or on a durable medium by the creditor of the change involved and before the change enters into force;

(c) however, the parties may agree in the credit agreement that information concerning the changes in the borrowing rate is to be given in the manner provided for in paragraph (a) in cases where the change in the borrowing rate is caused by a change in the reference rate, 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 the information concerning the new reference rate is also kept available in the premises of the creditor.

(6) 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.