S.L. 378.12 Art. 8Pre-contractual information relating to an overdraft facility where credit has to be repaid on demand or within three months.

(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 months, the creditor and, where applicable, the credit intermediary, shall in good 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:

(a) the type of credit to be provided under the agreement;

(b) the identity and geographical address of the creditor and, where applicable, of the credit intermediary;

(c) the total amount of credit to be provided under the agreement;

(d) the duration of the credit agreement;

(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;

(f) the conditions and procedure for terminating the credit agreement;

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

(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;

(i) the charges applicable from the time the agreement is concluded and, where applicable, the conditions under which those charges may be changed;

(j) the consumer’s right to be informed immediately and free of charge pursuant to regulation 20(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. It may be provided by means of the form contained in the Second Schedule: Provided that the creditor shall be deemed to have discharged the obligation of providing information under this regulation and the information under regulations 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.

(4) In the case of a credit agreement as referred to in regulation 4(4) the creditor shall provide the consumer with:

(a) the information provided for under sub-regulation

(1)(a) to (f), (h), (j), (k);

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

(c) the right to early repayment, and where applicable, information concerning the creditor’s right to compensation and the way in which that compensation will be determined; and

(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 months, it shall be regulated by sub-regulation (1).

(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 sub-regulations (1), (2) and (4), including in the cases referred to in sub-regulation (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 pursuant to regulation 12 in so far as that regulation is applicable.