[:uk]
Directive 2008/48/EC on Credit Agreements for Consumers
Article 2 – Scope
1. This Directive applies to credit agreements.
2. The Directive does not apply to the following:
- (c) Credit agreements involving a total amount of credit less than EUR 200 or more than EUR 75,000.
- (f) Credit agreements where the credit is granted free of interest and without any other charges, and credit agreements under the terms where the credit must be repaid within three months with only insignificant charges payable.
Article 3 – Definitions
(c) Credit Agreement: An agreement where a creditor grants or promises to grant to a consumer credit in the form of deferred payment, loan, or other similar financial accommodation.
(g) Total Cost of the Credit to the Consumer: All costs, including interest, commissions, taxes, and any other fees that the consumer must pay in connection with the credit agreement and that are known to the creditor, except for notarial costs. This includes ancillary service costs, such as insurance premiums, if a service contract is mandatory to obtain the credit or its marketed terms.
(i) Annual Percentage Rate of Charge (APR): The total cost of the credit to the consumer, expressed as an annual percentage of the total amount of credit, including costs referred to in Article 19(2) if applicable.
Article 5 – Pre-contractual Information
1. Before the consumer is bound by any credit agreement or offer, the creditor and, where applicable, the credit intermediary must provide the consumer with necessary information to compare different offers and make an informed decision. This information must be provided in writing or another durable medium using the Standard European Consumer Credit Information form in Annex II.
The information must specify:
- (g) The annual percentage rate of charge and the total amount payable by the consumer.
- (l) The interest rate applicable in case of late payments, arrangements for its adjustment, and any charges payable for default.
Article 10 – Information to be Included in Credit Agreements
Paragraph 2 specifies that the credit agreement must clearly and concisely state:
- (g) The annual percentage rate of charge and the total amount payable by the consumer.
- (l) The interest rate applicable in case of late payments at the time of concluding the credit agreement, arrangements for its adjustment, and any charges payable for default.
Article 19 – Calculation of the Annual Percentage Rate of Charge
1. The APR, equating to the present value of all commitments (drawdowns, repayments, charges) on an annual basis, must be calculated following the mathematical formula in Part I of Annex I.
2. The total cost of credit excludes charges for non-compliance with commitments and charges other than the purchase price for goods or services, payable whether the transaction is in cash or credit. Costs related to account maintenance and payment transactions are included unless the account opening is optional with clearly separated costs.
3. The APR calculation assumes the credit agreement remains valid for the agreed period and that both creditor and consumer fulfill their obligations as specified.
Article 22 – Harmonisation and Imperative Nature of the Directive
3. Member States must ensure that the provisions adopted to implement this Directive cannot be circumvented by the formulation of agreements. Specifically, credit agreements covered by this Directive must not be integrated into agreements with different character or purpose to avoid the Directive’s application.
Annex II – Standard European Consumer Credit Information
Annex II outlines the information to be provided to consumers, including:
- Identity and contact details of the creditor or credit intermediary.
- Main characteristics of the credit product.
- Cost of the credit and related costs, including charges for late payments.
Interpretative Clarifications from Court Judgment
Based on the Court’s interpretation:
- Default interest and out-of-court collection costs do not fall within the definitions of ‘interest’ and ‘other charges’ in Article 2(2)(f) unless the creditor anticipates non-performance at the time of concluding the credit agreement to seek financial advantage.
- These charges are not considered in determining whether a credit agreement is ‘free of interest and without any other charges’ or has ‘only insignificant charges’ unless they are part of the creditor’s business model from the outset.
- The statutory or contractual nature and the amount of these charges do not inherently include them within the scope of Article 2(2)(f).
[:]
