Directive 2014/17/EU of the European Parliament and of the Council of 4 February 2014 on credit agreements for consumers relating to residential immovable property and amending Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No 1093/2010 (Text with EEA relevance) (c. 17)

1. Introductory Text

2. CHAPTER 1 SUBJECT MATTER, SCOPE, DEFINITIONS AND COMPETENT AUTHORITIES

   1. Article 1. Subject matter

   2. Article 2. Level of harmonisation

   3. Article 3. Scope

   4. Article 4. Definitions

   5. Article 5. Competent authorities

3. CHAPTER 2 FINANCIAL EDUCATION

   1. Article 6. Financial education of consumers

4. CHAPTER 3 CONDITIONS APPLICABLE TO CREDITORS, CREDIT INTERMEDIARIES AND APPOINTED REPRESENTATIVES

   1. Article 7. Conduct of business obligations when providing credit to consumers

   2. Article 8. Obligation to provide information free of charge to consumers

   3. Article 9. Knowledge and competence requirements for staff

5. CHAPTER 4 INFORMATION AND PRACTICES PRELIMINARY TO THE CONCLUSION OF THE CREDIT AGREEMENT

   1. Article 10. General provisions applicable to advertising and marketing

   2. Article 11. Standard information to be included in advertising

   3. Article 12. Tying and bundling practices

   4. Article 13. General information

   5. Article 14. Pre-contractual information

   6. Article 15. Information requirements concerning credit intermediaries and appointed representatives

   7. Article 16. Adequate explanations

6. CHAPTER 5 ANNUAL PERCENTAGE RATE OF CHARGE

   1. Article 17. Calculation of the APRC

7. CHAPTER 6 CREDITWORTHINESS ASSESSMENT

   1. Article 18. Obligation to assess the creditworthiness of the consumer

   2. Article 19. Property valuation

   3. Article 20. Disclosure and verification of consumer information

8. CHAPTER 7 DATABASE ACCESS

   1. Article 21. Database access

9. CHAPTER 8 ADVISORY SERVICES

   1. Article 22. Standards for advisory services

10. CHAPTER 9 FOREIGN CURRENCY LOANS AND VARIABLE RATE LOANS

    1. Article 23. Foreign currency loans

    2. Article 24. Variable rate credits

11. CHAPTER 10 SOUND EXECUTION OF CREDIT AGREEMENTS AND RELATED RIGHTS

    1. Article 25. Early repayment

    2. Article 26. Flexible and reliable markets

    3. Article 27. Information concerning changes in the borrowing rate

    4. Article 28. Arrears and foreclosure

12. CHAPTER 11 REQUIREMENTS FOR ESTABLISHMENT AND SUPERVISION OF CREDIT INTERMEDIARIES AND APPOINTED REPRESENTATIVES

    1. Article 29. Admission of credit intermediaries

    2. Article 30. Credit intermediaries tied to only one creditor

    3. Article 31. Appointed representatives

    4. Article 32. Freedom of establishment and freedom to provide services by credit intermediaries

    5. Article 33. Withdrawal of admission of credit intermediaries

    6. Article 34. Supervision of credit intermediaries and appointed representatives

13. CHAPTER 12 ADMISSION AND SUPERVISION OF NON-CREDIT INSTITUTIONS

    1. Article 35. Admission and supervision of non-credit institutions

14. CHAPTER 13 COOPERATION BETWEEN COMPETENT AUTHORITIES OF DIFFERENT MEMBER STATES

    1. Article 36. Obligation to cooperate

    2. Article 37. Settlement of disagreements between competent authorities of different Member States

15. CHAPTER 14 FINAL PROVISIONS

    1. Article 38. Sanctions

    2. Article 39. Dispute resolution mechanisms

    3. Article 40. Exercise of the delegation

    4. Article 41. Imperative nature of this Directive

    5. Article 42. Transposition

    6. Article 43. Transitional provisions

    7. Article 44. Review clause

    8. Article 45. Further initiatives on responsible lending and borrowing

    9. Article 46. Amendment of Directive 2008/48/EC

    10. Article 47. Amendment of Directive 2013/36/EU

    11. Article 48. Amendment of Regulation (EU) No 1093/2010

    12. Article 49. Entry into force

    13. Article 50. Addressees

16. Signature

17. 1. ANNEX I

       CALCULATION OF THE ANNUAL PERCENTAGE RATE OF CHARGE (APRC)

       1. I. Basic equation expressing the equivalence of drawdowns on the one...

       2. II. Additional assumptions for the calculation of the APRC

          1. (a) If a credit agreement gives the consumer freedom of drawdown,...

          2. (b) If a credit agreement provides different ways of drawdown with...

          3. (c) If a credit agreement gives the consumer freedom of drawdown...

          4. (d) If different borrowing rates and charges are offered for a...

          5. (e) For credit agreements for which a fixed borrowing rate is...

          6. (f) If the ceiling applicable to the credit has not yet...

          7. (g) In the case of credit agreements other than overdrafts, bridging...

          8. (h) Where the date or amount of a payment to be...

          9. (i) In the case of an overdraft facility, the total amount...

          10. (j) In the case of a bridging loan, the total amount...

          11. (k) In the case of an open ended credit agreement, other...

          12. (l) In the case of contingent liabilities or guarantees, the total...

          13. (m) In the case of shared equity credit agreements:

    2. ANNEX II

       EUROPEAN STANDARDISED INFORMATION SHEET (ESIS)

       1. PART A

          1. ESIS Model

             1. (Introductory text)

             2. 1. Lender

             3. 2. (Where applicable) Credit intermediary

             4. 3. Main features of the loan

             5. 4. Interest rate and other costs

             6. 5. Frequency and number of payments

             7. 6. Amount of each instalment

             8. 7. (Where applicable) Illustrative repayment table

             9. 8. Additional obligations

             10. 9. Early repayment

             11. 10. Flexible features

             12. 11. Other rights of the borrower

             13. 12. Complaints

             14. 13. Non-compliance with the commitments linked to the loan: consequences for...

             15. (Where applicable) 14. Additional information

             16. 15. Supervisor

       2. PART B Instructions to complete the ESIS

          1. Section ‘Introductory text’

             1. (1) The validity date shall be properly highlighted. For the purpose...

          2. Section ‘1. Lender’

             1. (1) Name, telephone number, and geographical address of the creditor shall...

             2. (2) Information on the e-mail address, fax number, web address and...

             3. (3) In line with Article 3 of Directive 2002/65/EC, where the...

             4. (4) Where Section 2 is not applicable, the creditor shall inform...

          3. (Where applicable) Section ‘2. Credit intermediary’

          4. Section ‘3. Main features of the loan’

             1. (1) This section shall clearly explain the main characteristics of the...

             2. (2) Where the credit currency is different from the national currency...

             3. (3) The duration of the credit shall be expressed in years...

             4. (4) The type of credit shall be clearly indicated (e.g. mortgage...

             5. (5) Where all or part of the credit is an interest-only...

             6. (6) This section shall explain whether the borrowing rate is fixed...

             7. (7) If different borrowing rates apply in different circumstances, the information...

             8. (8) The ‘total amount to be reimbursed’ corresponds to the total...

             9. (9) Where the credit will be secured by a mortgage on...

             10. (10) The creditor shall indicate, where applicable, either:

             11. (11) Where credits are multi-part credits (e.g. concurrently part fixed rate,...

          5. Section ‘4. Interest rate’ and other costs

             1. (1) The reference to ‘interest rate’ corresponds to the borrowing rate...

             2. (2) The borrowing rate shall be mentioned as a percentage value....

             3. (3) In the section on ‘other components of the APRC’ all...

             4. (4) Where a fee is payable for registration of the mortgage...

          6. Section ‘5. Frequency and number of payments’

             1. (1) Where payments are to be made on a regular basis,...

             2. (2) The number of payments indicated shall cover the whole duration...

          7. Section ‘6. Amount of each instalment’

             1. (1) The credit currency and currency of the instalments shall be...

             2. (2) Where the amount of the instalments may change during the...

             3. (3) Where all or part of the credit is an interest-only...

             4. (4) Where the borrowing rate is variable the information shall include...

             5. (5) (Where applicable) Where the credit currency is different from the...

             6. (6) Where the credit is fully or partly a variable rate...

             7. (7) Where the currency used for the payment of instalments is...

             8. (8) Where the credit is a deferred-interest credit under which interest...

          8. Section ‘7. Illustrative repayment table’

             1. (1) This section shall be included where the credit is a...

             2. (2) Member States may require that where the borrowing rate may...

             3. (3) The table to be included in this section shall contain...

             4. (4) For the first repayment year the information shall be given...

             5. (5) Where the borrowing rate is subject to revision and the...

          9. Section ‘8. Additional obligations’

             1. (1) The creditor shall refer in this section to obligations such...

             2. (2) The creditor shall specify the duration of the obligation, e.g....

             3. (3) The creditor shall state whether it is compulsory for the...

          10. Section ‘9. Early repayment’

              1. (1) The creditor shall indicate under what conditions the consumer can...

              2. (2) In the section on exit charges the creditor shall draw...

          11. Section ‘10. Flexible features’

              1. (1) Where applicable, the creditor shall explain the possibility to and...

              2. (2) (Where appropriate) Additional features: Where the product contains any of...

              3. (3) If the feature contains any additional credit, then this section...

              4. (4) If the feature involves a savings vehicle, the relevant interest...

              5. (5) The possible additional features are: ‘Overpayments/Underpayments’ [paying more or less...

              6. (6) The creditor may include any other features offered by the...

          12. Section ‘11. Other rights of the borrower’

              1. (1) The creditor shall clarify the right(s) of e.g. withdrawal or...

              2. (2) Where a reflection period or right of withdrawal for the...

              3. (3) In line with Article 3 of Directive 2002/65/EC, where the...

          13. Section ‘12. Complaints’

              1. (1) This Section shall indicate the internal contact point [name of...

              2. (2) It shall indicate the name of the relevant external body...

              3. (3) In the case of credit agreements with a consumer who...

          14. Section ‘13. Non-compliance with the commitments linked to the credit: consequences for the borrower’

              1. (1) Where non-observance of any of the consumer’s obligations linked to...

              2. (2) For each of those cases, the creditor shall specify, in...

              3. (3) Where the immovable property used to secure the credit may...

          15. Section ‘14. Additional information’

              1. (1) In the case of distance marketing, this section will include...

              2. (2) Where the creditor intends to communicate with the consumer during...

              3. (3) The creditor or credit intermediary shall state the consumer’s right...

          16. Section ‘15. Supervisor’

              1. (1) The relevant authority or authorities for the supervision of the...

    3. ANNEX III

       MINIMUM KNOWLEDGE AND COMPETENCE REQUIREMENTS

       1. 1. The minimum knowledge and competence requirements for creditors’, credit intermediaries’...

       2. 2. When establishing minimum knowledge and competence requirements Member States may...

       3. 3. Member States shall determine the appropriate level of knowledge and...