### the union ' s financial assistance may be provided , inter alia , through the following types of financing envisaged by the financial regulation : ### the union ' s financial assistance may be provided through the following types of financing envisaged by the financial regulation :


### exceptionally , in particular where an action programme has not yet been adopted , the commission may , on the basis of the indicative programming documents , adopt individual measures under the same rules and procedures as for action programmes . ### exceptionally , where an action programme has not yet been adopted , the commission may , on the basis of the indicative programming documents , adopt individual measures under the same rules and procedures as for action programmes .


### in order to promote the establishment and functioning of the internal market and to ensure a high degree of protection for consumers throughout the union , it is necessary to ensure the comparability of information relating to annual percentage rates of charge throughout the union . the total cost of the credit to the consumer should comprise all the costs that the consumer has to pay in connection with the credit agreement , except for notarial costs . it should therefore include interest , commissions , taxes , fees for credit intermediaries and any other fees as well as the cost of insurance or other ancillary products , where these are obligatory in order to obtain the credit on the terms and conditions marketed . as the annual percentage rate of charge can at the pre - contractual stage be indicated only through an example , such an example should be representative . therefore , it should correspond , for instance , to the average duration and total amount of credit granted for the type of credit agreement under consideration . given the complexities of calculating an annual percentage rate of charge and in order to be able to accommodate product innovation , technical regulatory standards could be employed to amend or specify the method of calculation of the annual percentage rate of charge . the definition of and methodology used for calculating the annual percentage rate of charge in this directive should be the same as those in directive 2008 / 48 / ec in order to facilitate consumer understanding and comparison . those definitions and methodologies may , however , differ in the future should directive 2008 / 48 / ec be modified at a later date . member states are free to maintain or introduce prohibitions on unilateral changes to the borrowing rate by the creditor . ### in order to promote the establishment and functioning of the internal market and to ensure a high degree of protection for consumers throughout the union , it is necessary to uniformly ensure the comparability of information relating to annual percentage rates of charge throughout the union . the total cost of the credit to the consumer should comprise all the costs that the consumer has to pay in connection with the credit agreement , except for costs incurred in connection with credit protection such as registration fees and notarial costs . it should therefore include interest , commissions , taxes , fees for credit intermediaries and any other fees as well as the cost of insurance or other ancillary products , where these are obligatory in order to obtain the credit on the terms and conditions marketed . as the annual percentage rate of charge can at the pre - contractual stage be indicated only through an example , such an example should be representative . therefore , it should correspond , for instance , to the average duration and total amount of credit granted for the type of credit agreement under consideration . given the complexities of calculating an annual percentage rate of charge and in order to be able to accommodate product innovation , technical regulatory standards could be employed to amend or specify the method of calculation of the annual percentage rate of charge . in order to facilitate comparison , the aim should be to create uniformity as far as possible between the definition of and methodology used for calculating the annual percentage rate of charge in this directive and those in directive 2008 / 48 / ec . however , in the case of credits with a fixed initial interest rate , calculating the apcr in accordance with directive 2008 / 48 / ec may lead to serious misapprehensions among consumers . this should be corrected . further discrepancies may arise in the future should the two directives be modified . member states are free to maintain or introduce prohibitions on unilateral changes to the borrowing rate by the creditor .


### for the purpose of calculating the annual percentage rate of charge , the total cost of the credit to the consumer shall be determined excluding any charges payable by the consumer for non - compliance with any of his commitments laid down in the credit agreement . where the opening of an account is obligatory in order to obtain the credit , the costs of maintaining such an account , the costs of using a means of payment for both payment transactions and drawdowns on that account , and other costs relating to payment transactions shall be included in the total cost of credit to the consumer , unless the costs have been clearly and separately shown in the credit agreement or in any other agreement concluded with the consumer . ### for the purpose of calculating the annual percentage rate of charge , the total cost of the credit to the consumer shall be determined excluding charges payable by the consumer for non - compliance with any of his commitments laid down in the credit agreement . the costs of maintaining an account recording both payment transactions and drawdowns , the costs of using a means of payment for both payment transactions and drawdowns , and other costs relating to payment transactions shall be included in the total cost of credit to the consumer unless the opening of the account is optional and the costs relating to the account have been clearly and separately shown in the credit agreement or in any other agreement concluded with the consumer .


### in order to be in a position to understand the nature of the service , consumers should be made aware of what constitutes a personalised recommendation on suitable credit agreements for that consumer’s needs and financial situation and when it is being provided and when it is not . those providing advice should comply with general standards in order to ensure that the consumer is presented with a range of products suitable for his needs and circumstances . that service should be based on a fair and sufficiently wide - ranging analysis of the products available on the market , and on a close inspection of the consumer’s financial situation , preferences and objectives . such an assessment should be based on up - to - date information and reasonable assumptions on the consumer’s circumstances during the lifetime of the loan . member states may clarify how the suitability of a given product for a consumer should be assessed in the context of the provision of advice . ### in order to be in a position to understand the nature of the service , consumers should be made aware of what constitutes a personalised recommendation on suitable credit agreements for that consumer’s needs and financial situation and when it is being provided and when it is not . it is therefore important to ensure that the service of advice is a distinct service which is separately remunerated in a manner transparent to the consumer . consumers should also be able to rely on the competence of the adviser . those providing advice should comply with general standards in order to ensure that the consumer is presented with a range of products suitable for his needs and circumstances and should also have the necessary professional competence to provide expert advice . that service should be based on a fair and sufficiently wide - ranging analysis of the products available on the market , in the case of provision of advice by an untied credit intermediary , or from within the creditor’s organisation in the case of provision of advice by the creditor or a tied credit intermediary , and on a close inspection of the consumer’s financial situation , preferences and objectives . such an assessment should be based on up - to - date information and reasonable assumptions on the consumer’s circumstances during the lifetime of the loan . member states may clarify how the suitability of a given product for a consumer should be assessed in the context of the provision of advice . the act of making a binding offer to a consumer does not in itself constitute advice .


### for the purpose of calculating the annual percentage rate of charge , the total cost of the credit to the consumer shall be determined excluding any charges payable by the consumer for non - compliance with any of his commitments laid down in the credit agreement . ### the annual percentage rate of charge shall be determined excluding any charges payable by the consumer for non - compliance with any of his commitments laid down in the credit agreement .


### where a member state lays down such conditions , these shall not make the exercise of the right referred to in paragraph 1 excessively difficult or onerous for the consumer . ### where member states may lay down such conditions , these shall not make the exercise of the right referred to in paragraph 1 excessively difficult or onerous for the consumer .


### this directive shall apply to the following credit agreements : ### this directive shall apply to :


### member states shall ensure that creditors and , where applicable , credit intermediaries provide adequate explanations to the consumer on the proposed credit agreement and any ancillary service , in order to place the consumer in a position enabling him to assess whether the proposed credit agreements are adapted to his needs and financial situation . an adequate explanation shall include the provision of personalised information on the characteristics of the credits on offer , without however formulating any recommendation . creditors and , where applicable , credit intermediaries shall accurately assess the level of knowledge and experience with credit of the consumer by any means necessary so as to enable the creditor or the intermediary to determine the level of explanations to be given to the consumer and adjust such explanations accordingly . such adequate explanations shall include an explanation of the information and terms included in the pre - contractual information to be provided in accordance with articles 9 and 10 and of the consequences that concluding the credit agreement may have for the consumer , including in the event of default in payment by the consumer . ### member states shall ensure that creditors and , where applicable , credit intermediaries provide adequate explanations to the consumer , in order to place the consumer in a position enabling him to assess whether the proposed credit agreement is adapted to his needs and financial situation , where appropriate by explaining the pre - contractual information and the information from the esis , the essential characteristics of the products proposed and the specific effects they may have on the consumer , including the consequences of default in payment by the consumer . member states may adapt the manner by which and the extent to which such assistance is given , as well as by whom it is given , to the particular circumstances of the situation in which the credit agreement is offered , the person to whom it is offered and the type of credit offered .


### consider a sufficiently large number of credit agreements available on the market so as to enable the recommendation of the most suitable credit agreements for the consumer ' s needs , financial situation and personal circumstances ; ### consider a sufficiently large number of credit agreements available in the context of their activities so as to enable the recommendation of the most suitable credit agreements for the consumer ' s needs , financial situation and personal circumstances ;


### without prejudice to procedures for the withdrawal of authorisation or to the right of member states to impose criminal sanctions , member states shall ensure , in conformity with their national law , that appropriate administrative measures can be taken or administrative sanctions imposed against persons responsible where the provisions adopted in the implementation of this directive have not been complied with . member states shall ensure that these measures are effective , proportionate and dissuasive . ### member states shall lay down the rules on penalties applicable to infringements of the national provisions adopted pursuant to this directive and shall take all measures necessary to ensure that they are implemented . the penalties provided for shall be effective , proportionate and dissuasive .


### a consumer’s ability to repay his credit prior to the expiry of his credit agreement may play an important role in promoting competition in the single market and the free movement of eu citizens . however , substantial differences exist between the national principles and conditions under which consumers have the ability to repay and the conditions under which such early repayment can take place . whilst recognising the diversity in mortgage funding mechanisms and the range of products available , certain standards with regard to early repayment of credit are essential at union level in order to ensure that consumers have the possibility to discharge their obligations before the date agreed in the credit agreement and the confidence to shop around for the best products to meet their needs . member states should therefore ensure , either by legislation or by means of contractual clauses , that consumers have a statutory or contractual right to early repayment ; nevertheless , member states should be able to define the conditions for the exercise of such a right . these conditions may include time limitations on the exercise of the right , different treatment depending on the type of the borrowing rate , whether fixed or variable , restrictions with regard to the circumstances under which the right may be exercised . member states could also provide that the creditor should be entitled to fair and objectively justified compensation for potential costs directly linked to early repayment of the credit . in any event , if the early repayment falls within a period for which the borrowing rate is fixed , exercise of the right may be made subject to the existence of a special interest on the part of the consumer . such special interest may for example occur in case of divorce or unemployment . where a member state chooses to lay down such conditions , these should not make the exercise of the right excessively difficult or onerous for the consumer . ### a consumer’s ability to repay his credit prior to the expiry of his credit agreement may play an important role in promoting competition in the single market and the free movement of eu citizens . however , substantial differences exist between the national principles and conditions under which consumers have the ability to repay and the conditions under which such early repayment can take place . whilst recognising the diversity in mortgage funding mechanisms and the range of products available , certain standards with regard to early repayment of credit are essential at union level in order to ensure that consumers have the possibility to discharge their obligations before the date agreed in the credit agreement and the confidence to shop around for the best products to meet their needs . member states should therefore ensure , either by legislation or by means of contractual clauses , that consumers have a statutory or contractual right to early repayment while adhering to the principle that fixed interest periods , once agreed , are binding ; member states should be able to define the conditions for the exercise of such a right . these conditions may include time limitations on the exercise of the right , different treatment depending on the type of the borrowing rate , whether fixed or variable , restrictions with regard to the circumstances under which the right may be exercised . member states could also provide that the creditor should be entitled to fair and objectively justified compensation for potential costs , including any loss of interest , directly linked to early repayment of the credit . in any event , if the early repayment falls within a period for which the borrowing rate is fixed , exercise of the right may be made subject to the existence of a special interest on the part of the consumer . such special interest may for example occur in case of divorce or unemployment .


### in order to facilitate the emergence of a smoothly functioning internal market with a high level of consumer protection in the area of credit agreements relating to residential immovable property , a harmonised union framework needs to be established in a number of areas . it is further necessary to establish harmonised standards in order to ensure that consumers looking for credit agreements relating to residential immovable property are able to do so confident in the knowledge that the institutions they interact with act in a professional and responsible manner . ### in order to facilitate the emergence of a smoothly functioning internal market with a level of consumer protection that is appropriate – in terms of its economic and social costs – in the area of credit agreements relating to residential immovable property , a harmonised union framework needs to be established in a number of areas . it is further necessary to establish harmonised standards in order to ensure that consumers looking for credit agreements relating to residential immovable property are able to do so confident in the knowledge that the institutions they interact with act in a professional and responsible manner .


### the power to adopt delegated acts is conferred on the commission subject to the conditions laid down in articles 27 and 28 . ### the delegation of powers referred to in article 9 and and article 12 may be revoked at any time by the european parliament or by the council . a decision to revoke shall put an end to the delegation of the power specified in that decision . it shall take effect on the day following publication of the decision to revoke in the official journal of the european union or at a later date specified therein . it shall not affect the validity of any delegated acts already in force .


### home member states shall ensure that : ### member states shall ensure that :


### credit intermediaries shall be duly authorised to carry out the activities set out in article 3 by a competent authority as defined in article 4 in their home member state . such authorisation shall be granted on the basis of requirements established in the home member state of the credit intermediary and shall include the fulfilment of the professional requirements laid down in article 20 . ### credit intermediaries shall be duly authorised or registered with a competent authority as defined in article 4 in their home member state to carry out the activities set out in article 3 . such authorisation or registration shall be granted on the basis of requirements established in the home member state of the credit intermediary and shall include the fulfilment of the requirements laid down in articles 6 and 21 . what is later on provided for regarding authorisation , applies to registration .


### without prejudice to procedures for the withdrawal of authorisation or to the right of member states to impose criminal sanctions , member states shall ensure , in conformity with their national law , that appropriate administrative measures can be taken or administrative sanctions imposed against persons responsible where the provisions adopted in the implementation of this directive have not been complied with . member states shall ensure that these measures are effective , proportionate and dissuasive . member states shall provide for penalties in particular cases where consumers knowingly provide incomplete or incorrect information in order to obtain a positive creditworthiness assessment where the complete and correct information would have resulted in a negative creditworthiness assessment , and are subsequently unable to fulfil the conditions of the agreement , and shall take all measures necessary to ensure that they are implemented . ### member states shall impose sanctions for infringements of the national provisions adopted on the basis of this directive and shall take all measures necessary to ensure that they are implemented . those sanctions shall be effective , proportionate and dissuasive .


### without prejudice to procedures for the withdrawal of authorisation or to the right of member&#160 ; states to impose criminal sanctions , member&#160 ; states shall ensure , in conformity with their national law , that appropriate administrative measures can be taken or administrative sanctions imposed against persons responsible where the provisions adopted in the implementation of this directive have not been complied with . member&#160 ; states shall ensure that these measures are effective , proportionate and dissuasive . ### member states shall lay down the rules on penalties applicable to infringements of the national provisions adopted pursuant to this directive and shall take all measures necessary to ensure that they are implemented . those sanctions shall be effective , proportionate and dissuasive .


### where a member state lays down such conditions , these shall not make the exercise of the right referred to in paragraph 1 excessively difficult or onerous for the consumer . ### where a member state lays down such conditions , the exercise of the consumer’s right referred to in paragraph 1 shall not be made excessively difficult or onerous by conditions going beyond the parameters set out above .


### the powers to adopt delegated acts referred to in articles 6 , 8 , 9 , 10 , 14 and 16 shall be conferred on the commission for an indeterminate period of time following the entry into force of this directive . 2 . as soon as it adopts a delegated act , the commission shall notify it simultaneously to the european parliament and to the council . 3 . the power to adopt delegated acts is conferred on the commission subject to the conditions laid down in articles 27 and 28 . ### the power to adopt delegated acts referred to in article 12 shall be conferred on the commission subject to the conditions laid down in this article . 2 . the power referred to in article 12 shall be conferred on the commission for an indeterminate period of time following the entry into force of this directive . 3 . the delegation of power referred to in article 12 may be revoked at any time by the european parliament or by the council . a decision to revoke shall put an end to the delegation of the power specified in that decision . it shall take effect the day following the publication of the decision in the official journal of the european union or at a later date specified therein . it shall not affect the validity of any delegated acts already in force . 3a . as soon as it adopts a delegated act , the commission shall notify it simultaneously to the european parliament and to the council . 3b . a delegated act adopted pursuant to article 12 shall enter into force only if no objection has been expressed either by the european parliament or the council within a period of three months of notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object . that period shall be extended by two months at the initiative of the european parliament or the council .


### in order to be in a position to understand the nature of the service , consumers should be made aware of what constitutes a personalised recommendation on suitable credit agreements for that consumer’s needs and financial situation and when it is being provided and when it is not . those providing advice should comply with general standards in order to ensure that the consumer is presented with a range of products suitable for his needs and circumstances . that service should be based on a fair and sufficiently wide - ranging analysis of the products available on the market , and on a close inspection of the consumer’s financial situation , preferences and objectives . such an assessment should be based on up - to - date information and reasonable assumptions on the consumer’s circumstances during the lifetime of the loan . member states may clarify how the suitability of a given product for a consumer should be assessed in the context of the provision of advice . ### in order to be in a position to understand the nature of the service , consumers should be made aware of what constitutes an expert personalised recommendation on suitable credit agreements for that consumer ' s needs and financial situation and when it is being provided . it is therefore important to ensure that this advisory service is a separate service which is paid for separately in a manner transparent to the consumer . consumers should also be able to rely on the competence of the adviser . those providing advice should comply with general standards in order to ensure that the consumer is presented with a range of products suitable for his needs and circumstances and should also have the necessary professional competence to provide expert advice . that service should be based on a fair and sufficiently wide - ranging analysis of the products offered , in the case of advice provided by creditors or tied credit intermediaries , or of the products available on the market , in the case of advice provided by credit intermediaries who are not tied , and on a close inspection of the consumer’s financial situation , preferences and objectives . such an assessment should be based on up - to - date information and reasonable assumptions on the consumer’s circumstances during the lifetime of the loan . member states may clarify how the suitability of a given product for a consumer should be assessed in the context of the provision of advice . the act of making a binding offer to a consumer does not in itself constitute advice .


### powers are delegated to the commission in accordance with article 26 and subject to the conditions of articles 27 and 28 , to specify the requirements provided in paragraph 1 and 2 of this article , and in particular , the necessary requirements for appropriate knowledge and competence . ### the commission shall be empowered to adopt delegated acts in accordance with article 26 , to specify the minimum requirements provided in paragraph 1 and 2 of this article , and in particular , the necessary minimum requirements for appropriate knowledge and competence appropriate to the function and the relevant market .


### in the case of credit agreements containing clauses allowing variations in the borrowing rate and , where applicable , in the charges contained in the annual percentage rate of charge but unquantifiable at the time of calculation , the annual percentage rate of charge shall be calculated on the assumption that the borrowing rate and other charges will be calculated at the level set at the signature of the contract . ### in the case of credit agreements containing clauses allowing variations in the borrowing rate and , where applicable , in the charges contained in the annual percentage rate of charge but unquantifiable at the time of calculation , the annual percentage rate of charge shall be calculated on the assumption that the borrowing rate and other charges will be calculated at the level set at the signature of the contract . where a fixed borrowing rate has been set for the initial period , the borrowing rate shall be no less than that initially determined rate . if the consumer names alternative ancillary services providers , the creditor and the credit intermediary shall recalculate the aprc on the basis of the costs of those ancillary services .


### in order to be in a position to understand the nature of the service , consumers should be made aware of what constitutes a personalised recommendation on suitable credit agreements for that consumer ' s needs and financial situation and when it is being provided and when it is not . those providing advice should comply with general standards in order to ensure that the consumer is presented with a range of products suitable for his needs and circumstances . that service should be based on a fair and sufficiently wide - ranging analysis of the products available on the market , and on a close inspection of the consumer ' s financial situation , preferences and objectives . such an assessment should be based on up - to - date information and reasonable assumptions on the consumer ' s circumstances during the lifetime of the loan . member states may clarify how the suitability of a given product for a consumer should be assessed in the context of the provision of advice . ### in order to be in a position to understand the nature of the service , consumers should be made aware of what constitutes an expert personalised recommendation on suitable credit agreements for that consumer ' s needs and financial situation and when it is being provided and when it is not . it is therefore important to ensure that the service of advice is a distinct service which is separately remunerated in a manner transparent to the consumer . consumers should also be able to rely on the competence of the adviser . those providing advice should comply with general standards in order to ensure that the consumer is presented with a range of products suitable for his needs and circumstances and should also have the necessary professional competence to provide expert advice . that service should be based on a fair and sufficiently wide - ranging analysis of the products available on the market , and on a close inspection of the consumer ' s financial situation , preferences and objectives . such an assessment should be based on up - to - date information and reasonable assumptions on the consumer ' s circumstances during the lifetime of the loan . member states may clarify how the suitability of a given product for a consumer should be assessed in the context of the provision of advice . the act of making a binding offer to a consumer does not in itself constitute advice .


### member states shall ensure that creditors and , where applicable , credit intermediaries provide adequate explanations to the consumer on the proposed credit agreement and any ancillary service , in order to place the consumer in a position enabling him to assess whether the proposed credit agreements are adapted to his needs and financial situation . an adequate explanation shall include the provision of personalised information on the characteristics of the credits on offer , without however formulating any recommendation . creditors and , where applicable , credit intermediaries shall accurately assess the level of knowledge and experience with credit of the consumer by any means necessary so as to enable the creditor or the intermediary to determine the level of explanations to be given to the consumer and adjust such explanations accordingly . ### member states shall ensure that creditors and , where applicable , credit intermediaries provide adequate explanations to the consumer , in order to place the consumer in a position enabling him to assess whether the proposed credit agreement is adapted to his needs and financial situation , where appropriate by explaining the pre - contractual information to be provided in accordance with articles 9 and 10 , the essential characteristics of the products proposed and the specific effects they may have on the consumer , including the consequences of default in payment by the consumer . member states may adapt the manner by which and the extent to which such assistance is given , as well as by whom it is given , to the particular circumstances of the situation in which the credit agreement is offered , the person to whom it is offered and the type of credit offered .


### member states shall ensure that creditors and , where applicable , credit intermediaries provide adequate explanations to the consumer on the proposed credit agreement and any ancillary service , in order to place the consumer in a position enabling him to assess whether the proposed credit agreements are adapted to his needs and financial situation . an adequate explanation shall include the provision of personalised information on the characteristics of the credits on offer , without however formulating any recommendation . creditors and , where applicable , credit intermediaries shall accurately assess the level of knowledge and experience with credit of the consumer by any means necessary so as to enable the creditor or the intermediary to determine the level of explanations to be given to the consumer and adjust such explanations accordingly . such adequate explanations shall include an explanation of the information and terms included in the pre - contractual information to be provided in accordance with articles 9 and 10 and of the consequences that concluding the credit agreement may have for the consumer , including in the event of default in payment by the consumer . ### member states shall ensure that creditors and , where applicable , credit intermediaries provide adequate explanations to the consumer , in order to place the consumer in a position enabling him to assess whether the proposed credit agreement is adapted to his needs and financial situation , where appropriate by explaining the pre - contractual information and the information from the esis , the essential characteristics of the products proposed and the specific effects they may have on the consumer , including the consequences of default in payment by the consumer . member states may adapt the manner by which and the extent to which such assistance is given , as well as by whom it is given , to the particular circumstances of the situation in which the credit agreement is offered , the person to whom it is offered and the type of credit offered .


### where the assessment of the consumer ' s creditworthiness results in a negative prospect for his ability to repay the credit over the lifetime of the credit agreement , the creditor refuses credit . ### creditors effectively and appropriately take into account the outcome of the creditworthiness assessment when deciding whether to make the credit available to the consumer ;


### member states shall ensure that the consumer has a statutory or contractual right to discharge his obligations under a credit agreement prior to the expiry of that agreement . in such cases , he shall be entitled to a reduction in the total cost of the credit , such a reduction consisting of the interest and the costs for the remaining duration of the contract . ### member states shall ensure that the consumer has a statutory or contractual right to discharge fully or partially his obligations under a credit agreement prior to the expiry of that agreement . in such cases , he shall be entitled to a reduction in the total cost of the credit , such a reduction consisting of the interest and the costs for the remaining duration of the contract .


### for the purpose of calculating the annual percentage rate of charge , the total cost of the credit to the consumer shall be determined excluding any charges payable by the consumer for non - compliance with any of his commitments laid down in the credit agreement . where the opening of an account is obligatory in order to obtain the credit , the costs of maintaining such an account , the costs of using a means of payment for both payment transactions and drawdowns on that account , and other costs relating to payment transactions shall be included in the total cost of credit to the consumer , unless the costs have been clearly and separately shown in the credit agreement or in any other agreement concluded with the consumer . ### for the purpose of calculating the annual percentage rate of charge , the total cost of the credit to the consumer shall be determined excluding charges payable by the consumer for non - compliance with any of his commitments laid down in the credit agreement . the costs of maintaining an account recording both payment transactions and drawdowns , the costs of using a means of payment for both payment transactions and drawdowns , and other costs relating to payment transactions shall be included in the total cost of credit to the consumer unless the opening of the account is optional and the costs relating to the account have been clearly and separately shown in the credit agreement or in any other agreement concluded with the consumer .


### in order to promote the establishment and functioning of the internal market and to ensure a high degree of protection for consumers throughout the union , it is necessary to ensure the comparability of information relating to annual percentage rates of charge throughout the union . the total cost of the credit to the consumer should comprise all the costs that the consumer has to pay in connection with the credit agreement , except for notarial costs . it should therefore include interest , commissions , taxes , fees for credit intermediaries and any other fees as well as the cost of insurance or other ancillary products , where these are obligatory in order to obtain the credit on the terms and conditions marketed . as the annual percentage rate of charge can at the pre - contractual stage be indicated only through an example , such an example should be representative . therefore , it should correspond , for instance , to the average duration and total amount of credit granted for the type of credit agreement under consideration . given the complexities of calculating an annual percentage rate of charge and in order to be able to accommodate product innovation , technical regulatory standards could be employed to amend or specify the method of calculation of the annual percentage rate of charge . the definition of and methodology used for calculating the annual percentage rate of charge in this directive should be the same as those in directive 2008 / 48 / ec in order to facilitate consumer understanding and comparison . those definitions and methodologies may , however , differ in the future should directive 2008 / 48 / ec be modified at a later date . member states are free to maintain or introduce prohibitions on unilateral changes to the borrowing rate by the creditor . ### in order to promote the establishment and functioning of the internal market and to ensure a high degree of protection for consumers throughout the union , it is necessary to ensure the comparability of information relating to annual percentage rates of charge throughout the union . the total cost of the credit to the consumer should comprise all the costs that the consumer has to pay in connection with the credit agreement , except for notarial costs and registration costs . it should therefore include interest , commissions , taxes , fees for credit intermediaries and any other fees as well as the cost of insurance , the valuation of the property or other ancillary products , where these are obligatory in order to obtain the credit on the terms and conditions marketed . as the annual percentage rate of charge can at the pre - contractual stage be indicated only through an example , such an example should be representative . therefore , it should correspond , for instance , to the average duration and total amount of credit granted for the type of credit agreement under consideration . given the complexities of calculating an annual percentage rate of charge and in order to be able to accommodate product innovation , technical regulatory standards could be employed to amend or specify the method of calculation of the annual percentage rate of charge . the definition of and methodology used for calculating the annual percentage rate of charge in this directive should be the same as those in directive 2008 / 48 / ec in order to facilitate consumer understanding and comparison . those definitions and methodologies may , however , differ in the future should directive 2008 / 48 / ec be modified at a later date . member states are free to maintain or introduce prohibitions on unilateral changes to the borrowing rate by the creditor .


### whether there is a possibility of early repayment and , where applicable , a description of the conditions attached to early repayment ; ### a description of the conditions attached to early repayment ;


### the powers to adopt delegated acts referred to in articles 6 , 8 , 9 , 10 , 14 and 16 shall be conferred on the commission for an indeterminate period of time following the entry into force of this directive . ### the powers to adopt delegated acts referred to in articles 8 , 9 , 10 and 16 shall be conferred on the commission for an indeterminate period of time following the entry into force of this directive .


### home member states shall ensure that the appropriate level of knowledge and competence is determined on the basis of recognised qualifications or experience . ### member states shall ensure that the appropriate level of knowledge and competence is determined on the basis of recognised qualifications or experience .


### consumers should provide all available relevant information on their financial situation and personal circumstances to the creditor or intermediary in order to facilitate the creditworthiness assessment . the consumer should not , however , be penalised where he is not in a position to provide certain information or assessments of the future evolution of his financial situation . in situations where consumers knowingly provide incomplete or inaccurate information , member states should be able to determine the appropriate penalties . ### consumers should provide all available relevant information on their financial situation and personal circumstances to enable the creditor or intermediary to carry out the creditworthiness assessment , since failure to do so will result in refusal of the credit they seek to obtain . in situations where consumers knowingly provide incomplete or inaccurate information , member states should be able to determine the appropriate penalties .


### the powers to adopt delegated acts referred to in articles 6 , 8 , 9 , 10 , 14 and 16 shall be conferred on the commission for an indeterminate period of time following the entry into force of this directive . ### the power to adopt delegated acts shall be conferred on the commission subject to the&#160 ; conditions laid down in this article .


### the powers to adopt delegated acts referred to in articles 6 , 8 , 9 , 10 , 14 and 16 shall be conferred on the commission for an indeterminate period of time following the entry into force of this directive . ### the powers to adopt delegated acts referred to in article 12 shall be conferred on the commission for an indeterminate period of time following the entry into force of this directive .


### member states shall ensure that creditors and , where applicable , credit intermediaries provide adequate explanations to the consumer on the proposed credit agreement and any ancillary service , in order to place the consumer in a position enabling him to assess whether the proposed credit agreements are adapted to his needs and financial situation . an adequate explanation shall include the provision of personalised information on the characteristics of the credits on offer , without however formulating any recommendation . creditors and , where applicable , credit intermediaries shall accurately assess the level of knowledge and experience with credit of the consumer by any means necessary so as to enable the creditor or the intermediary to determine the level of explanations to be given to the consumer and adjust such explanations accordingly . ### member states shall ensure that creditors and , where applicable , credit intermediaries provide adequate explanations to the consumer on the proposed credit agreement and any ancillary service , in order to place the consumer in a position enabling him to assess whether the proposed credit agreements and ancillary services are adapted to his needs and financial situation . an adequate explanation shall include the provision of personalised information on the characteristics of the credits on offer , without however formulating any recommendation . an explanation of the risks connected with the choice of a variable or of a fixed borrowing rate should be included as well .


### where the credit application is rejected on the basis of the data contained , or lack thereof , in a database that has been consulted , the creditor informs the consumer immediately and without charge of the name of the database that was consulted as well as of its controller and of his right to access and , where necessary , his right to rectify his data in that database . ### where the credit application is rejected on the basis of the data contained , or lack thereof , in a database that has been consulted , the creditor informs the consumer immediately and without charge of the name of the database that was consulted , the result of the consultation as well as of its controller and of his right to access and , where necessary , his right to rectify his data in that database . the information shall be provided unless the provision of such information is prohibited by other union legislation or is contrary to objectives of public policy or public security .


### this directive shall apply to the following credit agreements : ### this directive shall apply to :


### home member states shall make public the criteria they have established in order for credit intermediaries or creditors’ staff to meet their competence requirements . such criteria shall include a list of any recognised qualifications . ### member states shall make public the criteria they have established in order for credit intermediaries or creditors’ staff to meet their competence requirements . such criteria shall include a list of any recognised qualifications .


### for the purposes of this directive , ' advice ' constitutes a separate service from the granting of a credit . such a service can only be marketed as advice when the remuneration of the individual providing the service is transparent to the consumer . ### for the purposes of this directive , ' advice ' constitutes a separate service from the granting of a credit . a separate charge for advice can only be made if the consumer has been informed of the requirement to pay a charge and of method used for its calculation .


### without prejudice to procedures for the withdrawal of authorisation or to the right of member states to impose criminal sanctions , member states shall ensure , in conformity with their national law , that appropriate administrative measures can be taken or administrative sanctions imposed against persons responsible where the provisions adopted in the implementation of this directive have not been complied with . member states shall ensure that these measures are effective , proportionate and dissuasive . ### member states shall lay down the rules on penalties applicable to infringements of the national provisions adopted pursuant to this directive and shall take all measures necessary to ensure that they are implemented . the penalties provided for shall be effective , proportionate and dissuasive .


### the amount of the instalments ; ### if applicable , the amount of the instalments ;


### credit agreements which are secured either by a mortgage or by another comparable security commonly used in a member state on residential immovable property or secured by a right related to residential immovable property . ### credit agreements which are secured either by a mortgage or by another comparable security commonly used in a member state on immovable property or secured by a right related to immovable property .


### where the opening of an account is obligatory in order to obtain the credit , the costs of maintaining such an account , the costs of using a means of payment for both payment transactions and drawdowns on that account , and other costs relating to payment transactions shall be included in the total cost of credit to the consumer , unless the costs have been clearly and separately shown in the credit agreement or in any other agreement concluded with the consumer . ### the costs of maintaining an account recording both payment transactions and drawdowns , the costs of using a means of payment for both payment transactions and drawdowns , and other costs relating to payment transactions shall be included in the total cost of credit to the consumer unless the opening of the account is optional and the costs of the account have been clearly and separately shown in the credit agreement or in any other agreement concluded with the consumer .


### member states shall ensure that these bodies actively cooperate in the resolution of cross - border disputes . ### member states shall encourage these bodies to cooperate so that cross - border disputes concerning credit agreements can also be resolved .


### in order to take account of developments in the markets for credit relating to residential immovable property or in the evolution of credit products as well as economic developments , such as inflation , and in order to provide further explanations on how to address certain of the requirements contained in this directive , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty on the functioning of the european union . in particular , the commission should be empowered to adopt delegated acts to specify the details concerning the professional requirements applicable to creditors’ staff and credit intermediaries , the criteria used for assessing the creditworthiness of the consumer and in ensuring that credit products are not unsuitable for the consumer , and further harmonisation of key terms such as ' default ' the registration criteria and data processing conditions to be applied to credit databases . ### in order to ensure consistent harmonisation , and to take account of developments in the markets for credit relating to residential immovable property or in the evolution of credit products as well as economic developments , such as inflation , and in order to provide further explanations on how to address certain of the requirements contained in this directive , the power to adopt delegated acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission , in particular to specify the details concerning the professional requirements applicable to creditors’ staff and credit intermediaries , the criteria used for assessing the creditworthiness of the consumer and in ensuring that credit products are not unsuitable for the consumer , and further harmonisation of key terms such as ' default ' the registration criteria and data processing conditions to be applied to credit databases . it is particularly important that the commission , during the preparatory work , should hold appropriate consultations , including at expert level . when preparing and drawing up delegated acts , the commission should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and council .


### member states shall ensure that appropriate and effective complaints and redress procedures are established for the out - of - court settlement of disputes concerning rights and obligations established under this directive between creditors and consumers and between credit intermediaries and consumers , using existing bodies where appropriate . member states shall further ensure that all creditors and credit intermediaries adhere to one or more such bodies implementing such complaint and redress procedures . ### member states shall ensure that appropriate and effective out - of - court dispute resolution procedures are put in place for the settlement of consumer disputes concerning credit agreements , using existing bodies where appropriate .


### in order to be in a position to understand the nature of the service , consumers should be made aware of what constitutes a personalised recommendation on suitable credit agreements for that consumer’s needs and financial situation and when it is being provided and when it is not . those providing advice should comply with general standards in order to ensure that the consumer is presented with a range of products suitable for his needs and circumstances . that service should be based on a fair and sufficiently wide - ranging analysis of the products available on the market , and on a close inspection of the consumer’s financial situation , preferences and objectives . such an assessment should be based on up - to - date information and reasonable assumptions on the consumer’s circumstances during the lifetime of the loan . member states may clarify how the suitability of a given product for a consumer should be assessed in the context of the provision of advice . ### in order to be in a position to understand the nature of the service , consumers should be made aware of what constitutes a personalised recommendation on suitable credit agreements for that consumer’s needs and financial situation and when it is being provided and when it is not . it is therefore important to ensure that the service of advice is a distinct service which is separately remunerated in a manner transparent to the consumer . consumers should also be able to rely on the competence of the adviser . those providing advice should comply with general standards in order to ensure that the consumer is presented with a range of products suitable for his needs and circumstances and should also have the necessary professional competence to provide expert advice . that service should be based on a fair and sufficiently wide - ranging analysis of the products available on the market , in the case of provision of advice by an untied credit intermediary , or from within the creditor’s organisation in the case of provision of advice by the creditor or a tied credit intermediary , and on a close inspection of the consumer’s financial situation , preferences and objectives . such an assessment should be based on up - to - date information and reasonable assumptions on the consumer’s circumstances during the lifetime of the loan . member states may clarify how the suitability of a given product for a consumer should be assessed in the context of the provision of advice . the act of making a binding offer to a consumer does not in itself constitute advice .


### where the assessment of the consumer ' s creditworthiness results in a negative prospect for his ability to repay the credit over the lifetime of the credit agreement , the creditor refuses credit . ### creditors effectively and appropriately take into account the outcome of the creditworthiness assessment when deciding whether to make the credit available to the consumer ;


### for the purpose of calculating the annual percentage rate of charge , the total cost of the credit to the consumer shall be determined excluding any charges payable by the consumer for non - compliance with any of his commitments laid down in the credit agreement . where the opening of an account is obligatory in order to obtain the credit , the costs of maintaining such an account , the costs of using a means of payment for both payment transactions and drawdowns on that account , and other costs relating to payment transactions shall be included in the total cost of credit to the consumer , unless the costs have been clearly and separately shown in the credit agreement or in any other agreement concluded with the consumer . ### for the purpose of calculating the annual percentage rate of charge , the total cost of the credit to the consumer shall be determined excluding charges payable by the consumer for non - compliance with any of his commitments laid down in the credit agreement . the costs of maintaining an account recording both payment transactions and drawdowns , the costs of using a means of payment for both payment transactions and drawdowns , and other costs relating to payment transactions shall be included in the total cost of credit to the consumer unless the opening of the account is optional and the costs relating to the account have been clearly and separately shown in the credit agreement or in any other agreement concluded with the consumer .


### where the credit application is rejected on the basis of the data contained , or lack thereof , in a database that has been consulted , the creditor informs the consumer immediately and without charge of the name of the database that was consulted as well as of its controller and of his right to access and , where necessary , his right to rectify his data in that database . ### if the credit application is rejected on the basis of a database consultation , the creditor informs the consumer immediately and without charge of the result of such consultation and of the particulars of the database consulted .


### member states shall ensure that general information about credit agreements is made available by creditors or , where applicable , credit intermediaries at all times in a durable medium or in electronic form . ### member states shall ensure that general information about credit agreements is made available , in a clearly legible and audible manner , by creditors or , where applicable , credit intermediaries at all times in a durable medium or in electronic form .


### a consumer ' s ability to repay his credit prior to the expiry of his credit agreement may play an important role in promoting competition in the single market and the free movement of eu citizens . however , substantial differences exist between the national principles and conditions under which consumers have the ability to repay and the conditions under which such early repayment can take place . whilst recognising the diversity in mortgage funding mechanisms and the range of products available , certain standards with regard to early repayment of credit are essential at union level in order to ensure that consumers have the possibility to discharge their obligations before the date agreed in the credit agreement and the confidence to shop around for the best products to meet their needs . member states should therefore ensure , either by legislation or by means of contractual clauses , that consumers have a statutory or contractual right to early repayment ; nevertheless , member states should be able to define the conditions for the exercise of such a right . these conditions may include time limitations on the exercise of the right , different treatment depending on the type of the borrowing rate , whether fixed or variable , restrictions with regard to the circumstances under which the right may be exercised . member states could also provide that the creditor should be entitled to fair and objectively justified compensation for potential costs directly linked to early repayment of the credit . in any event , if the early repayment falls within a period for which the borrowing rate is fixed , exercise of the right may be made subject to the existence of a special interest on the part of the consumer . such special interest may for example occur in case of divorce or unemployment . where a member state chooses to lay down such conditions , these should not make the exercise of the right excessively difficult or onerous for the consumer . ### a consumer ' s ability to repay his credit prior to the expiry of his credit agreement may play an important role in promoting competition in the single market and the free movement of eu citizens . however , substantial differences exist between the national principles and conditions under which consumers have the ability to repay and the conditions under which such early repayment can take place . whilst recognising the diversity in mortgage funding mechanisms and the range of products available , certain standards with regard to early repayment of credit are essential at union level in order to ensure that consumers have the possibility to discharge their obligations before the date agreed in the credit agreement and the confidence to shop around for the best products to meet their needs . member states should therefore ensure , either by legislation or by means of contractual clauses , that consumers have a statutory or contractual right to early repayment ; nevertheless , member states should be able to define the conditions for the exercise of such a right . these conditions may include time limitations on the exercise of the right , different treatment depending on the type of the borrowing rate , whether fixed or variable , restrictions with regard to the circumstances under which the right may be exercised . member states could also provide that the creditor should be entitled to fair and objectively justified compensation for potential costs directly linked to early repayment of the credit . in any event , if the early repayment falls within a period for which the borrowing rate is fixed , exercise of the right may be made subject to the existence of a legitimate interest on the part of the consumer . such legitimate interest may for example occur in case of divorce or unemployment .


### creditors and credit intermediaries frequently use advertisements , often featuring special terms and conditions , to attract consumers to a particular product . consumers should , therefore , be protected against unfair or misleading advertising practices and should be able to compare advertisements . specific provisions on the advertising of credit agreements relating to residential immovable property and a list of items to be included in advertisements and marketing materials directed at consumers are necessary to enable them to compare different offers . such provisions take into account the specificities of credit agreements relating to residential immovable property , for instance , the fact that if the loan repayments are not met , there is a risk of the consumer losing the property . member states should remain free to introduce or maintain disclosure requirements in their national laws regarding advertising which does not contain information on the cost of credit . ### creditors and credit intermediaries frequently use advertisements , often featuring special terms and conditions , to attract consumers to a particular product . consumers should , therefore , be protected against unfair or misleading advertising practices and should be able to compare advertisements . specific final provisions on the advertising of credit agreements relating to residential immovable property and credit agreements secured by mortgages , and a list of items to be included in advertisements and marketing materials directed at consumers where such advertising specifies interest rates and costs , are necessary to enable them to compare different offers . for the rest , member states should remain free to provide for information requirements in their national laws . such provisions should take into account the specificities of credit agreements relating to residential immovable property .


### member states shall ensure that creditors and , where applicable , credit intermediaries provide adequate explanations to the consumer on the proposed credit agreement and any ancillary service , in order to place the consumer in a position enabling him to assess whether the proposed credit agreements are adapted to his needs and financial situation . an adequate explanation shall include the provision of personalised information on the characteristics of the credits on offer , without however formulating any recommendation . creditors and , where applicable , credit intermediaries shall accurately assess the level of knowledge and experience with credit of the consumer by any means necessary so as to enable the creditor or the intermediary to determine the level of explanations to be given to the consumer and adjust such explanations accordingly . such adequate explanations shall include an explanation of the information and terms included in the pre - contractual information to be provided in accordance with articles 9 and 10 and of the consequences that concluding the credit agreement may have for the consumer , including in the event of default in payment by the consumer . ### member states shall ensure that creditors and , where applicable , credit intermediaries provide adequate explanations to the consumer , in order to place the consumer in a position enabling him to assess whether the proposed credit agreement is adapted to his needs and financial situation , where appropriate by explaining the pre - contractual information and the information from the esis , the essential characteristics of the products proposed and the specific effects they may have on the consumer , including the consequences of default in payment by the consumer . member states may adapt the manner by which and the extent to which such assistance is given , as well as by whom it is given , to the particular circumstances of the situation in which the credit agreement is offered , the person to whom it is offered and the type of credit offered .


### credit intermediaries shall be duly authorised to carry out the activities set out in article 3 by a competent authority as defined in article 4 in their home member state . such authorisation shall be granted on the basis of requirements established in the home member state of the credit intermediary and shall include the fulfilment of the professional requirements laid down in article 20 . ### credit intermediaries shall be duly authorised or registered with a competent authority as defined in article 4 in their home member state to carry out the activities set out in article 3 . such authorisation or registration shall be granted on the basis of requirements established in the home member state of the credit intermediary and shall include the fulfilment of the requirements laid down in articles 6 and 21 . what is later on provided for regarding authorisation , applies to registration .


### without prejudice to procedures for the withdrawal of authorisation or to the right of member states to impose criminal sanctions , member states shall ensure , in conformity with their national law , that appropriate administrative measures can be taken or administrative sanctions imposed against persons responsible where the provisions adopted in the implementation of this directive have not been complied with . member states shall ensure that these measures are effective , proportionate and dissuasive . member states shall provide for penalties in particular cases where consumers knowingly provide incomplete or incorrect information in order to obtain a positive creditworthiness assessment where the complete and correct information would have resulted in a negative creditworthiness assessment , and are subsequently unable to fulfil the conditions of the agreement , and shall take all measures necessary to ensure that they are implemented . ### member states shall impose sanctions for infringements of the national provisions adopted on the basis of this directive and shall take all measures necessary to ensure that they are implemented . those sanctions shall be effective , proportionate and dissuasive .


### the natural persons within the management of creditors and credit intermediaries who are responsible for or have a role in the intermediation , advice or approval of the credit agreement , possess appropriate knowledge and competence in relation to credit agreements . ### the natural persons within the management of credit intermediaries who are responsible for the intermediation or advice with regards to credit agreement , possess appropriate knowledge and competence in relation to credit agreements . the management of credit intermediaries shall ensure that the staff has an appropriate level of knowledge and competence to perform their tasks .


### without prejudice to procedures for the withdrawal of authorisation or to the right of member&#160 ; states to impose criminal sanctions , member&#160 ; states shall ensure , in conformity with their national law , that appropriate administrative measures can be taken or administrative sanctions imposed against persons responsible where the provisions adopted in the implementation of this directive have not been complied with . member&#160 ; states shall ensure that these measures are effective , proportionate and dissuasive . ### member states shall lay down the rules on penalties applicable to infringements of the national provisions adopted pursuant to this directive and shall take all measures necessary to ensure that they are implemented . those sanctions shall be effective , proportionate and dissuasive .


### as soon as it adopts a delegated act , the commission shall notify it simultaneously to the european parliament and to the council . ### the power to adopt delegated acts referred to in article 9 and and article 12 shall be conferred on the commission for an indeterminate period of time following the entry into force of this directive .


### the natural persons within the management of creditors and credit intermediaries who are responsible for or have a role in the intermediation , advice or approval of the credit agreement , possess appropriate knowledge and competence in relation to credit agreements . ### the natural persons within the management of creditors and credit intermediaries who are responsible for or have a role in the intermediation , advice or approval of the credit agreement , possess appropriate knowledge and competence in relation to credit agreements . the persons referred to in the first paragraph of this point shall be required to undergo continuous professional training to validate their knowledge and competence . the management of credit intermediaries shall ensure that staff members have an appropriate level of knowledge and competence to peform their tasks .


### the standard information shall specify the following in a clear , concise and prominent way by means of a representative example : ### the standard information shall specify in a clear , concise and prominent way by means of a representative example :


### member states shall ensure that these bodies actively cooperate in the resolution of cross - border disputes . ### member states shall encourage these bodies to cooperate so that cross - border disputes concerning credit agreements can also be resolved .


### an assessment of creditworthiness should take into consideration all necessary factors that could influence a consumer ' s ability to repay over the lifetime of the loan including , but not limited to , the consumer ' s income , regular expenditures , credit score , past credit history , ability to handle interest rate adjustments , and other existing credit commitments . additional provisions may be necessary to further elaborate on the different elements that may be taken into consideration in a creditworthiness assessment . member states may issue guidance on the method and criteria to assess a consumer’s creditworthiness , for example by setting limits on loan - to - value or loan - to - income ratios . ### an assessment of creditworthiness should take into consideration all necessary factors that could influence a consumer ' s ability to repay over the lifetime of the loan including , but not limited to , the consumer ' s income , regular expenditures , credit score , past credit history , ability to handle interest rate adjustments , and other existing credit commitments . additional provisions may be necessary to further elaborate on the different elements that may be taken into consideration in a creditworthiness assessment . the creditworthiness assessment should take into account all relevant factors known to the creditor at the time of the application for the credit .


### the natural persons within the management of creditors and credit intermediaries who are responsible for or have a role in the intermediation , advice or approval of the credit agreement , possess appropriate knowledge and competence in relation to credit agreements . ### the natural persons within the management of credit intermediaries who are responsible for the intermediation or advice regarding credit agreements possess appropriate knowledge and experience in relation to credit agreements . the management of credit intermediaries shall see after that the personnel has an appropriate level of knowledge and competence for their tasks .


### without prejudice to procedures for the withdrawal of authorisation or to the right of member states to impose criminal sanctions , member states shall ensure , in conformity with their national law , that appropriate administrative measures can be taken or administrative sanctions imposed against persons responsible where the provisions adopted in the implementation of this directive have not been complied with . member states shall ensure that these measures are effective , proportionate and dissuasive . ### member states shall lay down the rules on penalties applicable to infringements of the national provisions adopted pursuant to this directive and shall take all measures necessary to ensure that they are implemented . the penalties provided for shall be effective , proportionate and dissuasive .


### in order to promote the establishment and functioning of the internal market and to ensure a high degree of protection for consumers throughout the union , it is necessary to ensure the comparability of information relating to annual percentage rates of charge throughout the union . the total cost of the credit to the consumer should comprise all the costs that the consumer has to pay in connection with the credit agreement , except for notarial costs . it should therefore include interest , commissions , taxes , fees for credit intermediaries and any other fees as well as the cost of insurance or other ancillary products , where these are obligatory in order to obtain the credit on the terms and conditions marketed . as the annual percentage rate of charge can at the pre - contractual stage be indicated only through an example , such an example should be representative . therefore , it should correspond , for instance , to the average duration and total amount of credit granted for the type of credit agreement under consideration . given the complexities of calculating an annual percentage rate of charge and in order to be able to accommodate product innovation , technical regulatory standards could be employed to amend or specify the method of calculation of the annual percentage rate of charge . the definition of and methodology used for calculating the annual percentage rate of charge in this directive should be the same as those in directive 2008 / 48 / ec in order to facilitate consumer understanding and comparison . those definitions and methodologies may , however , differ in the future should directive 2008 / 48 / ec be modified at a later date . member states are free to maintain or introduce prohibitions on unilateral changes to the borrowing rate by the creditor . ### in order to promote the establishment and functioning of the internal market and to ensure a high degree of protection for consumers throughout the union , it is necessary to uniformly ensure the comparability of information relating to annual percentage rates of charge throughout the union . the total cost of the credit to the consumer should comprise all the costs that the consumer has to pay in connection with the credit agreement , except for costs incurred in connection with credit protection such as registration fees and notarial costs . it should therefore include interest , commissions , taxes , fees for credit intermediaries and any other fees as well as the cost of insurance or other ancillary products , where these are obligatory in order to obtain the credit on the terms and conditions marketed . as the annual percentage rate of charge can at the pre - contractual stage be indicated only through an example , such an example should be representative . therefore , it should correspond , for instance , to the average duration and total amount of credit granted for the type of credit agreement under consideration . given the complexities of calculating an annual percentage rate of charge and in order to be able to accommodate product innovation , technical regulatory standards could be employed to amend or specify the method of calculation of the annual percentage rate of charge . in order to facilitate comparison , the aim should be to create uniformity as far as possible between the definition of and methodology used for calculating the annual percentage rate of charge in this directive and those in directive 2008 / 48 / ec . however , in the case of credits with a fixed initial interest rate , calculating the apcr in accordance with directive 2008 / 48 / ec may lead to serious misapprehensions among consumers . this should be corrected . further discrepancies may arise in the future should the two directives be modified . member states are free to maintain or introduce prohibitions on unilateral changes to the borrowing rate by the creditor .


### however , the parties may agree in the credit agreement that the information referred to in paragraph 1 is to be given to the consumer periodically in cases where the change in the borrowing rate correlates directly with a change in a reference rate , the new reference rate is made publicly available by appropriate means and the information concerning the new reference rate is also kept available in the premises of the creditor . ### however , the parties may agree in the credit agreement that the information referred to in paragraph 1 is to be given to the consumer periodically in cases where the change in the borrowing rate correlates directly with a change in a reference rate , the new reference rate is made publicly available by appropriate means and the information concerning the new reference rate is also kept available in the premises of the creditor , and communicated personally to the consumer together with the amount of new monthly instalments . the creditor may continue to inform consumers periodically about changes in the borrowing rate , where the borrowing rate does not correlate directly with a change in reference rate , if such provisions were in place prior to the entry into force of this directive .


### the creditor shall also list each of the costs by category , indicating their amount , to whom they are to be paid and at what moment . where the amount is not known , the creditor shall provide a possible range or an indication of how the amount will be calculated . ### the creditor shall also provide a detailed list of costs , to whom they are to be paid and at what moment . where the amount is not known , the creditor shall provide a possible range or an indication of how the amount will be calculated .


### at the same time , it is important take into consideration the specificities of credit agreements relating to residential immovable property which justify a differentiated approach . given the nature and the possible consequences of a credit agreement relating to residential immovable property for the consumer , advertising materials and personalised pre - contractual information should include specific risk warnings , for instance about the nature and implications of taking out a security . following what already existed as a voluntary approach by the industry concerning home loans , general pre - contractual information should be made available at all times in addition to the personalised pre - contractual information . furthermore , a differentiated approach is justifiable in order to take into consideration the lessons learnt from the financial crisis in order to ensure that loan origination takes place in a sound manner . in this respect , the provisions on the creditworthiness assessment should be strengthened in comparison to consumer credit , more precise information should be provided by credit intermediaries on their status and relationship with the creditors in order to disclose potential conflicts of interest , and all actors involved in the origination of credit agreements relating to residential immovable property should be adequately authorised , registered and supervised . ### at the same time , it is important to take into consideration the specificities of credit agreements relating to residential immovable property which justify a differentiated approach . given the nature and the possible consequences of a credit agreement relating to residential immovable property for the consumer , advertising materials and personalised pre - contractual information should include specific risk warnings , for instance about the nature and implications of taking out a security . following what already existed as a voluntary approach by the industry concerning home loans , general pre - contractual information should be made available at all times in addition to the personalised pre - contractual information . furthermore , a differentiated approach is justifiable in order to take into consideration the lessons learnt from the financial crisis in order to ensure that loan origination takes place in a sound manner . in this respect , the provisions on the creditworthiness assessment should be strengthened in comparison to consumer credit , more precise information should be provided by credit intermediaries on their status and relationship with the creditors in order to disclose potential conflicts of interest , aspects of the credit agreement and conduct of creditors after the credit agreement has been concluded should be regulated and all actors involved in the origination of credit agreements relating to residential immovable property should be adequately authorised , registered and supervised .


### member states shall ensure that creditors and , where applicable , credit intermediaries provide adequate explanations to the consumer on the proposed credit agreement and any ancillary service , in order to place the consumer in a position enabling him to assess whether the proposed credit agreements are adapted to his needs and financial situation . an adequate explanation shall include the provision of personalised information on the characteristics of the credits on offer , without however formulating any recommendation . creditors and , where applicable , credit intermediaries shall accurately assess the level of knowledge and experience with credit of the consumer by any means necessary so as to enable the creditor or the intermediary to determine the level of explanations to be given to the consumer and adjust such explanations accordingly . ### member states shall ensure that creditors and , where applicable , credit intermediaries provide adequate explanations to the consumer in order to place the consumer in a position enabling him to assess whether the proposed credit agreement is adapted to his needs and to his financial situation , where appropriate by explaining the pre - contractual information to be provided in accordance with article 9 , the essential characteristics of the products proposed and the specific effects they may have on the consumer , including the consequences of default in payment by the consumer . member states may adapt the manner by which and the extent to which such assistance is given , as well as by whom it is given , to the particular circumstances of the situation in which the credit agreement is offered , the person to whom it is offered and the type of credit offered .


### in order to take account of developments in the markets for credit relating to residential immovable property or in the evolution of credit products as well as economic developments , such as inflation , and in order to provide further explanations on how to address certain of the requirements contained in this directive , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty on the functioning of the european union . in particular , the commission should be empowered to adopt delegated acts to specify the details concerning the professional requirements applicable to creditors ' staff and credit intermediaries , the criteria used for assessing the creditworthiness of the consumer and in ensuring that credit products are not unsuitable for the consumer , and further harmonisation of key terms such as ‘ default’ the registration criteria and data processing conditions to be applied to credit databases . ### in order to ensure consistent harmonisation and take account of developments in the markets for credit relating to residential immovable property or in the evolution of credit products as well as economic developments , such as inflation , and in order to provide further explanations on how to address certain of the requirements contained in this directive , the power to adopt acts in accordance with article 290 tfeu should be delegated to the commission , in particular to specify the details concerning the professional requirements applicable to creditors ' staff , credit intermediaries and valuers , further harmonisation of key terms such as ‘ default’ , the registration criteria and data processing conditions to be applied to credit databases , the characteristics of the emki and the procedure for assigning it , common principles for valuation standards and for defining independence , and the avoidance and management of conflicts of interest in valuation of residential immovable property . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . the commission , when preparing and drawing - up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and council .


### where the opening of an account is obligatory in order to obtain the credit , the costs of maintaining such an account , the costs of using a means of payment for both payment transactions and drawdowns on that account , and other costs relating to payment transactions shall be included in the total cost of credit to the consumer , unless the costs have been clearly and separately shown in the credit agreement or in any other agreement concluded with the consumer . ### the costs of maintaining an account recording both payment transactions and drawdowns , the costs of using a means of payment for both payment transactions and drawdowns , and other costs relating to payment transactions shall be included in the total cost of credit to the consumer unless the opening of the account is optional and the costs of the account have been clearly and separately shown in the credit agreement or in any other agreement concluded with the consumer .


### credit intermediaries shall be duly authorised to carry out the activities set out in article 3 by a competent authority as defined in article 4 in their home member state . such authorisation shall be granted on the basis of requirements established in the home member state of the credit intermediary and shall include the fulfilment of the professional requirements laid down in article 20 . ### credit intermediaries shall be duly authorised or registered with a competent authority as defined in article 4 in their home member state to carry out the activities set out in article 3 . such authorisation or registration shall be granted on the basis of requirements established in the home member state of the credit intermediary and shall include the fulfilment of the requirements laid down in articles 6 and 21 . what is later on provided for regarding authorisation , applies to registration .


### in order to take account of developments in the markets for credit relating to residential immovable property or in the evolution of credit products as well as economic developments , such as inflation , and in order to provide further explanations on how to address certain of the requirements contained in this directive , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty on the functioning of the european union . in particular , the commission should be empowered to adopt delegated acts to specify the details concerning the professional requirements applicable to creditors’ staff and credit intermediaries , the criteria used for assessing the creditworthiness of the consumer and in ensuring that credit products are not unsuitable for the consumer , and further harmonisation of key terms such as ' default ' the registration criteria and data processing conditions to be applied to credit databases . ### in order to ensure consistent harmonisation , and to take account of developments in the markets for credit relating to residential immovable property or in the evolution of credit products as well as economic developments , such as inflation , and in order to provide further explanations on how to address certain of the requirements contained in this directive , the power to adopt delegated acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission , in particular to specify the details concerning the professional requirements applicable to creditors’ staff and credit intermediaries , the criteria used for assessing the creditworthiness of the consumer and in ensuring that credit products are not unsuitable for the consumer , and further harmonisation of key terms such as ' default ' the registration criteria and data processing conditions to be applied to credit databases . it is particularly important that the commission , during the preparatory work , should hold appropriate consultations , including at expert level . when preparing and drawing up delegated acts , the commission should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and council .


### in order to be in a position to understand the nature of the service , consumers should be made aware of what constitutes a personalised recommendation on suitable credit agreements for that consumer’s needs and financial situation and when it is being provided and when it is not . those providing advice should comply with general standards in order to ensure that the consumer is presented with a range of products suitable for his needs and circumstances . that service should be based on a fair and sufficiently wide - ranging analysis of the products available on the market , and on a close inspection of the consumer’s financial situation , preferences and objectives . such an assessment should be based on up - to - date information and reasonable assumptions on the consumer’s circumstances during the lifetime of the loan . member states may clarify how the suitability of a given product for a consumer should be assessed in the context of the provision of advice . ### in order to be in a position to understand the nature of the service , consumers should be made aware of what constitutes an expert personalised recommendation on suitable credit agreements for that consumer ' s needs and financial situation and when it is being provided . it is therefore important to ensure that this advisory service is a separate service which is paid for separately in a manner transparent to the consumer . consumers should also be able to rely on the competence of the adviser . those providing advice should comply with general standards in order to ensure that the consumer is presented with a range of products suitable for his needs and circumstances and should also have the necessary professional competence to provide expert advice . that service should be based on a fair and sufficiently wide - ranging analysis of the products offered , in the case of advice provided by creditors or tied credit intermediaries , or of the products available on the market , in the case of advice provided by credit intermediaries who are not tied , and on a close inspection of the consumer’s financial situation , preferences and objectives . such an assessment should be based on up - to - date information and reasonable assumptions on the consumer’s circumstances during the lifetime of the loan . member states may clarify how the suitability of a given product for a consumer should be assessed in the context of the provision of advice . the act of making a binding offer to a consumer does not in itself constitute advice .


### whether there is a possibility of early repayment and , where applicable , a&#160 ; description of the conditions attached to early repayment ; ### whether there is a possibility of early repayment and , where applicable , a description of the conditions attached to early total repayment and early partial repayment .


### member states shall ensure that creditors and , where applicable , credit intermediaries provide adequate explanations to the consumer on the proposed credit agreement and any ancillary service , in order to place the consumer in a position enabling him to assess whether the proposed credit agreements are adapted to his needs and financial situation . an adequate explanation shall include the provision of personalised information on the characteristics of the credits on offer , without however formulating any recommendation . creditors and , where applicable , credit intermediaries shall accurately assess the level of knowledge and experience with credit of the consumer by any means necessary so as to enable the creditor or the intermediary to determine the level of explanations to be given to the consumer and adjust such explanations accordingly . such adequate explanations shall include an explanation of the information and terms included in the pre - contractual information to be provided in accordance with articles 9 and 10 and of the consequences that concluding the credit agreement may have for the consumer , including in the event of default in payment by the consumer . ### member states shall ensure that creditors and , where applicable , credit intermediaries provide adequate explanations to the consumer , in order to place the consumer in a position enabling him to assess whether the proposed credit agreement is adapted to his needs and financial situation , where appropriate by explaining the pre - contractual information and the information from the esis , the essential characteristics of the products proposed and the specific effects they may have on the consumer , including the consequences of default in payment by the consumer . member states may adapt the manner by which and the extent to which such assistance is given , as well as by whom it is given , to the particular circumstances of the situation in which the credit agreement is offered , the person to whom it is offered and the type of credit offered .


### the european parliament and the council should have two months from the date of notification to object to a delegated act . at the initiative of the european parliament or the council , it should be possible to prolong that period by one month with regard to significant areas of concern . it should also be possible for the european parliament and the council to inform the other institutions of their intention not to raise objections . ### the european parliament and the council should have three months from the date of notification to object to a delegated act . at the initiative of the european parliament or the council , it should be possible to prolong that period by three months with regard to significant areas of concern . it should also be possible for the european parliament and the council to inform the other institutions of their intention not to raise objections .


### member states shall ensure that the creditor or credit intermediary , upon request of the consumer , provides the consumer with a copy of the draft credit agreement free of charge . this provision shall not apply in cases where the creditor is unwilling , at the time of the request , to proceed to the conclusion of the credit agreement with the consumer . ### member states shall ensure that the creditor or credit intermediary provides the consumer with a written copy of the draft credit agreement free of charge . this provision shall not apply in cases where the creditor is unwilling , at the time of the request , to proceed to the conclusion of the credit agreement with the consumer .


### member states shall ensure that the creditor and , where applicable , the credit intermediary , without undue delay after the consumer has given the necessary information on his needs , financial situation and preferences in accordance with article 14 , provides the consumer with the personalised information needed to compare the credits available on the market , assess their implications and take an informed decision on whether to conclude a credit agreement . such information , on paper or on another durable medium , shall be provided by means of the european standardised information sheet , as set out in annex ii . ### in good time before the consumer is bound by any credit agreement or offer , the creditor and , where applicable , the credit intermediary shall , on the bases of the credit terms and conditions offered by the creditor and the information received from the consumer on his needs , financial situation and preferences , provide the consumer with the personalised information needed to compare the credits available on the market , assess their implications and take an informed decision on whether to conclude a credit agreement . such information , on paper or on another durable medium , shall be provided by means of the european standardised information sheet , as set out in annex ii .


### member states shall take the necessary measures to ensure that consumers do not lose the protection granted by this directive by virtue of the choice of the law of a third country as the law applicable to the credit agreement . ### member states shall take the necessary measures to ensure that consumers do not lose the protection granted by this directive by virtue of the choice of the law of a third country as the law applicable to the credit agreement , if the credit agreement has a close link with the territory of one or more member states .


### the duration of the credit agreement ; ### if applicable , the duration of the credit agreement ;