### (15) a number of member states have applied directive 2008/48/ec to areas not covered by its scope to enhance the level of consumer protection. in fact , several of the credit agreements not falling within the scope of that directive can be detrimental for consumers , including short-term high cost loans whose amount is typically lower than the minimum threshold of eur 200 set out in directive 2008/48/ec. in this context , and with the aim to ensure a high level of consumer protection and to facilitate the cross-border consumer credit market , the scope of this directive should cover some agreements that were excluded from the scope of directive 2008/48/ec , such as consumer credit agreements below the amount of eur 200. likewise , other potentially detrimental products , because of the high costs they entail or high fees in case of missed payments , should be covered by this directive , to ensure increased transparency and better consumer protection , resulting in higher consumer confidence. to this extent , leasing agreements , credit agreements in the form of an overdraft facility and where the credit has to be repaid within one month , and credit agreements where the credit is granted free of interest and without any other charges , including buy now pay later schemes , i.e. new digital financial tools that let consumers make purchases and pay them off over time , and credit agreements under the terms of which the credit has to be repaid within three months and only insignificant charges are payable should not be excluded from the scope of application of this directive. moreover , all credit agreement up until eur 100 000 should be included in the scope of application of this directive. the upper threshold of credit agreements under this directive should be increased to take into account indexation to adjust for the effects of inflation since 2008 and in coming years. ### (15) a number of member states have applied directive 2008/48/ec to areas not covered by its scope to enhance the level of consumer protection. exceptions from the scope of the directive do not prevent member states to maintain or introduce an extension to credit agreements whose amount is lower than the minimum threshold of eur 500 or to credit agreements where the credit is granted free of interest and without any other charges , including buy now pay later schemes. moreover , above the minimum threshold of eur 500 , all credit agreement up until eur 100 000 should be included in the scope of application of this directive. the minimum and upper threshold of credit agreements under this directive should be increased to take into account indexation to adjust for the effects of inflation since 2008 and in coming years.


### (15) a number of member states have applied directive 2008/48/ec to areas not covered by its scope to enhance the level of consumer protection. in fact , several of the credit agreements not falling within the scope of that directive can be detrimental for consumers , including short-term high cost loans whose amount is typically lower than the minimum threshold of eur 200 set out in directive 2008/48/ec. in this context , and with the aim to ensure a high level of consumer protection and to facilitate the cross-border consumer credit market , the scope of this directive should cover some agreements that were excluded from the scope of directive 2008/48/ec , such as consumer credit agreements below the amount of eur 200. likewise , other potentially detrimental products , because of the high costs they entail or high fees in case of missed payments , should be covered by this directive , to ensure increased transparency and better consumer protection , resulting in higher consumer confidence. to this extent , leasing agreements , credit agreements in the form of an overdraft facility and where the credit has to be repaid within one month , and credit agreements where the credit is granted free of interest and without any other charges , including buy now pay later schemes , i.e. new digital financial tools that let consumers make purchases and pay them off over time , and credit agreements under the terms of which the credit has to be repaid within three months and only insignificant charges are payable should not be excluded from the scope of application of this directive. moreover , all credit agreement up until eur 100 000 should be included in the scope of application of this directive. the upper threshold of credit agreements under this directive should be increased to take into account indexation to adjust for the effects of inflation since 2008 and in coming years. ### (15) a number of member states have applied directive 2008/48/ec to areas not covered by its scope to enhance the level of consumer protection. in fact , several of the credit agreements not falling within the scope of that directive can be detrimental for consumers , including short-term high cost loans whose amount is typically lower than the minimum threshold of eur 200 set out in directive 2008/48/ec. in this context , and with the aim to ensure a high level of consumer protection and to facilitate the cross-border consumer credit market , the scope of this directive should cover some agreements that were excluded from the scope of directive 2008/48/ec , such as consumer credit agreements below the amount of eur 200. likewise , other potentially detrimental products , because of the high costs they entail or high fees in case of missed payments , should be covered by this directive , albeit subject to a strict application of the principle of proportionality in order to avoid an undue administrative burden , to ensure increased transparency and better consumer protection , resulting in higher consumer confidence. to this extent , leasing agreements , credit agreements in the form of an overdraft facility and where the credit has to be repaid within one month , and credit agreements where the credit is granted free of interest and without any other charges , including buy now pay later schemes , i.e. new digital financial tools that let consumers make purchases and pay them off over time , and credit agreements under the terms of which the credit has to be repaid within three months and only insignificant charges are payable should not be excluded from the scope of application of this directive. moreover , all credit agreement up until eur 100 000 should be included in the scope of application of this directive. the upper threshold of credit agreements under this directive should be increased to take into account indexation to adjust for the effects of inflation since 2008 and in coming years.


### (15) a number of member states have applied directive 2008/48/ec to areas not covered by its scope to enhance the level of consumer protection. in fact , several of the credit agreements not falling within the scope of that directive can be detrimental for consumers , including short-term high cost loans whose amount is typically lower than the minimum threshold of eur 200 set out in directive 2008/48/ec. in this context , and with the aim to ensure a high level of consumer protection and to facilitate the cross-border consumer credit market , the scope of this directive should cover some agreements that were excluded from the scope of directive 2008/48/ec , such as consumer credit agreements below the amount of eur 200. likewise , other potentially detrimental products , because of the high costs they entail or high fees in case of missed payments , should be covered by this directive , to ensure increased transparency and better consumer protection , resulting in higher consumer confidence. to this extent , leasing agreements , credit agreements in the form of an overdraft facility and where the credit has to be repaid within one month , and credit agreements where the credit is granted free of interest and without any other charges , including buy now pay later schemes , i.e. new digital financial tools that let consumers make purchases and pay them off over time , and credit agreements under the terms of which the credit has to be repaid within three months and only insignificant charges are payable should not be excluded from the scope of application of this directive. moreover , all credit agreement up until eur 100 000 should be included in the scope of application of this directive. the upper threshold of credit agreements under this directive should be increased to take into account indexation to adjust for the effects of inflation since 2008 and in coming years. ### (15) a number of member states have applied directive 2008/48/ec to areas not covered by its scope to enhance the level of consumer protection. in fact , several of the credit agreements not falling within the scope of that directive can be detrimental for consumers , including short-term high cost loans whose amount is typically lower than the minimum threshold of eur 200 set out in directive 2008/48/ec. in this context , and with the aim to ensure a high level of consumer protection and to facilitate the cross-border consumer credit market , the scope of this directive should cover some agreements that were excluded from the scope of directive 2008/48/ec , such as consumer credit agreements below the amount of eur 200. likewise , other potentially detrimental products , because of the high costs they entail or high fees in case of missed payments , should be covered by this directive , to ensure increased transparency and better consumer protection , resulting in higher consumer confidence. to this extent , leasing agreements , where an obligation to purchase the object of the agreement is laid down either by the agreement itself or by any separate agreement , credit agreements in the form of an overdraft facility or overrunning and where the credit has to be repaid within one month but also credit agreements under the terms of which the credit has to be repaid within three months and only insignificant charges are payable should not be excluded from the scope of application of this directive. moreover , all credit agreement up until eur 100 000 should be included in the scope of application of this directive. the upper threshold of credit agreements under this directive should be increased to take into account indexation to adjust for the effects of inflation since 2008 and in coming years.


### (24) information to consumers , such as pre-contractual information or general information , should be provided free of charge. ### (24) information to consumers mandated by this directive , such as pre-contractual information or general information , should be provided free of charge.


### (26) consumers who are legally resident in the union should not be discriminated against on ground of their nationality or place of residence , or on any ground as referred to in article 21 of the charter when requesting , concluding or holding a credit agreement or an agreement for the provision of crowdfunding credit services within the union. ### deleted


### (26) consumers who are legally resident in the union should not be discriminated against on ground of their nationality or place of residence , or on any ground as referred to in article 21 of the charter when requesting , concluding or holding a credit agreement or an agreement for the provision of crowdfunding credit services within the union. ### (26) consumers who are legally resident in the union should not be discriminated against on ground of their nationality or place of residence , or on any ground as referred to in article 21 of the charter when requesting , concluding or holding a credit agreement or an agreement for the provision of crowdfunding credit services within the union. however , nothing in this directive should be construed to oblige a creditor , credit intermediary or provider of crowdfunding credit services to provide services in member states in which they do not conduct the business.


### (28) advertising tends to focus on one or several products in particular , while consumers should be able to make their decisions in full knowledge of the range of credit products on offer. in that respect , general information plays an important role in educating the consumer in relation to the broad range of products and services available and the key features thereof. consumers should therefore be able at all times to access general information on credit products available. this should be without prejudice to the obligation to provide consumers with personalised pre-contractual information. ### deleted


### (29) specific provisions should be laid down on advertising of credit agreements or crowdfunding credit services and certain items of standard information to be provided to consumers in order to enable them , in particular , to compare different offers. such information should be given in a clear , concise and prominent way by means of a representative example. the standard information should be shown upfront and saliently , in a clear way and in an engaging format. it should be clearly legible and adapted to take into account the technical constraints of certain media such as mobile telephone screens. temporary promotional conditions , such as a teaser rate with lower interest rate for the initial months of the credit agreement or crowdfunding credit services , should be clearly identified as such. consumers should see all essential information at a glance , even when they watch it on the screen of a mobile telephone. the creditor and , where applicable , credit intermediary and provider of crowdfunding credit services’ telephone number and email address should also be communicated to the consumer to enable him or her to contact the creditor , the credit intermediary or provider of crowdfunding credit services quickly and efficiently. a ceiling should be provided where it is not possible to indicate the total amount of credit as the total sums made available , in particular where a credit agreement gives the consumer freedom of drawdown with a limitation with regard to the amount. the ceiling should indicate the upper limit of credit which can be made available to the consumer. in specific and justified cases , in order to improve consumer understanding of information disclosed in advertising of credit agreements or crowdfunding credit services where the medium used does not allow to visually display it , such as in radio advertising , the amount of information disclosed could be reduced. in addition , member states should remain free to regulate information requirements in their national law regarding advertising of credit agreements or crowdfunding credit services which does not contain information on the cost of the credit. ### (29) specific provisions should be laid down on advertising of credit agreements or crowdfunding credit services and certain items of standard information to be provided to consumers in order to enable them , in particular , to compare different offers. such information should be given in a clear , concise and prominent way by means of a representative example. the standard information should be shown upfront and saliently , in a clear way and in an engaging format. it should be clearly legible and adapted to take into account the technical constraints of certain media such as mobile telephone screens and/or digital channels. temporary promotional conditions , such as a teaser rate with lower interest rate for the initial months of the credit agreement or crowdfunding credit services , should be clearly identified as such. consumers should see essential information at a glance , with further information made available on the consumer by clicking or swiping even when they watch it on the screen of a mobile telephone the creditor and , where applicable , credit intermediary and provider of crowdfunding credit services’ telephone number and email address should also be communicated to the consumer to enable him or her to contact the creditor , the credit intermediary or provider of crowdfunding credit services quickly and efficiently. a ceiling should be provided where it is not possible to indicate the total amount of credit as the total sums made available , in particular where a credit agreement gives the consumer freedom of drawdown with a limitation with regard to the amount. the ceiling should indicate the upper limit of credit which can be made available to the consumer. in specific and justified cases , in order to improve consumer understanding of information disclosed in advertising of credit agreements or crowdfunding credit services where the medium used does not allow to visually display it , such as in radio advertising or digital channels , the amount of information disclosed could be reduced. general and generic information should be provided through an appropriate medium which may include digital channels such as the undertaking's websites , etc. in addition , member states should remain free to regulate information requirements in their national law regarding advertising of credit agreements or crowdfunding credit services which does not contain information on the cost of the credit.


### the information obtained in accordance with this paragraph shall be appropriately verified , where necessary through reference to independently verifiable documentation. ### the information obtained in accordance with this paragraph shall be appropriately verified , where necessary and proportionate through reference to independently verifiable documentation.


### 4. member states shall ensure that the creditor or the provider of crowdfunding credit services only makes the credit available to the consumer where the result of the creditworthiness assessment indicates that the obligations resulting from the credit agreement or the agreement for the provision of crowdfunding credit services are likely to be met in the manner required under that agreement. ### 4. member states shall ensure that the creditor or the provider of crowdfunding credit services only makes the credit available to the consumer where the result of the creditworthiness assessment indicates that no substantial doubts exist that the obligations resulting from the credit agreement or the agreement for the provision of crowdfunding credit services are met in the manner required under that agreement.


### notwithstanding the first subparagraphs , where the result of the creditworthiness assessment indicates that the obligations resulting from the credit agreement or the agreement for the provision of crowdfunding credit services are not likely to be met in the manner required under that agreement , the creditor or the provider of crowdfunding credit services may exceptionally make credit available to the consumer in specific and well justified circumstances. ### notwithstanding the first subparagraphs , where the result of the creditworthiness assessment indicates that the obligations resulting from the credit agreement or the agreement for the provision of crowdfunding credit services are not likely to be met in the manner required under that agreement , member states may provide an option in national law which allows the creditor or the provider of crowdfunding credit services to exceptionally make credit available to the consumer in specific and well justified circumstances. member states shall not be obliged to provide this option.


### notwithstanding the first subparagraphs , where the result of the creditworthiness assessment indicates that the obligations resulting from the credit agreement or the agreement for the provision of crowdfunding credit services are not likely to be met in the manner required under that agreement , the creditor or the provider of crowdfunding credit services may exceptionally make credit available to the consumer in specific and well justified circumstances. ### notwithstanding the first subparagraphs , where the result of the creditworthiness assessment indicates that the obligations resulting from the credit agreement or the agreement for the provision of crowdfunding credit services are not likely to be met in the manner required under that agreement , the creditor or the provider of crowdfunding credit services may make credit available to the consumer in justified circumstances and upon issuing a warning to the consumer.


### 1. member states shall require that the creditor or the provider of crowdfunding credit services inform the consumer of any change in the borrowing rate , on paper or another durable medium , before the change enters into force. ### 1. member states shall require that the creditor or the provider of crowdfunding credit services inform the consumer of any change in the borrowing rate , on paper or another durable medium chosen by the consumer , at least seven days before the change enters into force.


### 2. where a credit has been granted in the form of an overdraft facility , member states shall require that the creditor informs the consumer , on paper or another durable medium , of increases in the borrowing rate or in any charges payable , before the change in question enters into force. ### 2. where a credit has been granted in the form of an overdraft facility , member states shall require that the creditor informs the consumer , on paper or another durable medium chosen by the consumer , of increases in the borrowing rate or in any charges payable , at least seven days before the change in question enters into force.


### 1. member states shall ensure that a consumer who has exercised the right of withdrawal based on union law , concerning a contract for the supply of goods or services she or he shall no longer be bound by a linked credit agreement. ### 1. member states shall ensure that the cooling-off period referred to in article 26(7) is respected and that a consumer who has exercised the right of withdrawal under article 26 or based on union law , concerning a contract for the supply of goods or services she or he shall no longer be bound by a linked credit agreement.


### 4. by way of derogation from paragraph 2 , member states may provide that: ### deleted


### article 31 ### deleted


### 1. member states shall introduce caps on one or more of the following: ### 1. member states may introduce caps on one or more of the following by taking due account of the guidelines referred to in paragraph 2a:


### interest rates applicable to credit agreements or to crowdfunding credit services; ### deleted


### the remuneration policy is consistent with and promotes sound and effective risk management and does not encourage risk-taking that exceeds the level of tolerated risk of the creditor; ### the remuneration policy is consistent with and promotes sound and effective risk management and does not encourage excessive risk-taking.


### 4. member states shall ensure that where creditors , credit intermediaries or providers of crowdfunding credit services provide advisory services the remuneration structure of the staff involved does not prejudice their ability to act in the consumer’s best interest and is not contingent on sales targets. in order to achieve that goal , member states may also ban commissions paid by the creditor to the credit intermediary. ### 4. member states shall ensure that where creditors , credit intermediaries or providers of crowdfunding credit services provide advisory services the remuneration structure of the staff involved does not prejudice their ability to act in the consumer’s best interest and is not contingent on sales targets. in order to achieve that goal , member states may also ban commissions or any other specific forms of compensation , monetary or not , contingent on the number or proportion of or accepted applications for credit paid by the creditor to the credit intermediary.


### 1. member states shall promote measures that support the education of consumers in relation to responsible borrowing and debt management , in particular in relation to consumer credit agreements. clear and general information on the credit granting process shall be provided to consumers in order to guide them , in particular those who take out a consumer credit for the first time , and especially on digital tools. ### 1. member states shall promote measures that support the education of consumers in relation to responsible borrowing and debt management , in particular in relation to consumer credit agreements , and general knowledge about budget management. clear and general information on the credit granting process shall be provided to consumers in order to guide them , in particular those who take out a consumer credit for the first time , and especially on digital tools. these measures shall be taken in cooperation with consumer organisations , namely those who provide debt support services.


### member states shall ensure that debt advisory services are made available to consumers. ### member states shall ensure that qualitative debt advisory services are made available to consumers , free of charge , and that adequate support is provided to debt-advice structures , including when provided by consumer associations.


### member states shall ensure that creditors , credit intermediaries and providers of crowdfunding credit services that are not credit institutions as defined in article 4(1) , point (1) , of regulation (eu) no 575/2013 are subject to an adequate admission process and to registration and supervision arrangements set up by an independent competent authority. ### member states shall ensure that creditors , credit intermediaries and providers of crowdfunding credit services that are not credit institutions as defined in article 4(1) , point (1) , of regulation (eu) no 575/2013 are subject to an adequate admission process and to registration and supervision arrangements set up by an independent competent authority. the appropriate european level shall oversee the efficiency of the admission , registration and supervision of non-credit institutions on a regular basis.


### member states shall ensure that creditors , credit intermediaries and providers of crowdfunding credit services that are not credit institutions as defined in article 4(1) , point (1) , of regulation (eu) no 575/2013 are subject to an adequate admission process and to registration and supervision arrangements set up by an independent competent authority. ### member states shall ensure that creditors , credit intermediaries and providers of crowdfunding credit services that are not credit institutions as defined in article 4(1) , point (1) , of regulation (eu) no 575/2013 are subject to an adequate and proportionate admission process and to registration and supervision arrangements set up by an independent competent authority. this requirement shall not be applicable where the provision of the credit agreement is purely an ancillary service.


### 2. member states shall ensure that when penalties are to be imposed in accordance with article 21 of regulation (eu) 2017/2394 , they include the possibility either to impose fines through administrative procedures or to initiate legal proceedings for the imposition of fines , or both , the maximum amount of such fines being at least 4% of the creditor , the credit intermediary or the provider of crowdfunding credit services’ annual turnover in all member states concerned by the coordinated enforcement action. ### 2. member states shall ensure that when penalties are to be imposed in accordance with article 21 of regulation (eu) 2017/2394 , they include the possibility either to impose fines through administrative procedures or to initiate legal proceedings for the imposition of fines , or both , the maximum amount of such fines being at least 2% of the creditor , the credit intermediary or the provider of crowdfunding credit services’ annual turnover in all member states concerned by the coordinated enforcement action.


### 1. member states shall adopt and publish , by [op: please insert date - 24 months from the date the directive is adopted] at the latest , the laws , regulations and administrative provisions necessary to comply with this directive. they shall forthwith communicate to the commission the text of those provisions. they shall apply those measures from [op: please insert date - six months from the transposition deadline]. ### 1. member states shall adopt and publish , by [op: please insert date - 24 months from the date the directive is adopted] at the latest , the laws , regulations and administrative provisions necessary to comply with this directive. they shall forthwith communicate to the commission the text of those provisions. they shall apply those measures from [op: please insert date - twelve months from the transposition deadline].


### however , as regards relations , within the scope of this directive , between consumers and creditors or credit intermediaries or providers of crowdfunding credit services who qualify as micro , small and medium undertakings as referred to in article 3 of directive 2013/34/eu , member states shall apply those measures from [op: please insert date - 18 months from the transposition deadline]. ### however , as regards relations , within the scope of this directive , between consumers and creditors or credit intermediaries or providers of crowdfunding credit services who qualify as micro , small and medium undertakings as referred to in article 3 of directive 2013/34/eu , member states shall apply those measures from [op: please insert date - 24 months from the transposition deadline].


### (30) in order to be able to make their decisions in full knowledge of the facts , consumers should receive adequate information , for careful consideration at their own leisure and convenience , at least one day prior to the conclusion of the credit agreement or of the agreement for the provision of crowdfunding credit services , including information on the conditions and cost of the credit and on their obligations , as well as adequate explanations thereof. these rules should be without prejudice to council directive 93/13/eec29. ### (30) in order to be able to make their decisions in full knowledge of the facts , consumers should receive adequate information , for careful consideration at their own leisure and convenience , in due time prior to the conclusion of the credit agreement or of the agreement for the provision of crowdfunding credit services , including information on the conditions and cost of the credit and on their obligations , as well as adequate explanations thereof. these rules should be without prejudice to council directive 93/13/eec29.


### (39) despite the pre-contractual information to be provided , the consumer may still need additional assistance in order to decide which credit agreement or crowdfunding credit services , within the range of products proposed , are the most appropriate for his or her needs and financial situation. therefore , member states should ensure that creditors and , where applicable , credit intermediaries and providers of crowdfunding credit services provide such assistance in relation to the credit products which they offer to the consumer , by providing adequate explanations about the relevant information including in particular the essential characteristics of the products proposed to the consumer in a personalised manner so that the consumer can understand the effects which they may have on his or her economic situation. creditors and , where applicable , credit intermediaries and providers of crowdfunding credit services should adapt the way in which such explanations are given to the circumstances in which the credit is offered and the consumer’s need for assistance , taking into account the consumer’s knowledge and experience of credit and the nature of individual credit products. such explanations should not in itself constitute a personal recommendation. ### (39) despite the pre-contractual information to be provided , the consumer may still need additional assistance in order to decide which credit agreement or crowdfunding credit services , within the range of products proposed , are the most appropriate for his or her needs and financial situation. therefore , member states should ensure that creditors and , where applicable , credit intermediaries and providers of crowdfunding credit services provide such assistance in relation to the credit products which they offer to the consumer , by providing adequate explanations about the relevant information including in particular the essential characteristics of the products proposed to the consumer so that the consumer can understand the effects which they may have on his or her economic situation. creditors and , where applicable , credit intermediaries and providers of crowdfunding credit services should adapt the way in which such explanations are given to the circumstances in which the credit is offered and the consumer’s need for assistance , taking into account the consumer’s knowledge and experience of credit and the nature of individual credit products. such explanations should not in itself constitute a personal recommendation.


### (44) credit sales that have not been solicited by the consumers may in some cases be associated with practices that are harmful to the consumer. in this regard , unsolicited sale of credit , including non-requested pre-approved credit cards sent to the consumers , or the unilateral increase of a consumers’ overdraft or credit card limit , should be prohibited. ### (44) credit sales that have not been solicited by the consumers may in some cases be associated with practices that are harmful to the consumer. in this regard , unsolicited sale of credit , including non-requested pre-approved credit cards sent to the consumers , or the unilateral increase of a consumers’ overdraft or credit card limit , should be prohibited. this provision does not intend to prohibit general marketing activities though.


### (46) it is essential that the consumer’s ability and propensity to repay the credit is assessed and verified before a credit agreement or an agreement for the provision of crowdfunding credit services is concluded. that assessment of creditworthiness should be done in the interest of the consumer , to prevent irresponsible lending practices and over-indebtedness , and should take into consideration all necessary and relevant factors that could influence a consumer’s ability to repay the credit. member states should be able to issue additional guidance on additional criteria and methods to assess a consumer’s creditworthiness , for example by setting limits on loan-to-value or loan-to-income ratios. ### (46) it is essential that the consumer’s ability and propensity to repay the credit is assessed and verified before a credit agreement or an agreement for the provision of crowdfunding credit services is concluded. that assessment of creditworthiness should be done in the interest of the consumer , to prevent irresponsible lending practices and over-indebtedness , and should take into consideration all necessary and relevant factors that could influence a consumer’s ability to repay the credit.


### (46) it is essential that the consumer’s ability and propensity to repay the credit is assessed and verified before a credit agreement or an agreement for the provision of crowdfunding credit services is concluded. that assessment of creditworthiness should be done in the interest of the consumer , to prevent irresponsible lending practices and over-indebtedness , and should take into consideration all necessary and relevant factors that could influence a consumer’s ability to repay the credit. member states should be able to issue additional guidance on additional criteria and methods to assess a consumer’s creditworthiness , for example by setting limits on loan-to-value or loan-to-income ratios. ### (46) it is essential that the consumer’s ability and propensity to repay the credit is assessed and verified before a credit agreement or an agreement for the provision of crowdfunding credit services is concluded. that assessment of creditworthiness should be done in the interest of the consumer , to prevent irresponsible lending practices and over-indebtedness , and should take into consideration all necessary and relevant factors that could influence a consumer’s ability to repay the credit , as well as a consumer’s ability to afford the credit. member states should be able to issue additional guidance on additional criteria and methods to assess a consumer’s creditworthiness , for example by setting limits on loan-to-value or loan-to-income ratios.


### (47) the assessment of creditworthiness should be based on information on the financial and economic situation , including income and expenses , of the consumer. the european banking authority guidelines on loan origination and monitoring (eba/gl/2020/06) provide guidelines on what categories of data may be used for the processing of personal data for creditworthiness purposes , which include evidence of income or other sources of repayment , information on financial assets and liabilities , or information on other financial commitments. personal data , such as personal data found on social media platforms or health data , including cancer data , should not be used when conducting a creditworthiness assessment. consumers should provide information about their financial and economic situation in order to facilitate the creditworthiness assessment. in principle , credit should only made available to the consumer where the result of the creditworthiness assessment indicates that the obligations resulting from the credit agreement or the agreement for the provision of crowdfunding credit services are likely to be met in the manner required under that agreement. however , should such assessment be negative , the creditor or the provider of crowdfunding credit services can exceptionally make credit available in specific and justified circumstances such as when they have a long-standing relationship with the consumer , or in case of loans to fund exceptional healthcare expenses , students loans or loans for consumers with disabilities. in such case , when deciding on whether or not to make the credit available to the consumer , the creditor or the provider of crowdfunding credit services should take into account the amount and the purpose of the credit , and the likelihood that the obligations resulting from the agreement will be met. ### (47) the assessment of creditworthiness should be based on information on the financial and economic situation , including income and expenses , of the consumer. the european banking authority guidelines on loan origination and monitoring (eba/gl/2020/06) provide guidelines on what categories of data may be used for the processing of personal data for creditworthiness purposes , which include evidence of income or other sources of repayment , information on financial assets and liabilities , or information on other financial commitments. personal data , such as personal data found on social media platforms or health data , including cancer data , should not be used when conducting a creditworthiness assessment. consumers should provide information about their financial and economic situation in order to facilitate the creditworthiness assessment. in principle , credit should only made available to the consumer where the result of the creditworthiness assessment indicates that the obligations resulting from the credit agreement or the agreement for the provision of crowdfunding credit services are likely to be met in the manner required under that agreement. however , should such assessment be negative , member states may choose to provide an option in national law which allows the creditor or the provider of crowdfunding credit services to exceptionally make credit available in specific and justified circumstances such as when they have a long-standing relationship with the consumer , or in case of loans to fund exceptional healthcare expenses , students loans or loans for consumers with disabilities. in such case , when deciding on whether or not to make the credit available to the consumer , the creditor or the provider of crowdfunding credit services should take into account the amount and the purpose of the credit , and the likelihood that the obligations resulting from the agreement will be met. member states shall not be obliged to provide this option.


### (48) the proposal for a regulation laying down harmonised rules on artificial intelligence (artificial intelligence act) , establishes that ai systems used to evaluate the credit score or creditworthiness of natural persons should be classified as high-risk ai systems , since they determine those persons’ access to financial resources or essential services such as housing , electricity , and telecommunication services. in view of those high stakes , whenever the creditworthiness assessment involves automated processing , the consumer should have a right to obtain human intervention on the part of the creditor or providers of crowdfunding credit services. the consumer should also have the right to obtain a meaningful explanation of the assessment made and of the functioning of the automated processing used , including among others the main variables , the logic and risks involved , as well as a right to express his or her point of view and to contest the assessment of the creditworthiness and the decision. ### (48) the proposal for a regulation laying down harmonised rules on artificial intelligence (artificial intelligence act) , establishes that ai systems used to evaluate the credit score or creditworthiness of natural persons should be classified as high-risk ai systems , since they determine those persons’ access to financial resources or essential services such as housing , electricity , and telecommunication services. in view of those high stakes , whenever the creditworthiness assessment involves automated processing , the consumer should have a right to obtain human intervention on the part of the creditor or providers of crowdfunding credit services. the consumer should also have the right to obtain a meaningful explanation of the assessment made and of the functioning of the automated processing used , as well as a right to express his or her point of view and to contest the assessment of the creditworthiness and the decision.


### (49) to assess the credit status of a consumer , the creditor or the provider of crowdfunding credit services should also consult credit databases. the legal and actual circumstances may require that such consultations vary in scope. to prevent any distortion of competition among creditors or providers of crowdfunding credit services , they should have access to private or public credit databases concerning consumers in a member state where they are not established under non-discriminatory conditions compared with creditors or providers of crowdfunding credit services established in that member state. member states should facilitate the cross-border access to private or public databases , in compliance with the regulation (eu) 2016/679 of the european parliament and of the council33. to enhance reciprocity , credit databases should as a minimum hold information on consumers’ arrears in payment , in accordance with union and national law. ### (49) to assess the credit status of a consumer , the creditor or the provider of crowdfunding credit services may also consult credit databases. the legal and actual circumstances may require that such consultations vary in scope. to prevent any distortion of competition among creditors or providers of crowdfunding credit services , they should have access to private or public credit databases concerning consumers in a member state where they are not established under non-discriminatory conditions compared with creditors or providers of crowdfunding credit services established in that member state. member states should facilitate the cross-border access to private or public databases , in compliance with the regulation (eu) 2016/679 of the european parliament and of the council33. to enhance reciprocity , credit databases should as a minimum hold information on consumers’ arrears in payment , in accordance with union and national law.


### (54) in order to ensure full transparency , the consumer should be provided with information concerning the borrowing rate , both at a pre-contractual stage and when the credit agreement or the agreement for the provision of crowdfunding credit services is concluded. during the contractual relationship , the consumer should further be informed of changes to the variable borrowing rate and changes to the payments caused thereby. this is without prejudice to provisions of national law not related to consumer information which lay down conditions for , or prescribe the consequences of , changes , other than changes concerning payments , in borrowing rates and other economic conditions governing the credit , for instance rules providing that the creditor or the provider of crowdfunding credit services may change the borrowing rate only where there is a valid reason for such change or that the consumer may terminate the contract should there be a change in the borrowing rate or in other specific economic condition concerning the credit. ### (54) in order to ensure full transparency , the consumer should be provided with information concerning the borrowing rate , both at a pre-contractual stage and when the credit agreement or the agreement for the provision of crowdfunding credit services is concluded. during the contractual relationship , the consumer should further be informed of changes to the variable borrowing rate and changes to the payments caused thereby at least seven days in advance. this is without prejudice to provisions of national law not related to consumer information which lay down conditions for , or prescribe the consequences of , changes , other than changes concerning payments , in borrowing rates and other economic conditions governing the credit , for instance rules providing that the creditor or the provider of crowdfunding credit services may change the borrowing rate only where there is a valid reason for such change or that the consumer may terminate the contract should there be a change in the borrowing rate or in other specific economic condition concerning the credit.


### (58) in some cases , national law already provides that funds cannot be made available to the consumer before the expiry of a specific deadline. in those cases , consumers may wish to ensure that they receive the goods or services purchased early. therefore , in the case of linked credit agreements , member states should have the possibility to exceptionally provide that , if the consumer explicitly wishes early receipt of the purchased goods or services , the deadline for the exercise of the right of withdrawal could be reduced so that it is the same as the deadline before which funds cannot be made available. ### (58) in some cases , national law already provides that funds cannot be made available to the consumer before the expiry of a specific deadline. in those cases , consumers may wish to ensure that they receive the goods or services purchased early. therefore , in the case of linked credit agreements , member states should have the possibility to exceptionally provide that , if the consumer explicitly wishes early receipt of the purchased goods or services , the deadline for the exercise of the right of withdrawal could be reduced so that it is the same as the deadline before which funds cannot be made available. in order to ensure the effectiveness of the right of withdrawal , goods or services which form part of a linked credit agreement should not be delivered before a cooling-off period of 48 hours after the conclusion of the contract.


### (63) member states should have the right to provide that compensation for early repayment may be claimed by the creditor only on condition that the amount repaid over a 12-month period exceeds a threshold defined by member states. when fixing that threshold , which should not exceed eur 10 000 , member states should take into account the average amount of consumer credits in their market. ### deleted


### (65) the fixing of caps on interest rates , on annual percentage rates of charge and or the total cost of the credit to the consumer is a common practice in a number of member states. such capping has proved beneficial for consumers. in that context , member states should be able to maintain their current legal regime. however , in an effort to increase consumer protection without imposing unnecessary limits on member states , caps on interest rates , on annual percentage rates of charge and or on the total cost of the credit to the consumer should be introduced throughout the union. ### deleted


### (72) consumers facing difficulties to meet their financial commitments stand to benefit from specialised help on managing their debts. the objective of debt advisory services is to help consumers facing financial problems and guide them to repay , as far as possible , their outstanding debts , while maintaining a decent level of life and preserving their dignity. this personalised and independent assistance provided by professional operators which are not creditors , credit intermediaries , providers of crowdfunding credit services or credit servicers , may include legal counselling , money and debt management as well as social and psychological assistance. member states should ensure that debt advisory services provided by independent professional operators are made available , directly or indirectly , to consumers , and that where possible , consumers facing difficulties to repay their debts are referred to debt advisory services before that enforcement proceedings are initiated. member states remain free to maintain or introduce specific requirements for such services. ### (72) consumers facing difficulties to meet their financial commitments stand to benefit from specialised help on managing their debts. the objective of debt advisory services is to help consumers facing financial problems and guide them to repay , as far as possible , their outstanding debts , while maintaining a decent level of life and preserving their dignity. this personalised and independent assistance provided by professional operators which are not creditors , credit intermediaries , providers of crowdfunding credit services or credit servicers , may include legal counselling , money and debt management as well as social and psychological assistance. member states should ensure that qualitative debt advisory services provided by independent professional operators are made available , directly or indirectly , to consumers free of charge , and that consumers facing difficulties to repay their debts are referred to debt advisory services before that enforcement proceedings are initiated. member states remain free to maintain or introduce specific requirements for such services.


### (76) assignment of the creditor's rights under a credit agreement or an agreement for the provision of crowdfunding credit services should not have the effect of placing the consumer in a less favourable position. the consumer should also be properly informed when the credit agreement or the agreement for the provision of crowdfunding credit services is assigned to a third party. however , where the initial creditor , in agreement with the assignee , continues to service the credit vis-à-vis the consumer , the consumer has no significant interest in being informed of the assignment. therefore , a requirement at union level that the consumer be informed of the assignment in such cases would be excessive. ### (76) assignment of the creditor's rights under a credit agreement or an agreement for the provision of crowdfunding credit services should not have the effect of placing the consumer in a less favourable position. creditors should not be able to transfer credit contracts which can no longer be enforced or have no proven legal basis. the consumer should also be properly informed via a standard notification form no later than 48 hours after the conclusion of the contract formalising the assignment to a third party. the consumer should also be properly informed when the credit agreement or the agreement for the provision of crowdfunding credit services is assigned to a third party. however , where the initial creditor , in agreement with the assignee , continues to service the credit vis-à-vis the consumer , the consumer has no significant interest in being informed of the assignment. therefore , a requirement at union level that the consumer be informed of the assignment in such cases would be excessive.


### (81) current national rules on penalties differ significantly across the union. in particular , not all member states ensure that effective , proportionate and dissuasive fines can be imposed on traders responsible for widespread infringements or widespread infringements with a union dimension. to ensure that member states’ authorities can impose effective , proportionate and dissuasive penalties in relation to widespread infringements and to widespread infringements with a union dimension that are subject to coordinated investigation and enforcement measures in accordance with regulation (eu) 2017/2394 of the european parliament and of the council36 , fines should be introduced as an element of penalties for such infringements. in order to ensure that the fines have a deterrent effect , member states should set in their national law the maximum fine for such infringements at a level that is at least 4 % of the creditor , credit intermediary or provider of crowdfunding credit services’ annual turnover in the member state or member states concerned. in certain cases , those traders can also be a group of companies. ### (81) current national rules on penalties differ significantly across the union. in particular , not all member states ensure that effective , proportionate and dissuasive fines can be imposed on traders responsible for infringements. to ensure that member states’ authorities can impose effective , proportionate and dissuasive penalties in relation to infringements , fines should be introduced as an element of penalties. in order to ensure that the fines have a deterrent effect , member states should set in their national law the maximum fine for infringements at a level that is at least 4 % of the creditor , credit intermediary or provider of crowdfunding credit services’ annual turnover in the member state or member states concerned. in certain cases , those traders can also be a group of companies.


### 1. this directive applies to credit agreements. ### 1. this directive applies to credit agreements above 200 euros in value.


### credit agreements involving a total amount of credit of more than eur 100 000; ### credit agreements involving a total amount of credit of less than eur 200 or more than eur 100 000;


### (3) ‘credit agreement’ means an agreement whereby a creditor grants or promises to grant to a consumer credit in the form of a deferred payment , loan or other similar financial accommodation , except for agreements for the provision on a continuing basis of services or for the supply of goods of the same kind , where the consumer pays for such services or goods for the duration of their provision by means of instalments; ### (3) ‘credit agreement’ means an agreement whereby a creditor grants or promises to grant to a consumer credit in the form of a deferred payment , loan or other similar financial accommodation , except for:


### (22) ‘early repayment’ means the full or partial discharge of the consumer’s obligations under a credit agreement or crowdfunding credit services; ### (22) ‘early repayment’ means the full or partial discharge of the consumer’s obligations under a credit agreement or crowdfunding credit services before the date for the payment agreed in the credit agreement;


### 1. member states shall ensure that clear and comprehensible general information about credit agreements or crowdfunding credit services is made available to consumers by creditors or , where applicable , by credit intermediaries or providers of crowdfunding credit services , at all times on paper or on another durable medium. ### 1. member states shall ensure that clear and comprehensible general information about credit agreements or crowdfunding credit services is made available to consumers by creditors or , where applicable , by credit intermediaries or providers of crowdfunding credit services , at all times on paper or on another durable medium or in electronic form upon request of the consumer.


### 1. member states shall ensure that clear and comprehensible general information about credit agreements or crowdfunding credit services is made available to consumers by creditors or , where applicable , by credit intermediaries or providers of crowdfunding credit services , at all times on paper or on another durable medium. ### 1. member states shall ensure that clear and comprehensible general information about credit agreements or crowdfunding credit services is made available to consumers by creditors or , where applicable , by credit intermediaries or providers of crowdfunding credit services , at all times either on paper , electronically or on another durable medium.


### 1. member states shall require that the creditor and , where applicable , the credit intermediary or the provider of crowdfunding credit services provide the consumer with the pre-contractual information needed to compare different offers in order to take an informed decision on whether to conclude a credit agreement or crowdfunding credit services on the basis of the credit terms and conditions offered by the creditor or by the provider of crowdfunding credit services and , where applicable , the preferences expressed and information supplied by the consumer. such pre-contractual information shall be provided to the consumer at least one day before he or she is bound by any credit agreement or offer , or by any agreement or offer for the provision of crowdfunding credit services. ### 1. member states shall require that the creditor and , where applicable , the credit intermediary or the provider of crowdfunding credit services provide the consumer with the pre-contractual information needed to compare different offers in order to take an informed decision on whether to conclude a credit agreement or crowdfunding credit services on the basis of the credit terms and conditions offered by the creditor or by the provider of crowdfunding credit services and , where applicable , the preferences expressed and information supplied by the consumer.


### in case the pre-contractual information referred to in the first subparagraph is provided less than one day before the consumer is bound by the credit agreement or offer , or by any agreement or offer for the provision of crowdfunding credit services , member states shall require that the creditor and , where applicable , the credit intermediary or the provider of crowdfunding credit services send a reminder , on paper or on another durable medium , to the consumer of the possibility to withdraw from the credit agreement or crowdfunding credit services and of the procedure to follow for withdrawing , in accordance with article 26. that reminder shall be provided to the consumer , at the latest , one day after the conclusion of the credit agreement , of the agreement for the provision of crowdfunding credit services , or the acceptance of the credit offer. ### deleted


### 2. the pre-contractual information referred to in paragraph 1 shall be provided on paper or on another durable medium by means of the standard european consumer credit information form set out in annex i. all the information provided in the form shall be equally prominent. the creditor shall be deemed to have fulfilled the information requirements in this paragraph and in article 3 , paragraphs (1) and (2) of directive 2002/65/ec if he or she has supplied the standard european consumer credit information. ### 2. the pre-contractual information referred to in paragraph 1 shall be provided on durable medium (digitally by default , paper on request of the consumer or creditor) by means of the standard european consumer credit information form set out in annex i. all the information provided in the form shall be equally prominent. the creditor shall be deemed to have fulfilled the information requirements in this paragraph and in article 3 , paragraphs (1) and (2) of directive 2002/65/ec if he or she has supplied the standard european consumer credit information.


### 2. the pre-contractual information referred to in paragraph 1 shall be provided on paper or on another durable medium by means of the standard european consumer credit information form set out in annex i. all the information provided in the form shall be equally prominent. the creditor shall be deemed to have fulfilled the information requirements in this paragraph and in article 3 , paragraphs (1) and (2) of directive 2002/65/ec if he or she has supplied the standard european consumer credit information. ### 2. the pre-contractual information referred to in paragraph 1 shall be provided on paper or on another durable medium , or in electronic form upon request of the consumer , by means of the standard european consumer credit information form set out in annex i. all the information provided in the form shall be equally prominent. the creditor shall be deemed to have fulfilled the information requirements in this paragraph and in article 3 , paragraphs (1) and (2) of directive 2002/65/ec if he or she has supplied the standard european consumer credit information.


### the right of early repayment , and , where applicable , information concerning the creditor's right to compensation and the way in which that compensation will be determined; ### the right of early repayment , and , where applicable , information concerning the creditor's right to compensation and the way in which that compensation will be determined in accordance with article 29;


### 4. at the same time as the standard european consumer credit information form is provided to the consumer , the creditor and , where applicable , the credit intermediary or the provider of crowdfunding credit services , shall provide the consumer with the standard european consumer credit overview form set out in annex ii , containing the following pre-contractual information: ### deleted


### 5. information displayed in the standard european consumer credit information form and in the standard european consumer credit overview form shall be consistent. it shall be clearly legible and take into account the technical constraints of the medium on which it is displayed. information shall be displayed in an adequate and suitable way on the different channels. ### deleted


### 7. if the agreement has been concluded at the consumer's request using a means of distance communication which does not enable the information to be provided in accordance with this article , the creditor and , where applicable , the credit intermediary or the provider of crowdfunding credit services shall provide the consumer with the standard european consumer credit information form and the standard european consumer credit overview form immediately after the conclusion of the credit agreement or of the agreement for the provision of crowdfunding credit services. ### 7. if the agreement has been concluded at the consumer's request using a means of distance communication which does not enable the information to be provided in accordance with this article , the creditor and , where applicable , the credit intermediary or the provider of crowdfunding credit services shall provide the consumer with the standard european consumer credit information form immediately after the conclusion of the credit agreement or of the agreement for the provision of crowdfunding credit services.


### 8. upon request from the consumer , the creditor and , where applicable , the credit intermediary or the provider of crowdfunding credit services shall , in addition to the standard european consumer credit information form and the standard european consumer credit overview form , provide the consumer free of charge with a copy of the draft credit agreement , or of the draft agreement for the provision of crowdfunding credit services , provided that the creditor at the time of the request is willing to proceed to the conclusion of the credit agreement or of the agreement for the provision of crowdfunding credit services with the consumer. ### 8. upon request from the consumer , the creditor and , where applicable , the credit intermediary or the provider of crowdfunding credit services shall , in addition to the standard european consumer credit information form , provide the consumer free of charge with a copy of the draft credit agreement , or of the draft agreement for the provision of crowdfunding credit services , provided that the creditor at the time of the request is willing to proceed to the conclusion of the credit agreement or of the agreement for the provision of crowdfunding credit services with the consumer.


### 4. member states may prohibit the use of the terms ‘advice’ and ‘advisor’ or similar terms when the advisory services are being marketed and provided to consumers by creditors or , where applicable , credit intermediaries or providers of crowdfunding credit services. ### 4. member states shall prohibit the use of the terms ‘advice’ and ‘advisor’ or similar terms when the advisory services are being marketed and provided to consumers by creditors or providers of crowdfunding credit services.


### where member states do not prohibit the use of the terms ‘advice’ and ‘advisor’ or similar terms , they shall impose the following conditions on the use of the term ‘independent advice’ or ‘independent advisor’ by creditors , credit intermediaries or providers of crowdfunding credit services providing advisory services: ### member states shall impose the following conditions on the use of the term ‘independent advice’ or ‘independent advisor’ by credit intermediaries providing advisory services:


### creditors and , where applicable , credit intermediaries or providers of crowdfunding credit services shall consider a sufficiently large number of credit agreements or crowdfunding credit services available on the market; ### credit intermediaries shall consider a sufficiently large number of credit agreements or crowdfunding credit services available on the market;


### point (b) of the second subparagraph shall apply only where the number of creditors considered is less than a majority of the market. ### deleted


### member states may impose more stringent requirements for the use of the terms ‘independent advice’ or ‘independent advisor’ by creditors and , where applicable , credit intermediaries or providers of crowdfunding credit services. ### member states may impose more stringent requirements for the provision of advisory services by creditors and , where applicable , credit intermediaries or providers of crowdfunding credit services.


### (8) the principles of data minimisation and data protection by design and by default are essential when processing involves significant risks to the fundamental rights of individuals. taking into account the state of the art , all parties to data sharing , including where within scope of this regulation , should implement technical and organisational measures to protect these rights. such measures include not only pseudonymisation and encryption , but also the use of increasingly available technology that permits algorithms to be brought to the data and allow valuable insights to be derived without the transmission between parties or unnecessary copying of the raw or structured data themselves. ### (8) all principles of regulation (eu) 2016/679 and in particular the principles of data minimisation and data protection by design and by default are essential when processing involves significant risks to the fundamental rights of individuals. taking into account the state of the art , all parties to data sharing , including where within scope of this regulation , should implement suitable and specific technical and organisational measures to safeguard these rights and the interests of the data subject. such measures could consist of technical limitations on the re-use and use of state-of-the-art security and privacy-preserving measures. these privacy-preserving measures should include not only pseudonymisation and encryption , but when feasible also the use of anonymisation and increasingly available technology that permits algorithms to be brought to the data and allow valuable insights to be derived without the transmission between parties or unnecessary copying of the raw or structured data themselves.


### (14) physical products that obtain , generate or collect , by means of their components , data concerning their performance , use or environment and that are able to communicate that data via a publicly available electronic communications service (often referred to as the internet of things) should be covered by this regulation. electronic communications services include land-based telephone networks , television cable networks , satellite-based networks and near-field communication networks. such products may include vehicles , home equipment and consumer goods , medical and health devices or agricultural and industrial machinery. the data represent the digitalisation of user actions and events and should accordingly be accessible to the user , while information derived or inferred from this data , where lawfully held , should not be considered within scope of this regulation. such data are potentially valuable to the user and support innovation and the development of digital and other services protecting the environment , health and the circular economy , in particular though facilitating the maintenance and repair of the products in question. ### (14) physical products that obtain , generate or collect , by means of their components or embedded software , data concerning their performance , use or environment and that are able to communicate that data via a publicly available electronic communications service (often referred to as the internet of things) should be covered by this regulation. electronic communications services include land-based telephone networks , television cable networks , satellite-based networks and near-field communication networks. such products may include vehicles , home equipment and consumer goods , medical and health devices or agricultural and industrial machinery. the data represent the digitalisation of user actions and events and should accordingly be accessible to the user , while information derived or inferred from this data , where lawfully held , should not be considered within scope of this regulation. such data are potentially valuable to the user and support innovation and the development of digital and other services protecting the environment , health and the circular economy , in particular though facilitating the maintenance and repair of the products in question.


### (14) physical products that obtain , generate or collect , by means of their components , data concerning their performance , use or environment and that are able to communicate that data via a publicly available electronic communications service (often referred to as the internet of things) should be covered by this regulation. electronic communications services include land-based telephone networks , television cable networks , satellite-based networks and near-field communication networks. such products may include vehicles , home equipment and consumer goods , medical and health devices or agricultural and industrial machinery. the data represent the digitalisation of user actions and events and should accordingly be accessible to the user , while information derived or inferred from this data , where lawfully held , should not be considered within scope of this regulation. such data are potentially valuable to the user and support innovation and the development of digital and other services protecting the environment , health and the circular economy , in particular though facilitating the maintenance and repair of the products in question. ### (14) physical products that obtain , generate or collect , by means of their components , data concerning their performance , use or environment and that are able to communicate that data via a publicly available electronic communications service (often referred to as the internet of things) should be covered by this regulation with the exception of prototypes. electronic communications services include land-based telephone networks , television cable networks , satellite-based networks and near-field communication networks. such products may include vehicles , home equipment and consumer goods , medical and health devices or agricultural and industrial machinery. the data represent the digitalisation of user actions and events and should accordingly be accessible to the user , while information derived or inferred from this data , where lawfully held , should not be considered within scope of this regulation. such data are potentially valuable to the user and support innovation and the development of digital and other services protecting the environment , health and the circular economy , in particular though facilitating the maintenance and repair of the products in question. information derived or inferred from this data , where lawfully held , should not be considered within scope of this regulation , nor any data that is subject to an intellectual property right , except on the basis of a data sharing agreement. products design-related data , meaning data related to the internal functioning and design of the product can expose industry’s core know-how and intellectual property. such data should therefore be excluded from the scope of the regulation. data that is constitutive of a trade secret should only be made available to a data user or third party upon prior consent of the trade secret holder and if all the necessary measures to protect the confidentiality of the trade secrets have been taken by the third party.


### (14) physical products that obtain , generate or collect , by means of their components , data concerning their performance , use or environment and that are able to communicate that data via a publicly available electronic communications service (often referred to as the internet of things) should be covered by this regulation. electronic communications services include land-based telephone networks , television cable networks , satellite-based networks and near-field communication networks. such products may include vehicles , home equipment and consumer goods , medical and health devices or agricultural and industrial machinery. the data represent the digitalisation of user actions and events and should accordingly be accessible to the user , while information derived or inferred from this data , where lawfully held , should not be considered within scope of this regulation. such data are potentially valuable to the user and support innovation and the development of digital and other services protecting the environment , health and the circular economy , in particular though facilitating the maintenance and repair of the products in question. ### (14) the data represent the digitalisation of user actions and events and should accordingly be accessible to the user , while information derived or inferred from this data , where lawfully held , should not be considered within scope of this regulation. in scope are data in raw form (also known as source or primary data , which refers to data points that are automatically generated without any form of processing) as well as prepared data (data cleaned and transformed for the purpose of making it useable prior to further processing and analysis). the term ‘prepared data’ should be interpreted broadly , without however reaching the stage of deriving or inferring insights. prepared data may include data enriched with metadata , combined with other data (e.g. sorted and classified with other data points relating to it) or re-formatted into a commonly-used format. such data are potentially valuable to the user and support innovation and the development of digital and other services protecting the environment , health and the circular economy , in particular though facilitating the maintenance and repair of the products in question. by contrast , information derived or inferred from this data , where lawfully held , should not be considered within scope of this regulation. such data is not generated by the use of the product , but is the outcome of a characterisation , assessment , recommendation , categorisation or similar systematic processes that assign values or insights to a user or product. data that is constitutive of a trade secret should only be made available to a data user or third party if all the necessary measures to protect the confidentiality of the trade secrets have been taken by the third party.


### (15) in contrast , certain products that are primarily designed to display or play content , or to record and transmit content , amongst others for the use by an online service should not be covered by this regulation. such products include , for example , personal computers , servers , tablets and smart phones , cameras , webcams , sound recording systems and text scanners. they require human input to produce various forms of content , such as text documents , sound files , video files , games , digital maps. ### (15) in contrast , certain products that are primarily designed to display or play content , or to record and transmit content , amongst others for the use by an online service should not be covered by this regulation. such products include , for example , personal computers , servers , tablets and smart phones , cameras , webcams , sound recording systems and text scanners. they require human input to produce various forms of content , such as text documents , sound files , video files , games , digital maps. likewise defence related products as defined in article 3(1) of directive 2009/43 should not be covered by this regulation.


### (17) data generated by the use of a product or related service include data recorded intentionally by the user. such data include also data generated as a by-product of the user’s action , such as diagnostics data , and without any action by the user , such as when the product is in ‘standby mode’ , and data recorded during periods when the product is switched off. such data should include data in the form and format in which they are generated by the product , but not pertain to data resulting from any software process that calculates derivative data from such data as such software process may be subject to intellectual property rights. ### (17) data generated by the use of a product or related service include data recorded intentionally by the user. such data include also data generated as a by-product of the user’s action , such as diagnostics data , sensor-generated data or data captured by embedded applications , and data recorded by a device without any action by the user , such as when the product is in ‘standby mode’ , and data recorded during periods when the product is switched off. such data should include data in the form and format in which they are generated by the product , but not pertain to data resulting from any software process that calculates derivative data from such data as such software process may be subject to intellectual property rights.


### (17) data generated by the use of a product or related service include data recorded intentionally by the user. such data include also data generated as a by-product of the user’s action , such as diagnostics data , and without any action by the user , such as when the product is in ‘standby mode’ , and data recorded during periods when the product is switched off. such data should include data in the form and format in which they are generated by the product , but not pertain to data resulting from any software process that calculates derivative data from such data as such software process may be subject to intellectual property rights. ### (17) data generated by the use of a product or related service include data recorded intentionally by the user. such data include also data generated as a by-product of the user’s action , such as diagnostics data , and without any action by the user , such as when the product is in ‘standby mode’ , and data recorded during periods when the product is switched off. such data should include data that is already accessible to the data holder in the form and format in which they are generated by the product , but not pertain to data resulting from any software process that calculates derivative data from such data as such software process may be subject to intellectual property rights. products design-related data is excluded from scope of this regulation.


### (17) data generated by the use of a product or related service include data recorded intentionally by the user. such data include also data generated as a by-product of the user’s action , such as diagnostics data , and without any action by the user , such as when the product is in ‘standby mode’ , and data recorded during periods when the product is switched off. such data should include data in the form and format in which they are generated by the product , but not pertain to data resulting from any software process that calculates derivative data from such data as such software process may be subject to intellectual property rights. ### (17) data generated by the use of a product or related service include data recorded intentionally by the user. such data include also data generated as a by-product of the user’s action , such as diagnostics data , and without any action by the user , such as when the product is in ‘standby mode’ , and data recorded during periods when the product is switched off. such data should include data accessible to the data holder in the form and format in which they are generated by the product , but not pertain to data resulting from any software process that calculates derivative data from such data as such software process may be subject to intellectual property rights.


### (21) products may be designed to make certain data directly available from an on-device data storage or from a remote server to which the data are communicated. access to the on-device data storage may be enabled via cable-based or wireless local area networks connected to a publicly available electronic communications service or a mobile network. the server may be the manufacturer’s own local server capacity or that of a third party or a cloud service provider who functions as data holder. they may be designed to permit the user or a third party to process the data on the product or on a computing instance of the manufacturer. ### (21) products may be designed to make certain data directly available from an on-device data storage or from a remote server to which the data are communicated. access to the on-device data storage may be enabled via cable-based or wireless local area networks connected to a publicly available electronic communications service or a mobile network. the server may be the manufacturer’s own local server capacity or that of a third party or a cloud service provider who functions as data holder. data processors as defined in regulation (eu) 2016/679 are by default not considered to act as data holders , unless specifically tasked by the data. they may be designed to permit the user or a third party to process the data on the product or on a computing instance of the manufacturer.


### (21) products may be designed to make certain data directly available from an on-device data storage or from a remote server to which the data are communicated. access to the on-device data storage may be enabled via cable-based or wireless local area networks connected to a publicly available electronic communications service or a mobile network. the server may be the manufacturer’s own local server capacity or that of a third party or a cloud service provider who functions as data holder. they may be designed to permit the user or a third party to process the data on the product or on a computing instance of the manufacturer. ### (21) products may be designed to make certain data directly available from an on-device data storage or from a remote server to which the data are communicated. where technically possible , the manufacturer shall make this data also accessible to third-party service providers nominated by the user , or by a party acting on behalf or a user. access to the on-device data storage may be enabled via cable-based or wireless local area networks connected to a publicly available electronic communications service or a mobile network. the server may be the manufacturer’s own local server capacity or that of a third party or a cloud service provider who functions as data holder. they may be designed to permit the user or a third party to process the data on the product or on a computing instance of the manufacturer.


### (22) virtual assistants play an increasing role in digitising consumer environments and serve as an easy-to-use interface to play content , obtain information , or activate physical objects connected to the internet of things. virtual assistants can act as a single gateway in , for example , a smart home environment and record significant amounts of relevant data on how users interact with products connected to the internet of things , including those manufactured by other parties and can replace the use of manufacturer-provided interfaces such as touchscreens or smart phone apps. the user may wish to make available such data with third party manufacturers and enable novel smart home services. such virtual assistants should be covered by the data access right provided for in this regulation also regarding data recorded before the virtual assistant’s activation by the wake word and data generated when a user interacts with a product via a virtual assistant provided by an entity other than the manufacturer of the product. however , only the data stemming from the interaction between the user and product through the virtual assistant falls within the scope of this regulation. data produced by the virtual assistant unrelated to the use of a product is not the object of this regulation. ### (22) virtual assistants play an increasing role in digitising consumer environments and serve as an easy-to-use interface to play content , obtain information , or activate products including physical objects connected to the internet of things. virtual assistants can act as a single gateway in , for example , a smart home environment and record significant amounts of relevant data on how users interact with products connected to the internet of things , including those manufactured by other parties and can replace the use of manufacturer-provided interfaces such as touchscreens or smart phone apps. the user may wish to make available such data with third party manufacturers and enable novel smart home services. such virtual assistants should be covered by the data access right provided for in this regulation also regarding data recorded before the virtual assistant’s activation by the wake word and data generated when a user interacts with a product via a virtual assistant provided by an entity other than the manufacturer of the product if such data are collected. however , only the data stemming from the interaction between the user and product through the virtual assistant falls within the scope of this regulation. data produced by the virtual assistant unrelated to the use of a product is not the object of this regulation.


### (23) before concluding a contract for the purchase , rent , or lease of a product or the provision of a related service , clear and sufficient information should be provided to the user on how the data generated may be accessed. this obligation provides transparency over the data generated and enhances the easy access for the user. this obligation to provide information does not affect the obligation for the controller to provide information to the data subject pursuant to article 12 , 13 and 14 of regulation 2016/679. ### (23) before concluding a contract for the purchase , rent , or lease of a product or the provision of a related service , clear and sufficient information should be provided to the user on how the data generated may be accessed. this obligation provides transparency over the data generated and enhances the easy access for the user. this obligation to provide information does not affect the obligation for the controller to provide information to the data subject pursuant to article 12 , 13 and 14 of regulation 2016/679. the data holder cannot be expected to store the data indefinitely in view of the needs of the user of the product , but should however implement a reasonable data retention policy that allows for the effective application of the data access rights under this regulation


### (24) this regulation imposes the obligation on data holders to make data available in certain circumstances. insofar as personal data are processed , the data holder should be a controller under regulation (eu) 2016/679. where users are data subjects , data holders should be obliged to provide them access to their data and to make the data available to third parties of the user’s choice in accordance with this regulation. however , this regulation does not create a legal basis under regulation (eu) 2016/679 for the data holder to provide access to personal data or make it available to a third party when requested by a user that is not a data subject and should not be understood as conferring any new right on the data holder to use data generated by the use of a product or related service. this applies in particular where the manufacturer is the data holder. in that case , the basis for the manufacturer to use non-personal data should be a contractual agreement between the manufacturer and the user. this agreement may be part of the sale , rent or lease agreement relating to the product. any contractual term in the agreement stipulating that the data holder may use the data generated by the user of a product or related service should be transparent to the user , including as regards the purpose for which the data holder intends to use the data. this regulation should not prevent contractual conditions , whose effect is to exclude or limit the use of the data , or certain categories thereof , by the data holder. this regulation should also not prevent sector-specific regulatory requirements under union law , or national law compatible with union law , which would exclude or limit the use of certain such data by the data holder on well-defined public policy grounds. ### (24) this regulation imposes the obligation on data holders to make data available in certain circumstances. insofar as personal data are processed , the data holder should be a controller under regulation (eu) 2016/679. where users are data subjects , data holders should be obliged to provide them access to their data and to make the data available to third parties of the user’s choice in accordance with this regulation. furthermore , this regulation does create a legal basis under regulation (eu) 2016/679 for the data holder to provide access to personal data or make it available to a third party when requested by a user that is not a data subject , if the data holder , user and , where applicable , data recipient provides for suitable and specific measures to safeguard the fundamental rights and the interests of the data subject. this applies in particular where the manufacturer is the data holder. this regulation should not prevent contractual conditions , whose effect is to exclude or limit the use of the data , or certain categories thereof , by the data holder. this regulation should also not prevent sector-specific regulatory requirements under union law , or national law compatible with union law , which would exclude or limit the use of certain such data by the data holder on well-defined public policy grounds.


### (24) this regulation imposes the obligation on data holders to make data available in certain circumstances. insofar as personal data are processed , the data holder should be a controller under regulation (eu) 2016/679. where users are data subjects , data holders should be obliged to provide them access to their data and to make the data available to third parties of the user’s choice in accordance with this regulation. however , this regulation does not create a legal basis under regulation (eu) 2016/679 for the data holder to provide access to personal data or make it available to a third party when requested by a user that is not a data subject and should not be understood as conferring any new right on the data holder to use data generated by the use of a product or related service. this applies in particular where the manufacturer is the data holder. in that case , the basis for the manufacturer to use non-personal data should be a contractual agreement between the manufacturer and the user. this agreement may be part of the sale , rent or lease agreement relating to the product. any contractual term in the agreement stipulating that the data holder may use the data generated by the user of a product or related service should be transparent to the user , including as regards the purpose for which the data holder intends to use the data. this regulation should not prevent contractual conditions , whose effect is to exclude or limit the use of the data , or certain categories thereof , by the data holder. this regulation should also not prevent sector-specific regulatory requirements under union law , or national law compatible with union law , which would exclude or limit the use of certain such data by the data holder on well-defined public policy grounds. ### (24) this regulation imposes the obligation on data holders to make data available in certain circumstances. insofar as personal data are processed , the data holder should be a controller under regulation (eu) 2016/679. where users are data subjects , data holders should be obliged to provide them access to their data and to make the data available to third parties of the user’s choice in accordance with this regulation. however , this regulation does not create a legal basis under regulation (eu) 2016/679 for the data holder to provide access to personal data or make it available to a third party when requested by a user that is not a data subject and should not be understood as conferring any new right on the data holder to use data generated by the use of a product or related service. this applies in particular where the manufacturer is the data holder. in that case , the basis for the manufacturer to use non-personal data should be a contractual agreement between the manufacturer and the user. this agreement may be part of the sale , rent or lease agreement relating to the product. any contractual term in the agreement stipulating that the data holder may use the data generated by the user of a product or related service should be transparent to the user , including as regards the purpose for which the data holder intends to use the data. this regulation should not prevent contractual conditions , whose effect is to exclude or limit the use of the data , or certain categories thereof , by the data holder , whenever that is justified , in line with the principle of good faith , in light of the legitimate interests of the user that would otherwise be disproportionately harmed. this regulation should also not prevent sector-specific regulatory requirements under union law , or national law compatible with union law , which would exclude or limit the use of certain such data by the data holder on well-defined public policy grounds.