No C 183/4 Official Journal of the European Communities 10.7.84 
II 
(Preparatory Acts) 
COMMISSION 
Amendments to the proposal for a Council Directive relating to the approximation of the 
laws, regulations and administrative provisions of the Member States concerning 
consumer credit (') 
COM(84) 342 final 
(Submitted by the Commission to the Council pursuant to Article 149 (2) of the EEC Treaty 
on 22 June 1984) 
(84/C 183/05) 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
THE COUNCIL OF THE EUROPEAN 
COMMUNITIES, 
Having regard to the Treaty establishing the 
European Economic Community, and in particular 
Article 100 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European 
Parliament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas wide differences exist between the laws in 
force in the Member States of the European 
Community in matters of consumer credit; 
Whereas these differences in the national legal 
provisions are liable to jeopardize the establishment 
of a system which ensures that competition between 
creditors is not distorted in the common market; 
Whereas these differences lead to disparities in the 
degree of consumer protection in the various Member 
States, limit the opportunities the consumer has to 
obtain credit in another Member State, affect the 
volume and the nature of the credit sought, and also 
the purchase of goods and services; 
Whereas, in consequence, these differences have an 
influence on the free movement of goods and services 
obtained on credit and thus hinder the harmonious THE COUNCIL OF THE EUROPEAN 
COMMUNITIES, 
Having regard to the Treaty establishing the 
European Economic Community, and in particular 
Article 100 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European 
Parliament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas wide differences exist between the laws in 
force in the Member States of the European 
Economic Community in the field of consumer credit; 
Whereas these differences in the national provisions 
of law are inimical to the establishment of a system 
which ensures that competition between grantors of 
credit is not distorted in the common market; 
Whereas these differences of law result in, or are 
otherwise accompanied by, divergent practices in each 
of the 10 national consumer credit markets in the 
European Economic Community; whereas the 
disparities of law and practice result in unequal 
consumer protection in the field of consumer credit 
from one Member State to another; 
Whereas these differences limit the opportunities the 
consumer has to obtain credit in another Member 
State; whereas they affect the volume and the nature 
of the credit sought, and also the purchase of goods 
and services; 
Whereas, in consequence, these differences have an 
influence on the free movement of goods and services 
obtainable by consumers on credit and thus hinder the 
0) OJ No C 80, 17. 3. 1979, p. 4. 
10.7.84 Official Journal of the European Communities No C 183/5 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
development of economic activities throughout the 
Community; harmonious development of economic activities 
throughout the Community; 
Whereas the Preliminary Programme of the European 
Economic Community for a consumer protection and 
information policy (*) provides inter alia that the 
consumer should be protected from unfair credit 
terms and that a harmonization of the general 
conditions governing consumer credit should be 
undertaken as a priority; whereas for the foregoing 
reasons the laws in force in Member States 
concerning consumer credit directly affect the 
functioning of the common market; Whereas the Preliminary Programme of the European 
Economic Community for a consumer protection and 
information policy (x) provided inter alia that the 
consumer should be protected against unfair credit 
terms and that a harmonization of the general 
conditions governing consumer credit should be 
undertaken as a priority; whereas the Second 
Programme of the European Economic Community 
for a consumer protection and information policy (2) 
lists the Commission's proposal for a Directive on 
consumer credit as one which is still under discussion 
in the Council; whereas, in relation to action already 
begun by the Commission under the Preliminary 
Programme but not completed, paragraph 30 of the 
Second Programme requires the Commission to 
pursue that action, particularly as regards certain 
unfair commercial practices; whereas these latter are 
to some extent regulated in this present Directive in 
so far as they affect consumer credit; 
Whereas the laws in force in the Member States 
concerning consumer credit cause fragmentation of 
the market in consumer credit, tend by their very 
nature to perpetuate that fragmentation, accordingly 
operate to that extent as obstacles to the establishment 
of a common market in consumer credit, and 
therefore, given the enormous and constantly in­
creasing volume of credit granted in the European 
Economic Community to consumers, which is a 
reflection of society's dependence upon credit in 
general, directly affect the functioning of the common 
market; 
Whereas in the European Community the demand for 
consumer credit in order to meet private needs has 
increased considerably in recent decades; whereas it 
continues to show this overall tendency; Whereas the establishment of a common market in 
consumer credit would benefit alike consumers, 
grantors of credit, manufacturers of goods and 
providers of services; 
Whereas the type of credit taken out has changed 
over a period of time; whereas new forms have 
emerged and continue to develop; Whereas there has been much change in recent years 
in the types of credit available to and used by 
consumers; whereas new forms of consumer credit 
have emerged and continue to develop; 
Whereas the consumer does not always receive 
sufficient information on the conditions and cost of 
credit and the nature of his obligations; whereas the 
terms of credit agreements are often disadvantageous 
to the consumer; Whereas the consumer does not always receive 
enough information on the conditions and cost of 
credit and on the nature of his obligations; whereas 
he would be much assisted in this if he were told inter 
alia, the annual percentage rate of charge for credit; 
whereas there should be established, for 
(•) Oj No C 92, 25. 4. 1975, p. 1. C) OJ No C 92, 25, 4. 1975, p. 1. 
O OJNoC 133, 3.6. 1981, p. 1. 
No C 183/6 Official Journal of the European Communities 1 o. 7. 84 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
Whereas better protection of consumers can be 
achieved by adopting certain minimum requirements 
for all forms of credit; whereas, nevertheless, specific 
rules governing overdrafts granted or accepted by 
banks and other finance institutions should be laid 
down; each type of consumer credit, a uniform method of 
calculating the annual percentage rate of charge for 
credit, which uniform method should be used in every 
Member State; 
Whereas the terms of credit are often disadvantageous 
to the consumer; 
Whereas better protection of consumers can be 
achieved by adopting certain requirements which are 
to apply to all forms of credit; 
Whereas, however, it is appropriate that certain types 
of consumer credit and certain kinds of transaction be 
excluded from the scope of this Directive, namely: 
(a) credit intended primarily for the purpose of 
acquiring or retaining property rights in land or 
buildings or of renovating or improving the 
structure of a building, 
(b) hiring agreements under which the title does not 
ultimately pass to the hirer, 
(c) credit to finance the supply of goods or services 
and which the consumer is under obligation to 
repay within three months of the date on which 
the credit is granted, 
(d) credit granted in the form of an advance on a 
current account, or accepted in that form, by a 
credit institution or other financial institution, but 
certain specific rules relating to overdrafts granted 
or accepted by these institutions should 
nevertheless be laid down, 
(e) credit of an amount less than 200 ECU or more 
than 30 000 ECU, these upper and lower limits 
being nevertheless adjustable in line with the 
average annual rate of inflation in the European 
Community; 
Whereas it may be necessary to fix different financial 
limits above or below which the provisions of this 
Directive shall not apply in light of their different 
economic effects in each Member State; whereas such 
financial limits have to be determined in accordance 
with a Community procedure; Whereas it is necessary to adjust periodically, in 
accordance with a Community procedure, the financial 
limits above or below which this Directive shall not 
apply; whereas for the sake of legal certainty these 
upper and lower limits, and their values in the national 
currency of each Member State, must be fixed on the 
basis of the rates of exchange prevailing on the day on 
which the limits are fixed; whereas, for the like 
reason, the values of these limits in each national 
currency of the Member States must continue to apply 
until the limits are adjusted; 
Whereas the provision of information on the cost of 
credit in advertising and at the business premises of 
the creditor or credit broker can make it easier for 
the consumer to compare different offers; whereas Whereas the provision of information on the cost of 
credit in advertising and at the business premises of 
the creditor or credit broker can make it easier for 
the consumer to compare different offers; whereas the 
10.7.84 Official Journal of the European Communities No C 18 3/7 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
Member States should be permitted to completely 
prohibit the unsolicited canvassing of consumers for 
the purpose of offering personal credit; consumer should be allowed a cooling-off period of 
not less than seven days from the date of conclusion 
of a credit agreement which results from an 
unsolicited visit to him at his home, his place of work 
or elsewhere and is concluded in a place other than 
the place of business of the creditor or negotiator; 
whereas the consumer should be given notice of his 
right to cool off; 
Whereas consumer protection is further improved if 
credit agreements are made in writing and contain 
certain particulars concerning the essential con­
tractual conditions; Whereas consumer protection is further improved if 
credit agreements are made in writing and contain at 
least certain minimum particulars concerning the 
contractual terms; whereas the consequences of failure 
to respect the provisions requiring disclosure of those 
terms are to be determined by application of the 
national law; 
Whereas, in the event of default in payments on the 
part of the consumer, the creditor should not be 
permitted to repossess goods supplied on credit where 
the consumer remains liable for payment; whereas 
provisions should be made for credit agreements to be 
deemed to be terminated where the creditor 
repossesses the goods; Whereas provision should be made for credit 
agreements to terminate where the creditor 
repossesses the goods; whereas repossession of the 
goods or early termination of a credit agreement must 
not disadvantage any of the parties, unjustifiably; 
whereas, where the consumer has paid a certain pro­
portion of the price but then defaults in payment, the 
creditor should not be permitted, except by order of a 
court, to repossess goods supplied on credit; 
Whereas, in view of the considerable bearing which 
credit has on the consumer's economic and, in many 
cases personal situation, he should be allowed to 
discharge his obligations before the due date; whereas 
the interest and other charges paid should then be 
refunded in accordance with the provisions adopted 
by the Member State; Whereas, in view of the considerable bearing which 
credit has on the consumer's economic and, in many 
cases, personal situation, he should be allowed to 
discharge his obligations before the due date; whereas 
the interest and other charges payable should then be 
reduced, or, if already paid, should be refunded, in 
accordance with the provisions adopted by the 
Member State; 
Whereas the assignment of rights arising from credit 
agreements should not be allowed to weaken the 
position of the consumer; Whereas the assignment of the creditor's rights arising 
under a credit agreement should not be allowed to 
weaken the position of the consumer; 
Whereas the use of negotiable instruments in credit 
agreements with a consumer should be restricted; 
whereas cheques should be used only as a means of 
payment; Whereas the use of negotiable instruments in credit 
agreements with a consumer should be restricted; 
whereas cheques and bank notes should be used only 
as means of payment in this context; 
Whereas, in the event of cooperation between a 
creditor and a supplier, they should be jointly and 
severally liable to the consumer for the payments 
made by him if the goods are not supplied or are not 
in accordance with the terms of the agreement; 
whereas liability should not also be imposed on the 
creditor in respect of damage caused by a defective Whereas, in the event of cooperation between a 
grantor of credit ('the creditor') and a supplier of 
goods or services ('the supplier'), in such circum­
stances that the supply of the goods or the provision of 
the services is to be financed by the creditor under an 
arrangement between him and the supplier, they 
should be jointly and severally liable to the consumer 
No C 183/8 Official Journal of the European Communities 10.7.84 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
item to other property of the consumer or of a third 
party; 
Whereas suitable measures to be chosen by the 
Member States should be adopted for supervising 
creditors; 
Whereas contractual clauses excluding the application 
of the provisions adopted pursuant to this Directive 
must not be permitted; 
Whereas the provisions of this Directive shall not 
prevent Member States from adopting other measures 
to protect consumers, with due regard for their 
obligations under the Treaty establishing the 
European Economic Community and in particular the 
rules on the free movement of goods, the freedom to 
provide services, and competition, for reimbursement of the payments made by him, if 
the goods or services are not supplied or do not 
conform with the terms of the agreement; whereas it 
is appropriate that the creditor be indemnified by the 
supplier if the creditor reimburses the consumer in 
those circumstances; 
Whereas suitable measures to be chosen by the 
Member States should be adopted for supervising 
creditors; 
Whereas contractual clauses excluding the application 
of the provisions adopted in implementation of this 
Directive must not be permitted; 
Whereas the provisions of this Directive must not 
prevent Member States from adopting other measures 
to protect consumers, with due regard for their 
obligations under the Treaty establishing the 
European Economic Community and, in particular, 
the rules on free movement of goods, freedom to 
provide services, and competition; 
Whereas the entry into force in the Member States of 
the provisions establishing for each type of consumer 
credit a uniform method of calculating the annual 
percentage rate of charge for credit must coincide 
with the entry into force of the provisions adopted by 
the Member States in implementation of the 
remaining parts of this Directive, 
HAS ADOPTED THIS DIRECTIVE: HAS ADOPTED THIS DIRECTIVE: 
Article 1 
1. This Directive shall apply to credit agreements. 
2. For the purpose of this Directive: 
(a) 'consumer' means a natural person not acting 
predominantly in a commercial or professional 
capacity; 
(b) 'creditor' means a natural or legal person who 
grants credit in the course of his commercial 
activity or business, or a group of such persons; 
(c) 'credit agreement' means an agreement whereby a 
creditor grants a consumer credit in the form of 
deferred payment, a loan or a promise to grant a 
loan or other financial accommodation and under 
which the consumer repays the credit, including 
any interest and charges, in more than one 
instalment; Article 1 
1. This Directive applies to credit agreements. 
2. For the purpose of this Directive: 
(a) 'consumer' means a natural person who, in 
transactions covered by this Directive, is acting 
for purposes which can be regarded as outside his 
trade or profession; 
(b) 'creditor' means a natural or legal person who 
grants credit in the course of his trade, business or 
profession, or a group of such persons; 
(c) 'credit agreement' means an agreement whereby a 
creditor grants or promises to grant to a 
Consumer a credit in the form of a deferred 
payment, a loan or other financial 
accommodation, and under which the consumer 
repays the credit* including any interest and 
charges, in more than one instalment; 
10.7.84 Official Journal of the European Communities No C 183/9 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
(d) 'effective annual rate of interest' means the total 
cost of the credit expressed as an annual 
percentage of the amount of the credit granted, 
including interest and all other charges; the 
effective annual rate of interest shall be calculated 
in accordance with the rules laid down by the 
Member States. 
3. An agreement for the supply of goods or the 
provision of services concluded with a consumer 
(a) which is financed by means of a credit agreement 
between a supplier and a consumer, or 
(b) which is financed by means of a credit agreement 
between a creditor and a consumer, in so far as 
the creditor cooperates with the supplier in the 
performance of the agreement for the supply of 
goods or the provision of services, 
shall also be deemed to be a credit agreement within 
the meaning of paragraph 2. 
4. Member States shall adjust the provisions of this 
Directive in applying them to credit agreements 
between a broker and a consumer. 
Article 2 
1. This Directive shall not apply to: 
(a) credit agreements or agreements promising to 
grant credit intended primarily for the purpose of 
acquiring property rights in land or in an existing 
or projected building or intended for the purpose 
of renovating or improving a building; (d) 'annual percentage rate of charge' means the total 
cost of the credit expressed as an annual 
percentage of the amount of the credit granted. 
The total cost of the credit will include, in 
particular, interest and any other charges which 
arise under: 
(i) the credit agreement itself; 
(ii) any transaction entered into to comply with 
the credit agreement; 
(iii) any other contract which the creditor insists 
on the consumer or a relative of his making 
or maintaining as a condition of being 
granted the credit; 
(iv) any contract for security relating to the credit 
agreement; and 
(v) any statutory obligation connected with the 
making of the credit agreement. 
The matters set out at (i) to (iv) inclusive do not 
include premiums payable in contracts of 
insurance when the choice of the insurer is left to 
the consumer. 
All references in this Directive to the annual 
percentage rate of charge are references to the 
annual percentage rate of charge calculated in 
accordance with the provisions adopted in 
implementation of the Directive mentioned in the 
next following subparagraph. 
Within one year after notification of this Directive 
the Commission shall adopt a Directive 
establishing a uniform method of calculating the 
annual percentage rate of charge. 
3. An agreement for the supply of goods or the 
provision of services concluded with a consumer 
which is financed by means of a credit agreement 
between the supplier of the goods or provider of the 
services and the consumer shall be deemed to be a 
credit agreement within the meaning of paragraph 2. 
4. Member States shall apply the provisions of this 
Directive mutatis mutandis to credit agreements 
involving an intermediary. 
Article 2 
1. This Directive does not apply to: 
(a) credit agreements or agreements promising to 
grant credit intended primarily for the purpose of 
acquiring or retaining property rights in land or 
in an existing or projected building or intended 
for the purpose of renovating or improving the 
structure of a building; 
NoC 183/10 Official Journal of the European Communities 10.7.84 
ORIGINAL PROPOSAL 
(b) hiring agreements; 
(c) agreements, in particular for the supply of goods 
or the provision of services, under which the 
consumer is granted a period not exceeding three 
months within which to pay the price stipulated in 
the agreement; 
(d) subject to the provisions of Article 8, credit in the 
form of advances on a current account granted or 
accepted by a credit institution or financial 
institution, other than credit cards; 
(e) amounts greater or less than particular sums to be 
fixed by the Commission for a Member State 
which so requests after consultation with that 
Member State. 
2. Where the provisions of paragraph 1 (e) above 
are applied, Member States concerned shall take steps 
to ensure that the provisions on consumer credit are 
not circumvented as a result of the way in which 
agreements are formulated, in particular by the device 
of distributing the amount of credit over several 
agreements. 
Article 3 
Without prejudice to the general rules on misleading 
and unfair advertising, an advertisement in which a 
person offers to conclude or arrange credit 
agreements, and in which costs relating to the credit 
are indicated, shall show the total cost. 
Where a percentage is given, the effective annual rate 
of interest must also be indicated. 
Article 4 
Member States may prohibit unsolicited visits to a 
consumer at his home, at his place of work or 
elsewhere for the purpose of proposing to him the 
conclusion of a credit agreement. AMENDED PROPOSAL 
(b) hiring agreements under which the title does not 
ultimately pass to the hirer; 
(c) unchanged; 
(d) subject to the provisions of Article 8, credit in the 
form of advances on a current account granted or 
accepted by a credit institution or financial 
institution, other than on credit card accounts; 
(e) agreements involving amounts less than 200 or 
more than 30 000 ECU, these limits to be adjusted 
periodically by the Commission in line with the 
average annual rate of inflation in the 
Community. 
The parities between the national currencies of 
Member States and these upper and lower limits 
shall be fixed at the rates of exchange prevailing 
on the same day as the limits themselves are fixed 
and shall continue until such time as the 
Commission shall adjust such limits. 
2. Member States shall ensure that the provisions 
which they adopt in implementation of this Directive 
are not circumvented as a result of the way in which 
agreements are formulated, in particular by the device 
of distributing the amount of credit over several 
agreements. 
Article 3 
Without prejudice to the general rules on misleading 
and unfair advertising, any advertisement in which a 
person offers to conclude or arrange credit 
agreements, and in which any rate is expressed or 
implied to be the rate of charge or interest, shall also 
indicate the annual percentage rate of charge, by 
means of an example if no other means is practicable. 
Article 4 
A credit agreement which results from an unsolicited 
visit to a consumer at his home, his place of work or 
elsewhere and is concluded in some place other than 
the place of business of the creditor or negotiator shall 
be subject to cancellation by the consumer by 
notification to the creditor within a cooling-off period 
of not less than seven days from the conclusion of the 
agreement. This right of cancellation shall be made 
known to the consumer by clear written notice given 
to him not later than the time of the conclusion of the 
agreement. 
10. 7. 84 Official Journal of the European Communities No C 183/11 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
For the purposes of this Article a period of approval 
during which the consumer has possession of the 
goods and may return the same free of charge shall be 
deemed to be a cooling-off period. 
Article 5 
Any person offering to conclude or arrange credit 
agreements shall clearly display, at those of his 
business premises to which the public has access, the 
annual rate of interest and other costs relating to the 
credit which he grants or arranges, and/or a notice to 
the effect that the consumer may request an offer 
which shall be binding on such a person if he grants 
the credit. He shall in both cases give examples of the 
effective annual rate of interest in respect of given 
sums. Article 5 
Any offer to provide credit, which is displayed at 
business premises to which the public has access, shall 
include a statement of the annual percentage rate of 
charge, where appropriate by means of an example. 
Article 6 
1. Credit agreements shall be made in writing. All 
credit agreements shall be signed by both parties. The 
facsimile signature of the creditor shall suffice. 
The consumer shall receive a copy of the written 
agreement. 
2. The written agreement shall contain the 
essential contractual conditions and at least the 
following particulars: 
(a) for credit agreements for the supply of goods or 
the provision of services: 
(i) a description of the goods or services 
covered by the agreement; 
(ii) the cash price and the credit price where this 
differs from the cash price; 
(iii) the effective annual rate of interest; where 
the cash price and the credit price are 
different; 
(iv) the amount of the deposit (if any) and the 
due dates, the number and amount of the 
instalments; 
(v) the terms covering any rebate for early 
repayment; 
(vi) who owns the goods and the terms under 
which the consumer becomes the owner of 
the goods; 
(vii) details of the security required (if any); Article 6 
1. Credit agreements shall be made in writing. 
The consumer shall receive a copy of the written 
agreement. 
2. The written agreement shall contain at least the 
following terms: 
(a) credit agreements for financing the supply of 
particular goods or services: 
(i) unchanged; 
(ii) unchanged; 
(iii) the annual percentage rate of charge; 
(iv) the amount of the deposit (if any), the 
number and size of instalments and the 
dates on which they fall due, or the method 
of ascertaining any of the same if unknown 
at the time of agreement; 
(v) an indication that the borrower will be 
entitled, as provided in Article 10, to a 
reduction or refund if he repays early; 
(vi) who owns the goods, and the terms on 
which the consumer becomes the owner of 
them; 
(vii) an indication of the security required, if 
any; 
NoC 183/12 Official Journal of the European Communities 10.7.84 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
(viii) the cooling-off period, if any; 
(ix) the conditions and terms applicable to 
changes in the rate of interest; 
(x) an indication of the insurance(s) required, if 
any, and, when the choice of insurer is not 
left to the consumer, an indication of the 
cost thereof; 
(b) for credit agreements in the form of credit cards: 
(i) a means of identifying the credit card; 
(ii) the credit limit (if any); 
(iii) annual rate of interest (if any) and the 
amount of any charges; 
(iv) the terms of repayment; (b) credit agreements operated by credit cards: 
(i) the serial number of the credit card, if 
known; 
(ii) unchanged; 
(iii) the annual percentage rate of charge; 
(iv) the terms of repayment or the means of 
determining the same; 
(v) the cooling-off period, if any; 
(vi) the conditions and terms applicable to 
changes in the rate of interest. 
The provisions of paragraph 1 and paragraph 2 
(a) shall not apply to an agreement for the supply 
of goods or the provision of services concluded 
with a consumer, which is financed by means of an 
existing credit agreement operated by a credit 
card. 
(c) credit agreements in the form of running accounts 
not otherwise covered by this Directive: 
(i) the limit of credit or the method of 
determining the same; 
(ii) the annual percentage rate of charge; 
(iii) the terms of use and repayment; 
(iv) the cooling-off period, if any; 
(v) the conditions and terms applicable to 
changes in the rate of interest. 
The provisions of paragraph 1 and paragraph 2 
(a) shall not apply to an agreement for the supply 
• of goods or the provision of services concluded 
with a consumer, which is financed by means of an 
existing credit agreement in the form of a running 
account not otherwise covered in this Directive 
between the same supplier and the same consumer. 
(c) for other credit agreements falling within the 
scope of this Directive: 
(i) the amount or limit of the credit or — in the 
case of a promise to grant credit — the 
amount or limit of the credit proposed; (d) other credit agreements falling within the scope 
of this Directive: 
(i) unchanged; 
10.7.84 Official Journal of the European Communities NoC 183/13 
ORIGINAL PROPOSAL 
(ii) the annual rate of interest and any other 
charges; 
(iii) the effective annual rate of interest unless a 
promise of a loan is concerned, in which case 
that rate shall be specified at the date when 
the loan is taken up; 
(iv) an indication of the security required (if 
any); 
(v) the terms of repayment. 
Article 7 
The laws of each Member State shall lay down the 
legal consequences of failure to respect the provisions 
of Article 6. 
Article 8 
Notwithstanding the exclusion provided for in Article 
2 (1) (d), the consumer shall be informed in writing 
in the case of credit in the form of an advance on a 
current account within the meaning of Article 2 (1) 
(d): 
(a) at the time the agreement is concluded: 
— of the credit limit (if any); 
— of the annual rate of interest and the charges 
applicable from the time the agreement is 
concluded and the conditions under which it 
may be amended; 
— of the procedure for terminating the 
agreement; 
(b) during the period of the contract credit 
agreement, of any change in the annual rate of 
interest or in the relevant charges at the time it 
occurs. Such information may be given in a bank 
statement if such statements are sent at intervals 
of one month or less; 
(c) when a tacitly accepted overdraft extends beyond 
a period of three months of the annual rate of 
interest and any relevant charges, and of any 
amendments thereto. 
Article 9 
1. A credit agreement shall be void from the time 
the creditor repossesses, either on the basis of a right 
of ownership or of any other right, the goods 
supplied under a credit agreement. 
2. Member States shall lay down rules to ensure 
that repossession of goods does not lead to 
unjustified disadvantages to any of the parties 
involved. AMENDED PROPOSAL 
(ii) the annual percentage rate of charge; 
(iii) an indication of the security required, if any; 
(iv) the terms of repayment; 
(v) the cooling-off period, if any; 
(vi) the conditions and terms applicable to 
changes in the rate of interest. 
Article 7 
Unchanged. 
Article 8 
Notwithstanding the exclusion provided for in Article 
2 (1) (d), the consumer shall be informed in writing 
in the case of credit in the form of an advance on a 
current account within the meaning of Article 2 (1) 
(d): 
(a) at the time or before the agreement is concluded, 
— unchanged; 
— unchanged; 
— unchanged; 
(b) during the period of agreement, of any change in 
the annual rate of interest or in the relevant 
charges at the time it occurs. Such information 
may be given in a statement of account at 
intervals of three months or less; 
(c) when a tacitly accepted overdraft extends beyond 
a period of three months, of the annual rate of 
interest and of any relevant charges, and of any 
amendment thereof. 
Article 9 
1. A credit agreement relating to goods shall 
terminate if the relevant goods are repossessed, on the 
basis eithef of a right of ownership or of any other 
right. 
2. Member States shall lay down rules to ensure 
that repossession of goods or early termination of a 
credit agreement does not lead to Unjustified disad­
vantages to arty of the parties involved, 
No C 183/14 Official Journal of the European Communities 10.7. 84 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
3. Where the consumer has repaid one-third or 
more of the credit price of the goods, the creditor 
may not recover possession of the goods on the 
ground of his right of ownership, or of any other 
right, except on order of a court. 
4. Where goods are recovered by the creditor in 
contravention of the rules laid down in 
implementation of paragraphs 2 and 3, the credit 
agreement shall terminate and the consumer shall be 
released from all liability under the agreement and 
shall be entitled to recover from the creditor all the 
sums paid to him under the agreement. 
Article 10 
The consumer shall be entitled to discharge his 
obligations under a credit agreement before the time 
fixed by the agreement; in this case, interest and 
other charges shall be refunded in accordance with 
the provisions adopted by the Member States. Article 10 
The consumer shall be entitled to discharge his 
obligations under a credit agreement before the time 
fixed by the agreement; in this event the consumer 
shall be entitled to an appropriate reduction in the 
total amount payable, or to an equivalent refund if the 
whole amount has already been paid, in accordance 
with the rules laid down by the Member States. 
Article 11 
Where the creditor assigns to a third person his rights 
against the consumer under a credit agreement, the 
consumer shall be entitled to plead against the third 
party any defence — including set-off — which is or 
would have been available to him against the creditor 
before the assignment. Article 11 
Unchanged. 
Article 12 
In the operation of credit agreements: 
(a) bills of exchange, other than cheques, and prom­
issory notes may not be used either as security or 
as a means of payment; 
(b) cheques may be used only as a means of payment. Article 12 
In the operation of credit agreements: 
(a) cheques and bank notes may be used only as 
means of payment or repayment but not 
otherwise; 
(b) subject to (a), negotiable instruments shall not be 
used either as security or as means of payment; 
(c) if a consumer becomes liable to a holder in due 
course of a negotiable instrument, the creditor 
shall indemnify him in respect of that liability. 
Article 13 
1. Where the consumer proves the existence of 
cooperation as referred to in Article 1 (3) (b), and 
where the goods are not supplied or the services are 
not provided, and where he is not responsible for 
such failure to supply the goods or services, he shall, 
provided he has the right under the laws of the 
Member State concerned to recover from the supplier Article 13 
1. Where it is established that an arrangement 
exists between a supplier of goods or services and a 
creditor by which the supply is to be financed by a 
loan or loans to the consumer, and where, in such a 
case, the goods are not supplied or the services are not 
provided and the consumer is not responsible for such 
failure to supply the goods or services, he shall be 
10.7.84 Official Journal of the European Communities No C 183/15 
ORIGINAL PROPOSAL 
payments made by him and to refuse further 
payment, enjoy the same right in relation to the 
creditor. 
2. The consumer shall have the same rights under 
the conditions specified in paragraph 1 where the 
goods supplied or services provided do not conform 
to the agreement. 
3. In the cases referred to in paragraphs 1 and 2, 
the supplier and creditor shall be jointly and severally 
liable to the consumer for any repayment of sums 
paid. 
4. This Article shall not prejudice any other rights 
of the creditor against the supplier or rights of the 
creditor against the supplier. 
Article 14 
1. Member States shall provide that: 
(a) persons offering to conclude or arrange credit 
agreements shall obtain official authorization; or 
(b) persons concluding or arranging credit 
agreements shall be subject to inspection of their 
activities by an official body; or 
(c) a body be set up to examine complaints from 
individual consumers concerning credit 
agreements entered into by or offered to them as 
well as to receive complaints from consumer 
organizations concerning credit agreements or 
credit conditions offered to consumers; 
(d) if persons referred to in paragraph (a) above 
satisfy the definition in Article 1 of the First 
Coordinating Directive on Banking Activities ('), 
they may not receive official authorization to 
exercise their activity before they have received 
banking authorization. 
O OJ No L 322, 17. 12. 1977, p. 30. AMENDED PROPOSAL 
entitled to recover from the supplier or creditor, or 
both of them, all payments made by him under the 
agreement for supply of the goods or provision of the 
services, or under the agreement for loan, in respect 
of the goods not supplied or services not provided, 
and may refuse to make any further payment to either 
of them in respect thereof. 
2. The consumer shall have the same rights under 
the conditions specified in paragraph 1 where the 
goods supplied or services provided do not conform 
to the agreement, in circumstances where such failure 
to conform would entitle the consumer to rescission of 
the contract under the applicable national law. 
3. In the cases referred to in paragraphs 1 and 2, 
the supplier and creditor shall be jointly and severally 
liable to the consumer. 
4. This Article shall not prejudice any other rights 
of the consumer against the supplier or rights of the 
creditor against the supplier. 
Subject to any agreement to the contrary, the creditor 
shall be entitled to be indemnified by the supplier 
against any loss arising from the operation of this 
Article. 
Article 14 
1. Member States shall provide that: 
(a) unchanged 
(b) unchanged 
(c) a body be empowered to examine complaints 
from individual consumers concerning credit 
agreements entered into by or offered to them, as 
well as to receive complaints from consumer 
organizations concerning credit agreements or 
credit conditions offered to consumers. 
2. If persons offering to conclude or arrange credit 
agreements satisfy the definition in Article 1 of the 
First Council Directive 77/780/EEC on the coordi­
nation of laws, regulations and administrative 
provisions relating to the taking up and pursuit of the 
business of credit institutions ('), they may not receive 
official authorization to exercise their activity before 
they have received authorization under the provisions 
of that Directive. 
(') OJ No L 322, 17. 12. 1977, p. 30. 
NoC 183/16 Official Journal of the European Communities 10.7.84 
ORIGINAL PROPOSAL AMENDED PROPOSAL 
2. The body referred to in paragraph 1 (c) shall be 
empowered to examine the complaints it receives to 
advise consumers on the legal protection to which 
they are entitled and to institute legal proceedings on 
their behalf where they do not wish to exercise their 
rights but are willing to let the body act for them. Where authorization under the provisions of that 
Directive is withdrawn, official authorization to offer 
to conclude or arrange credit agreements shall also be 
withdrawn. 
Nevertheless, by way of derogation from the 
foregoing subparagraph, where such persons expressly 
surrender their authorization to receive deposits, they 
may continue to grant credits, or to act as interme­
diaries for purposes of the conclusion of credit 
agreements, provided the surrender is notified to the 
authorities empowered to issue the said official 
authorization and those authorities consider that those 
persons should be permitted to continue granting 
credits. 
3. Any body empowered under paragraph 1 (c) to 
receive complaints shall also be empowered to 
examine the complaints it receives, to advise 
consumers on the legal protection to which they are 
entitled and to institute legal proceedings on their 
behalf where they do not wish to exercise their rights 
but are willing to let the body act for them. 
Article 15 
No contractual agreement shall derogate, to the Unchanged, 
disadvantage of the consumer, from the provisions 
adopted in application of this Directive. 
Article 16 
Member States may lay down or retain more Unchanged, 
stringent provisions to protect consumers consistent 
with their obligations under the Treaty. Article 15 
Article 16 
Article 17 
1. The Member States shall bring into force the 
measures necessary to comply with this Directive 
within 18 months of its notification and shall 
forthwith inform the Commission thereof. 
2. The Member States shall communicate to the 
Commission the texts of the main provisions of 
national law which they adopt in the field covered by 
this Directive. Article 17 
1. The Member States shall bring into force the 
measures necessary to comply with this Directive and 
with the Directive referred to in Article 1 (2) (d) 
within 18 months after notification of this Directive, 
and shall forthwith inform the Commission thereof. 
2. The Member States shall communicate to the 
Commission the texts of the main provisions of 
national law which they adopt in the fields covered by 
the two said Directives. 
Article 18 
This Directive is addressed to the Member States. Article 18 
Unchanged.