S.L. 376.10 Art. 12Adequate explanations.

Creditors, and where applicable, credit intermediaries shall be required to provide free of charge and before concluding the credit agreement, adequate explanations to the consumer on the proposed credit agreements and any ancillary services which make it possible for the consumer to assess whether the proposed credit agreements and ancillary services are adapted to the needs and financial situation of the consumer, including the following elements:

(a) the information referred to in regulations 6(2), 10 and 11;

(b) the essential characteristics of the credit agreement or of the ancillary services proposed;

(c) the specific effects that the credit agreement or the ancillary services proposed may have on the consumer, including the consequences of payment default or late payment by the consumer;

(d) where ancillary services are bundled with a credit agreement, whether each component of the bundle can be terminated separately and the implications for the consumer of such termination.