S.L. 378.10 Art. 12Disclosure and verification of consumer information.

(1) The assessment of creditworthiness referred to in regulation 9 shall be carried out on the basis of information on the consumer’s income and expenses and other financial and economic circumstances which is necessary, sufficient and proportionate.

(2) The information referred to in sub-regulation (1) shall be obtained by the creditor from relevant internal or external sources, including the consumer, and including information provided to the credit intermediary during the application process of the credit: Provided that such information shall be appropriately verified, including, when necessary, through reference to independently verifiable documentation:

Provided further that such information shall be up to date at that moment in time, and on reasonable assumptions as to the consumer situation over the term of the proposed credit agreement.

(3) Credit intermediaries shall accurately submit the necessary information obtained from the consumer to the relevant creditor to enable the creditworthiness assessment to be carried out.

(4) Creditors shall specify in a clear and straightforward way at the pre-contractual phase the necessary information and independently verifiable evidence that the consumer needs to provide and the time-frame within which the consumer needs to provide the information: Provided that such request for information shall be proportionate and limited to what is necessary to conduct a proper creditworthiness assessment:

Provided further that, where necessary to enable the assessment of creditworthiness, creditors may seek clarification of the information received in response to that request.

(5) A creditor shall not terminate the credit agreement on the grounds that the information provided by the consumer before the conclusion of the credit agreement was incomplete: Provided that the creditor may terminate the credit agreement where it is demonstrated that the consumer knowingly withheld or falsified the information.

(6) The Director General shall have measures in place to ensure that consumers are aware of the need to provide correct information in respect to the request referred to in sub-regulation (4) and that such information is as complete as necessary to conduct a proper creditworthiness assessment.

(7) The creditor or credit intermediary shall warn the consumer that, where the creditor is unable to carry out an assessment of the creditworthiness because the consumer chooses not to provide the information or verification necessary for an assessment of creditworthiness, the credit cannot be granted.

(8) The warning referred to in sub-regulation (7) may be provided in a standardised format.

(9) This regulation shall be without prejudice to the Data Protection Directive, in particular Article 6 thereof.