S.L. 378.10 Art. 7AAdequate explanations.

(1) Creditors and, where applicable, credit intermediaries shall provide adequate explanations to the consumer on the proposed credit agreement and any ancillary services, in order to place the consumer in a position enabling him to assess whether the proposed credit agreement and ancillary services are adapted to his needs and financial situation.

(2) The adequate explanations referred to in sub-regulation (1) shall, where applicable, include in particular:

(a) an explanation of the information and terms included in the pre-contractual information to be provided in accordance with regulation 9 in the case of creditors and regulations 9 and 10 in the case of credit intermediaries;

(b) the essential characteristics of the product proposed;

(c) the specific effects the products proposed may have on the consumer, including the consequences of default in payment by the consumer; and

(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 doing so.

(3) The Director General may adapt the manner by which and the extent to which the explanations referred to in sub-regulations

(1) and (2) is given, as well as by whom it is given, to the circumstances of the situation in which the credit agreement is offered, the person to whom it is offered and the nature of the credit offered.