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Art. 11 and Art. 12 of the Regulation both explain the terms that
are included in the Mandatory Content of the Agreements. Art. 13 sets
forth Amendment of the Agreements. Accordingly, the terms of the
definite agreements shall not be amended to the detriment of the con-
sumers. In indefinite agreements, in the event that the contractual inter-
est rate is amended, it is obligatory that the consumers are informed of
such amendments thirty days prior to entry into force, in hard copy, or
in permanent data storage form. This notification shall comprise the
amount to be paid after entry into force of the amended interest rate,
the number of payments, and the details in relation thereto. If the inter-
est rate is increased, the new interest rate shall not be applied retroac-
tively. The consumer shall not be affected from the increase in the
interest rate, provided that the entire debt is paid, or the loan usage
ceases within sixty days after the date of such notification. If the pro-
visions, other than those that govern the interest rate, are amended, it
is mandatory that notification be given to the consumer in writing or by
a permanent data storage thirty days before their entry into force. The
consumer shall decline such amendment and use the termination right
set forth under Art. 25.
As per Art. 14 of the Regulation, consumer loan agreements shall
contain the effective annual interest rate. Article 15 governs Early
Payments. In accordance with the Regulation, the consumer may pay
either a single or multiple installments or pre-pay the loan debt fully,
or in part. In these cases, the lender is obliged to make the necessary
discount. Art. 17 of the Regulation defines Interim Payments.
According to this Article, pre-payment by the consumer that covers
any amount not less than a single installment amount as stated in the
payment plan is called an interim payment. The same Article regulates
the consequences of interim payments, as well.
The Regulation defines the Limit Excess as the state of overdraft
of a deposit account limit, or the event in which the consumer collects
cash that exceeds the amount available in his deposit account, and is
implicitly acknowledged by the consumer. As stated in Article 21, if
the opening of a deposit account allowing limit excess is concluded
with the consumer, such agreement shall comprise the contractual
interes rate, and the conditions regarding the application of such rate.
In any case, the lendor is obliged to provide the consumer with this
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NEWSLETTER 2015