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information, on a monthly basis, either in hard copy or in permanent
data storage form. In the event of significant limit excess for periods
that exceed one month, the lender shall promptly inform the consumer,
either in hard copy or in permanent data storage form.
Art. 18 of the Regulation governs the events of Defaults and Late
Payments. If the consumer lapses into default of installment payments,
the lender may request payment of the entirety of the debt as a whole.
However, the lender must reserve this right in the agreement, must ful-
fil his obligations, if the consumer lapses into default for at least two
succesive installments. The lender must notify the consumer regarding
the maturity by at least thirty days, in order to enjoy this right.
Additionally, in the event of default or late payment, the lender shall
not collect default interest, which is 30% higher than the contractual
interest amount.
Art. 24, which is one of the most significant Articles of the
Regulation, governs the Right of Withdrawal. The Regulation bestows
the consumer with the right to withdraw from the consumer loan agree-
ment, within fourteen days, without giving justification, nor paying a
penalty. The right of withdrawal can be enjoyed as of the execution
date of the agreement. However, in the case where the date upon which
a copy of the agreement is delivered to the consumer, either in hard
copy, or in permanent data storage form, on a later date than the exe-
cution date of the agreement, such right shall be used as of the deliv-
ery date of the copy of the agreement. In cases where the consumer
enjoys the right of wihdrawal benefits from the loan, the consumer
shall refund the principal debt and the amount of the interest accrued
as of the usage of the loan until the date of refund. In the case of non-
payment within this period, the consumer shall be deemed as having
not withdrawn from the consumer loan.
Art. 26 of the Regulation envisages that the consumer shall not
have insurance regarding the loan without the written consent of the
consumer, or his consent given, through permanent data storage form.
Thus, the necessity of having direct insurance for each consumer loan,
and the subject matter of the insurance being within the initiative of the
lender, have been abolished.
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