FantasticSearch

1. This Directive applies to credit agreements.

2. This Directive does not apply to the following:

(a) credit agreements which are secured either by a mortgage, or by another comparable security commonly used in a Member State on immovable property or secured by a right related to immovable property;

(b) credit agreements the purpose of which is to acquire or retain property rights in land or in an existing or projected building, including premises used for trade, business or a profession;

(c) credit agreements involving a total amount of credit of more than EUR 100 000;

(d) credit agreements where the credit is granted by employers to their employees as a secondary activity either free of interest or offered at annual percentage rates of charge which are lower than those prevailing on the market and which are not offered to the general public;

(e) credit agreements which are concluded with investment firms as defined in Article 4(1), point (1), of Directive 2014/65/EU of the European Parliament and of the Council or with credit institutions as defined in Article 4(1), point (1), of Regulation (EU) No 575/2013 for the purposes of allowing an investor to carry out a transaction relating to one or more of the financial instruments listed in Section C of Annex I to Directive 2014/65/EU, where the investment firm or credit institution granting the credit is involved in that transaction;

(f) credit agreements which are the outcome of a settlement reached in court or before another statutory authority;

(g) hiring or leasing agreements where an obligation or an option to purchase the object of the agreement is not laid down either in the agreement itself or in any separate agreement;

(h) deferred payments whereby:

(i) a supplier of goods or a provider of services, without a third party offering credit, gives the consumer time to pay for the goods or services supplied by that supplier or provider;

(ii) the purchase price is to be paid free of interest and without any other charges and with only limited charges payable by the consumer for late payments imposed in accordance with national law; and (iii) the payment is to be entirely executed within 50 days of the delivery of the good or service. In the case of deferred payments offered by suppliers of goods or providers of services which are not micro, small or medium-sized enterprises as defined in Recommendation 2003/361/EC where such suppliers or providers offer information society services within the meaning of Article 1(1), point (b), of Directive (EU) 2015/1535 of the European Parliament and of the Council consisting of the conclusion of distance contracts with consumers for the sale of goods or supply of services within the meaning of Article 2, point 7 of Directive 2011/83/EU, this exclusion from the scope of this Directive shall apply only where the following conditions are fulfilled:

(i) a third party is neither offering nor purchasing credit;

(ii) the payment is to be entirely executed within 14 days of the delivery of the goods or services; and (iii) the purchase price is to be paid free of interest and without any other charges and with only limited charges payable by the consumer for late payments imposed in accordance with national law;

(i) credit agreements which relate to the deferred payment, free of charge, of an existing debt;

(j) credit agreements where the consumer is requested to deposit an item as security in the creditor’s safe-keeping and the liability of the consumer is strictly limited to that deposited item;

(k) credit agreements which relate to loans granted to a restricted public under a statutory provision with a general interest purpose, and at lower borrowing rates than those prevailing on the market or free of interest or on other terms which are more favourable to the consumer than those prevailing on the market;

(l) credit agreements existing on 20 November 2026; however, Articles 23 and 24, Article 25(1), second sentence, Article 25(2) and Articles 28 and 39 shall apply to all open-end credit agreements existing on 20 November 2026.

3. Notwithstanding paragraph 2, point (c), this Directive applies to credit agreements involving a total amount of credit of more than EUR 100 000 which are not secured either by a mortgage, or by another comparable security commonly used in a Member State on immovable property or by a right related to immovable property, where the purpose of those credit agreements is the renovation of a residential immovable property.

4. In the case of credit agreements in the form of overrunning, only the following Articles shall apply:

(a) Articles 1, 2, 3, 17, 19, 25, 31, 35, 36 and 39 to 50; and (b) Article 18, unless otherwise determined by Member States.

5. Member States may exempt from the application of this Directive credit agreements in the form of deferred debit cards:

(a) which are provided by a credit or payment institution;

(b) under the terms of which the credit has to be repaid within 40 days; and (c) which are free of interest and with only limited charges for the provision of the payment service.

6. Member States may determine that only Articles 1, 2, 3, 7, 8, 11, 19 and 20, Article 21(1), first subparagraph, points (a) to (h) and (l), Article 21(3) and Articles 23, 25 and 28 to 50 apply to credit agreements which are concluded by an organisation whose membership is restricted to persons residing or employed in a particular location or to employees and retired employees of a particular employer, or to persons meeting other qualifications laid down under national law as the basis for the existence of a common bond between the members and which fulfils all of the following conditions:

(a) it is established for the mutual benefit of its members;

(b) it does not make profits for any other person than its members;

(c) it fulfils a social purpose required by national law;

(d) it receives and manages the savings of, and provides sources of credit to, its members only;

(e) it provides credit on the basis of an annual percentage rate of charge which is lower than that prevailing on the market or which is subject to a ceiling laid down by national law. Member States may exempt from the application of this Directive credit agreements concluded by an organisation referred to in the first subparagraph where the total value of all existing credit agreements entered into by that organisation is insignificant in relation to the total value of all existing credit agreements in the Member State in which the organisation is based and the total value of all existing credit agreements entered into by all such organisations in that Member State is less than 1 % of the total value of all existing credit agreements entered into in that Member State. Member States shall each year review whether the conditions for the application of any such exemption as referred to in the second subparagraph are still fulfilled and shall take action to withdraw the exemption where they consider that they are no longer met.

7. Member States may determine that only Articles 1, 2, 3, 7, 8, 11, 19 and 20, Article 21(1), first subparagraph, points (a) to (h), (l) and (r), Article 21(3) and Articles 23, 25, 28 to 38 and 40 to 50 shall apply to credit agreements between the creditor and the consumer in respect of deferred payment or of repayment methods, where the consumer is already in default or is likely to default on the initial credit agreement and where the following conditions are fulfilled:

(a) the arrangement is likely to avert the possibility of legal proceedings concerning the default of the consumer;

(b) the consumer would not, by entering into the arrangement, be subject to terms less favourable than those laid down in the initial credit agreement.

8. Member States may determine that Article 8(3), points (d), (e) and (f), Article 10(5), Article 11(4) and Article 21(3) do not apply to one or more of the following credit agreements:

(a) credit agreements involving a total amount of credit of less than EUR 200;

(b) credit agreements where credit is granted free of interest and without any other charges;

(c) credit agreements under the terms of which credit has to be repaid within three months and only insignificant charges are payable.