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Article (16) Consumer Protection

C 112/2018 Effective from 24/4/2018
  1. 16.1 The commercial name of a Finance Company must not include the terms "bank", "investment company", "commercial company" or any other term that might suggest anything outside the scope of the Financing activities outlined in Article 10 of this Regulation.
     
  2. 16.2 A Finance Company must provide its borrowers with sufficient and transparent information, including costs and risks associated with the loan, to enable the borrower to make an informed assessment of the suitability of the loan to their needs and financial circumstances.
     
  3. 16.3 A Finance Company must adhere to the Central Bank’s regulations regarding loans offered to customers. There should be transparency in preparing and publishing all fees, charges and interest rates (or profits) including the method of calculating interest / profit.
     
  4. 16.4 Borrowers should be provided with information setting out the total cost of the loan during the loan period. The borrower must sign each page of the loan documentation and be given a copy signed by both the Finance Company and the borrower.
     
  5. 16.5 A Finance Company must use official documents on all transactions when dealing with its customers.
     
  6. 16.6 A Finance Company must follow Central Bank guidelines for banks and finance companies pertaining to consumer protection. These guidelines are occasionally updated by the Central Bank.