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Finance

Consumer credit

EU rules on consumer credits to strengthen consumer rights when concluding a credit agreement.

What the EU is doing and why

EU rules on consumer credit are designed to strengthen your consumer rights and to help you make an informed choice if you sign up to a credit agreement.

Before you sign an agreement, the lender must

  • give you standardised information to make it easy for you to compare offers
  • tell you the annual percentage rate of charge (APR) – this tells you the total cost of the credit
  • assess your creditworthiness i.e. your ability to pay back the credit in a sustainable way

You can cancel the agreement within 14 days of signing. You can also repay the loan or credit at any time.

Relevant legislation