The Riigikogu passed with 77 votes in favour the Act on Amendments to the Law of Obligations Act and Other Acts (761 SE), initiated by the Government. The purpose of the amendment is to transpose into national law the new EU consumer credit directive. The changes due to the transposing of the directive are first of all directed at improving the level of consumer protection in the area of consumer credit. The amendment brings a considerable increase to the amount of information made available to the consumer prior to signing a contract, and the creditor is obliged to provide advice prior to signing, so that the consumer could assess whether the consumer credit contract has been adapted to their needs and financial situation. The amended Act clearly obliges the creditor to assess the ability of the consumer to handle the credit before signing a consumer credit contract, using appropriate data bases if necessary. Provisions of the Advertising Act that regulate advertising of consumer credit contracts were also amended. The amendment stipulates that any advertisement referring to a consumer credit contract must include a typical example to indicate the annual percentage rate of the consumer credit. The amendment includes many other changes aimed at improving consumer protection. The Act enters into force on 1 July 2011, § 1 of the Act enters into force on 23 February 2011. Nobody voted against the Act and nobody abstained.
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