Changes of consumer credit law and transposition of the directive nr 2011/90/UE, of November the 14^th

On 1^st of July 2013 it will come into force the latest amendments to the consumer credit regime approved by decree-law nr. 42-A/2013 of 28.3, which transposes the EU Directive establishing additional assumptions for calculating the APR . The law now approved clarifies the existing system of credit agreements for consumers and proceeds to the extension of the scope of the scheme. Thus, it allows the application of some of provisions of this scheme to credit agreements in the form of an overdraft facility with the obligation to reimburse within one month and to overtaking credit in the when the total amount of credit granted is less than € 200, operations of some importance in this lending market. The legislation also updates the rules concerning usury in credit agreements for consumers, defining ceilings for the applicable APR to credit agreements in the form of an overdraft facility with the obligation to refund within a month and the nominal annual rate of overtaking credit. Simultaneously, it is prevented that the lender requires fees in case of exceeding credit. The Decree Law also transferred to the General Directorate of Consumer powers prior committed to the former Commission on the Application of Fines on Economic Matters and Advertising with regard the determination of fines in proceedings on consumer credit advertising.