Consumer Rights Directive
Navigation log
Table of Contents
Chapter I – Subject matter, definitions and scope
Chapter II – Consumer information for contracts other than distance or off-premises contracts
Chapter III – Consumer information and right of withdrawal for distance and off-premises contracts
Chapter IIIa – Rules concerning financial services contracts concluded at a distance
Chapter IV – Other consumer rights
Chapter V – General provisions
Chapter VI – Final provisions
Recitals (67)
Annexes
Chapter IIIa – Rules concerning financial services contracts concluded at a distance
Article 16d
Adequate explanations
1. Member States shall ensure that traders are required to provide adequate explanations to the consumer concerning the proposed financial services contracts that make it possible for the consumer to assess whether the proposed contract and ancillary services are adapted to his or her needs and financial situation. Such explanations shall be provided to the consumer free of charge and prior to the conclusion of the contract. The explanations shall include the following elements:
(a) the required pre-contractual information;
(b) the essential characteristics of the proposed contract, including possible ancillary services;
(c) the specific effects that the proposed contract may have on the consumer, including, where applicable, the consequences of payment default or late payment by the consumer.
2. Member States may specify the manner in which, as well as the extent to which, the explanations referred to in paragraph 1 are given. Member States may adapt the manner and the extent to the circumstances of the situation in which the financial service is offered, the person to whom it is offered and the nature of the financial service offered.
3. Member States shall ensure that, in the event that the trader uses online tools, the consumer shall have a right to request and to obtain human intervention at the pre-contractual stage, and in justified cases after the distance contract has been concluded, in the same language as that used for the pre-contractual information provided in accordance with Article 16a(1).
4. As regards compliance with the adequate explanation requirements laid down in this Article, the burden of proof shall be on the trader.
5. Where another Union act governing specific financial services contains rules on the adequate explanations to be provided to the consumer, only rules on the adequate explanations of that Union act shall apply to those specific financial services, unless otherwise provided in that Union act.
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