In order to facilitate the emergence of a smoothly functioning internal market with a high level of consumer protection in the area of credit agreements relating to immovable property the European Parliament has adopted Directive 2014/17/EU of 04 February 2014 on credit agreements for consumers relating to residential immovable property and amending Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No 1093/2010 as the Member States shall transpose it in their national legislation no later than 21 March 2016.
This Directive should therefore develop a more transparent, efficient and competitive internal market, through consistent, flexible and fair credit agreements relating to immovable property, while promoting sustainable lending and borrowing.
Тhe obligations of Member States to transpose this Directive are limited to credit agreements concluded with consumers, meaning with natural persons who, in transactions covered by this Directive, are acting outside their trade, business or profession.
This Directive should apply irrespective of whether the creditor or credit intermediary is a legal person or a natural person and its scope concerns agreements covering credit for consumers secured by a mortgage or otherwise relating to residential immovable property, including an obligation to carry out a creditworthiness assessment before granting a credit as well as for certain prudential and supervisory requirements.
This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.