The Estonian Riigikogu approved on Thursday of the amendments to the law of Obligations Act and other laws that aims to implement the new consumer credit directive in Estonian legislation, LETA/Eesti Päevaleht Online reports.
The amendments that accompany implementing the directive are mainly focused on raising the level of consumer protection in the consumer credit sphere.
The amount of information that credit issuers are obliged to give consumers before any contracts are concluded increases considerably and credit issuers are obliged to counsel consumers before they take a loan so that the consumer could evaluate whether the consumer credit contract offered to him is adjusted to correspond to his needs and financial situation.
The credit issuer is clearly demanded to evaluate the credit repayment ability of the consumer before the credit agreement is concluded.
Rules on advertising consumer credit contracts were also changed.
The law will come in force on July 1 next year while the first provision of the first paragraph comes in force on February 23, 1011.