Recital 38

(38) To ensure the greatest possible transparency and comparability of offers, pre-contractual information should, in particular, include the annual percentage rate of charge applicable to the credit, determined in the same way throughout the Union. As the annual percentage rate of charge can at this stage be indicated only through an example, such example should be representative. Therefore, it should correspond, for instance, to the average duration and total amount of credit granted for the type of credit agreement under consideration and, if applicable, to the goods purchased. When determining the representative example, the frequency of certain types of credit agreement in a specific market should also be taken into account. As regards the borrowing rate, the frequency of instalments and the capitalisation of interest, creditors should use their usual method of calculation for the consumer credit concerned. In the event that pre-contractual information is provided less than one day before the consumer is bound by any credit agreement or offer, the creditor and, where applicable, the credit intermediary should remind the consumer, between one and seven days after the conclusion of the contract or, where applicable, the submission of the binding credit offer by the consumer, of the possibility to withdraw from the credit agreement.

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Source: EUR-Lex CELLAR · retrieved 2026-07-30 · Text as adopted (Official Journal); later amendments are not incorporated in this text.