Recital 38

(38) In addition to the pre-contractual information provided to them by the trader, consumers may still need assistance in order to decide which financial service is the most appropriate for their needs and financial situation. The main objective of the provision of adequate explanation is to ensure that the consumer understands the financial service offered by the trader before he or she signs the contract. In order to ensure that this objective is fulfilled, that adequate explanation should be given in a timely manner which allows the consumer sufficient time to review it prior to the conclusion of the contract. The mere reproduction of the pre-contractual information might not be sufficient and it should therefore be avoided. Therefore, Member States should ensure that before the conclusion of a financial service contract at a distance, traders provide such assistance in relation to the financial services which they offer to the consumer by providing adequate explanations concerning the essential characteristics of the contract, including the possible ancillary services, and the specific effects which that contract may have on the consumer. With regard to the essential characteristics of the contract, the trader should explain the main features of the offer, such as the total price to be paid by the consumer to the trader and the description of the main characteristics of the financial service, and its impact on the consumer, including, where applicable, whether the ancillary services can or cannot be terminated separately and the consequences of such termination. With regard to the specific effects of the proposed contract, the trader should also explain the main consequences of non-compliance with the contractual obligations thereof.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-11 · Text as adopted (Official Journal); later amendments are not incorporated in this text.