On Nov. 20, MLT FSA issued circular on consumer credit agreements.
MLT FSA issued circular on EU Directive on credit agreements for consumers (Dir 2023/2225, Consumer Credit Directive II) and transposition, relative amendments to Conduct of Business Rulebook for Credit Institutions Offering Retail Products (COBR).
Document dated Nov. 20, 2025, received from MLT FSA Dec. 4, summarized on Dec. 9.
Summary of Circular
Main changes introduced in COBR to reflect Consumer Credit II (CCD II) requirements, and one-year implementation period so CCD II to be implemented by Nov. 20, 2026.
Main changes from CCD II include stricter rules on creditworthiness assessments to prevent over-indebtedness and more transparent pre-contractual information for consumers, e.g. advertising must now present standard information prominently and include explicit warnings, such as borrowing money costs money.
Misleading practices, such as claims that credit will improve financial well being of consumers or that creditworthiness checks are irrelevant, are being prohibited.
Directive requires consumers informed when pricing is determined through automated processing, and must be given right to human intervention and explanations.
Enhances consumers rights to withdraw from agreements via a 14-day period, whereby they can withdraw from a credit agreement without a penalty.
CCD II provides stronger supervision of credit intermediaries and introduces limits on borrowing/interest rates, annual percentage rates of charge, and costs of agreements.
Directive requires creditors to inform consumers of reasons behind a credit application rejection and to ensure timely notification of credit repayment arrears in databases.
Effectiveness
The version of this rulebook is applicable from Nov. 20, 2026.
