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New rules to safeguard homeowners on credit
The Malta Competition and Consumer Affairs Authority for (MCCAA) is to issue new rules that will regulate domestic credit for residential property, for public consultation.
The aim of the rules is to ensure the highest level of protection for borrowers. The rules are part of a proposed European Commission directive, parliamentary secretary for public information Chris Said said.
The directive was proposed to ensure that consumers are protected against the risks of borrowing from banks, increase information available for consumers borrowing credit, and a better evaluation of borrowers’ ability to repay the debt.
Said said the proposal will create a uniquely efficient and competitive market for consumers and creditors. On 1 October 2010, new consumer credit rules allowed borrowers to repay their credit without interest or penalties before the time agreed.
