The Consumer Credit Directive was implemented in the Netherlands on 25 May 2011. The implementing act introduces a new chapter on consumer credit agreements into the Dutch Civil Code, and amends the Financial Markets Supervision Act (FMSA) and the Consumer Credit Act.
The implementing act changes the existing scope of the FMSA. Whereas previously any credit repayable within three months fell outside the scope of the FMSA, now the exclusion applies only to credit repayable within three months and for which insignificant fees are charged.
Even though the Directive allows for their exclusion, in the Netherlands the following types of agreement will continue to fall under the scope of the FMSA:
- credit secured by a mortgage
- credit for acquiring or retaining property rights in land or in an existing or planned building
- credit involving a total amount of less than EUR 200 or more than EUR 75,000
- credit provided free of interest and other charges
- credit in the form of a permitted overdraft which has to be repaid within one month (but note that this type of credit is subject to a mitigated regime)
- securities-backed credit
In addition, an implementation decree entered into force on 2 June 2011. This decree amends the Decree on the Supervision of Market Conduct FMSA, the Decree on Administrative Penalties Financial Sector and the Costs of Credits Decree.
The new rules apply to all credit agreements concluded on or after 25 May 2011. Agreements concluded before 25 May 2011 are subject to the former rules, except for open-ended agreements. These open-ended agreements are subject to a number of the new consumer credit rules in the Dutch Civil Code, such as the consumer's right to terminate the credit agreement at no cost, and certain information requirements that must be observed during the term of the agreement.