Summary

Taking credit is considered a normal consumer behaviour today, which enables an informed consumer to improve their standard of living, if the conditions are favourable. Although serious socio-economic problems will occur if the consumer is unable to perform their obligations arising from the credit contract and encounters solvency problems. Regrettably, the statistics show that there are a significant number of such consumers in Estonia, and this number has grown constantly.

This is a circle of problems, which the regulator has also acknowledged and tried to actively deal with over the last few years. On 18 February 2015, the Riigikogu (Parliament) adopted, among other drafts, the draft Act to amend the Code of Civil Procedure and other acts (844 SE) and the draft Act to amend the Law of Obligations Act, Consumer Protection Act and Study Allowances and Study Loans Act (786 SE), which established the annual percentage rate of charge (APRC) of a consumer credit contract and the maximum amount of expenses, the reimbursement of which can be requested from the consumer.

This article explains the background and purpose of the amendments soon to be enacted in the Law of Obligations Act and gives an overview of their content; whereas special attention is paid to the issues that caused the majority of disputes in the course of proceeding the drafts.