(1) A creditor and, where applicable a mortgage credit intermediary, shall provide adequate explanations to the consumer on the proposed credit agreement and any ancillary services, in order to place the consumer in a position enabling him or her to assess whether the proposed credit agreement and ancillary services are adapted to his or her needs and financial situation; this and the next following paragraph are subject to paragraph (3).
(2) The explanations shall, where applicable, include:
(a) the pre-contractual information to be provided in accordance with:
(i) in the case of creditors, the information specified in Regulation 15;
(ii) in the case of mortgage credit intermediaries, the information specified in Regulations 15 and 16;
and
(b) in all cases -
(i) the essential characteristics of the products proposed;
(ii) the specific effects the products proposed may have on the consumer, including the consequences of default in payment by the consumer; and
(iii) where ancillary serv
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