Section 2.

Council Directive of 22 February 1990 amending Directive 87/102/EEC for the approximation of the laws, regulations and administrative provisions of the Member States concerning consumer credit (90/88/EEC)

The Council of the European Communities,

Having regard to the Treaty establishing the European Economic Community, and in particular Article 100a thereof,

Having regard to the proposal from the Commission [OJ No C 155,14.6.1988, p. 10.],

In cooperation with the European Parliament [OJ No C 96, 17.4.1989, p. 87 and OJ No C 291, 20.11.1989, p. 50.],

Having regard to the opinion of the Economic and Social Committee [OJ No C 337, 31.12.1988, p. 1.],

Whereas Article 5 of Council Directive 87/102/EEC [OJ No L 42, 12.2.1987, p. 48.] provides for the introduction of a Community method or methods of calculating the annual percentage rate of charge for consumer credit;

Whereas it is desirable, in order to promote the establishment and functioning the internal market and to ensure that consumers benefit from a high level of protection, that one method of calculating the said annual percentage rate of charge should be used throughout the Community;

Whereas it is desirable, with a view to introducing such a method and in accordance with the definition of the total cost of credit to the consumer, to draw up a single mathematical formula for calculating the annual percentage rate of charge and for determining credit cost items to be used in the calculation by indicating those costs which must not be taken into account;