1. Member States shall ensure that traders are required to provide adequate explanations to the consumer concerning the proposed financial services contracts that make it possible for the consumer to assess whether the proposed contract and ancillary services are adapted to his or her needs and financial situation. Such explanations shall be provided to the consumer free of charge and prior to the conclusion of the contract. The explanations shall include the following elements:
(a) the required pre-contractual information;
(b) the essential characteristics of the proposed contract, including possible ancillary services;
(c) the specific effects that the proposed contract may have on the consumer, including, where applicable, the consequences of payment default or late payment by the consumer.
2. Member States may specify the manner in which, as well as the extent to which, the explanations referred to in paragraph 1 are given. Member States may adapt the manner and the extent to the c
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