Estonia, Financial Services, Legislation, Loan

The draft law stipulates that a consumer credit contract is null and void if the credit cost rate that the consumer has to pay exceeds the most recent Bank of Estonia six months' average cost rate of consumer loans issued to private individuals by more than three times.

This rate is published each January 1 and July 1. For example, as of August this year, the triple rate is 102.17%.

According to the new regulations, a contract that exceeds the triple credit cost rate of Bank of Estonia would be automatically null and void. When the consumer credit contract is null and void, the consumer will have to pay back the loan he obtained, by the date for which he would have had to repay the credit as a whole, as based on the null and void consumer credit contract.