Continuous credit means consumer credit that the consumer can use constantly up to the agreed limit, without needing a separate decision made by the lender. For example a credit card is a continuous credit.
The consumer’s right to terminate a contract on continuous credit
You can terminate your continuous credit contract at any time. The period of notice cannot be longer than one month. The lender may not charge you any fees for terminating your continuous credit. You do not have to pay back the loan on the day when you terminate the continuous credit or at the end of the period of notice. You can pay it back on the terms set out in the credit contract.
You only have to pay the regular fees charged for the credit contract until the end of the period of notice. If you have paid some of these fees in advance, the lender must return any payments that relate to the period after the termination comes into effect.
The lender’s right to terminate a continuous credit contract
The lender may terminate a contract on continuous credit on the terms set out in the contract. When the lender terminates the credit contract, the period of notice must be at least two months.
The lender must inform the consumer of the termination personally and in a permanent form (in writing or electronically), allowing the consumer to save and reproduce the message without modifications.