No L 42/48 Official Journal of the European Communities 12. 2. 87 COUNCIL DIRECTIVE of 22 December 1986 for the approximation of the laws, regulations and administrative provisions of the Member States concerning consumer credit (87/102/EEC) THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular Article 100 thereof, Having regard to the proposal from the Commission ('), Having regard to the opinion of the European Parli- ament (9, Having regard to the opinion of the Economic and Social Committee (%), Whereas wide differences exist in the laws of the Member States in the field of consumer credit; Whereas these differences of law can lead to distortions of competition between grantors of credit in the common market ; Whereas these differences limit the opportunities the consumer has to obtain credit in other Member States ; whereas they affect the volume and the nature of the credit sought, and also the purchase of goods and services ; Whereas, as a result, these differences have an influence on the free movement of goods and services obtainable by consumers on credit and thus directly affect the func- tioning of the common market; Whereas, given the increasing volume of credit granted in the Community to consumers, the establishment of a common market in consumer credit would benefit alike consumers, grantors of credit, manufacturers, wholesalers and retailers of goods and providers of services; Whereas the programmes of the European Economic Community for a consumer protection and information policy () provide, inter alia, that the consumer should be protected against unfair credit terms and that a harmoni- zation of the general conditions governing consumer credit should be undertaken as a priority ; () OJ No C 80, 27. 3. 1979, p. 4 and 0] No C 183, 10. 7. 1984, p. 4. () OJ No C 242, 12. 9. 1983, p. 10. () O] No C 113, 7. 5. 1980, p. 22. () OJ No C 92, 25. 4. 1975, p. 1 and OJ No C 133, 3. 6. 1981, p. 1. Whereas differences of law and practice result in unequal consumer protection in the field of consumer credit from one Member State to another; Whereas there has been much change in recent years in the types of credit available to and used by consumers ; whereas new forms of consumer credit have emerged and continue to develop; Whereas the consumer should receive adequate informa- tion on the conditions and cost of credit and on his obli- gations ; whereas this information should include, inter alia, the annual percentage rate of charge for credit, or, failing that, the total amount that the consumer must pay for credit ; whereas, pending a decision on a Community method or methods of calculating the annual percentage rate of charge, Member States should be able to retain existing methods or practices for calculating this rate, or failing that, should establish provisions for indicating the total cost of the credit to the consumer; Whereas the terms of credit may be disadvantageous to the consumer; whereas better protection of consumers can be achieved by adopting certain requirements which are to apply to all forms of credit; Whereas, having regard to the character of certain credit agreements or types of transaction, these agreements or transactions should be partially or entirely excluded from the field of application of this Directive ; Whereas it should be possible for Member States, in consultation with the Commission, to exempt from the Directive certain forms of credit of a non-commercial character granted under particular conditions ; Whereas the practices existing in some Member States in respect of authentic acts drawn up before a notary or judge are such as to render the application of certain provisions of this Directive unnecessary in the case of such acts; whereas it should therefore be possible for Member States to exempt such acts from those provi- sions ; Whereas credit agreements for very large financial amounts tend to differ from the usual consumer credit agreements ; whereas the application of the provisions of this Directive to agreements for very small amounts could create unnecessary administrative burdens both for consu- mers and grantors of credit; whereas therefore, agree- ments above or below specified financial limits should be excluded from the Directive ;