Council of the European Union and European Parliament 16 February 1998, Directive 98/7/EC of the European Parliament and of the Council of 16 February 1998 amending Directive 87/102/EEC for the approximation of the laws, regulations and administrative provisions of the Member States concerning consumer credit

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Directive 98/7/EC of the European Parliament and of the Council of 16 February 1998 amends Directive 87/102/EEC to introduce a single, uniform mathematical formula for calculating the annual percentage rate of charge (APR) for consumer credit across all Member States, replacing the transitional provisions that had permitted divergent national methods. Key provisions include the deletion of Articles 1a(3) and 1a(5) of the original Directive, the replacement of Annexes II and III with a standardised equivalence equation and illustrative calculation examples, and the requirement that APR be expressed with accuracy to at least one decimal place using a year presumed to have 365, 365.25, or 366 days, 52 weeks, or 12 equal months of 30.41666 days. Member States are required to bring into force the necessary implementing measures within two years of the Directive's entry into force and to communicate those measures to the Commission.AI