The regulation of credit cards in Malta : the consumer credit card contract

Abstract

The aim of this thesis is to set out comprehensive analysis of the curent legislation which regulates Credit Card agreements between banks and their consumers. A Credit Card is a facility which allows its holder to make payments transactions for goods or services on credit. This agreement however, gives rise to several legal implications. This thesis mainly reviews the Credit Card from two aspects – its use as a credit facility and the operation of the card to effect transactions. The relevant legislation aims to set a high level of consumer protection in this field. This protection covers both the pre-contractual phase as well as the period during which the contract is in force. The legislator attempts to achieve this by, inter alia, imposing on banks the duty of disclosure of detailed information. This requirement to provide information is present in the various stages of the bank-customer relationship. The thesis analyses whether the provision of this information has been sufficient to protect consumers from making financial mistakes. Apart from information requirement, the legislation introducing various consumer credit safeguards such as creditworthiness checks and a right to withdraw from the agreement. When considering the operation of the Credit Card to make transactions, this thesis will delve into issues related to unauthorised transactions and liability. The research will also look at the rights and obligations of both parties as defined by legislation. This research analyses how Malta has transposed EU legislation into domestic law and also how local banks have implemented these changes. The author delves into the prevailing banking practice in Malta and suggests areas of reform to enhance consumer protection and improve our banking system.