Before signing a contract

Before signing a contract — whether for opening a current account, taking out a mortgage, or accessing another financial service — it is important to understand:

1. the rules intermediaries must follow when presenting their offer;
2. the information documents they are required to provide;
3. the key cost indicators to look out for;
4. how services are offered.

1. Advertising rules

Advertising by intermediaries must:

• be clearly recognisable as advertising;
• refer to the information sheet (foglio informativo) for contractual terms, and explain how to obtain it;
• include the Annual Percentage Rate of Charge (APR) if it mentions the interest rate or any other cost associated with a loan..

2. Pre-contractual information documents

Reading these documents allows you to understand the features, costs and risks of the services offered, as well as your rights as a customer. Use these documents to assess and compare offers.

Key documents include:

• the information sheet;
• the fee information document, for payment accounts (e.g. current accounts) offered to consumers;
• the European Standardised Information Sheet (ESIS-PIES), for mortgages;
• the Standard European Consumer Credit Information (SECCI), for consumer credit;
• the plain-language guides, where applicable.

The intermediary must make these documents available before you sign the contract. 'Making available' means you must be able to obtain a free copy, either in paper form or on another durable medium — that is, a format that allows you to store and reproduce the information.

This obligation applies even if the product is offered outside the intermediary's premises - for instance, in a shop offering financing linked to a purchase - or remotely, such as via the Internet, email, mail or phone.

The documents must contain accurate, clear, complete and comparable information. To ensure this, the intermediary must write in plain language, highlight key concepts, explain technical terms in a glossary, comply with transparency requirements in drafting the documents.

Before signing, you may also request a copy of the contract or a summary document outlining the economic conditions presented in the Information Sheet — tailored to your specific situation.

2.1 The information sheet

The information sheet for a given service must include:

• details about the intermediary;
• a description of the service's features and associated risks;
• the financial terms offered — such as interest rates, fees, additional charges and any penalties;
• contractual clauses regarding your right of withdrawal;
• clauses related to out-of-court dispute resolution mechanisms, such as the Banking and Financial Ombudsman (ABF), which offers a faster alternative to civil court proceedings.

For loan products, the information sheet must also inform you where to find the Average Global Effective Rates (Tasso effettivo globale medio - TEGM) - typically displayed on a noticeboard at the intermediary's premises and published on their website.

For current accounts, the Information Sheet must follow a standard format set by Banca d'Italia to facilitate comparison between different offers.

The Information Sheet must always be up to date - check the publication date and make sure you are reading the latest version.

The content of the contract must be consistent with the information provided in the Information Sheet. Keep a copy in case you need to verify this.

You can find Information Sheets in paper form at the intermediary's premises and digitally on their website.

2.2 The fee information document

When offering a payment account, the intermediary must also provide the Fee Information Document. While the Information Sheet includes all the costs and features of the account, the Fee Information Document highlights the most representative fees and includes the Indicator of Total Costs (ICC) (see below).

2.3 The ESIS (European Standardised Information Sheet - PIES)

The ESIS (called PIES in Italy) is a pre-contractual information document that must be provided when a mortgage is offered to a consumer. It includes, among other things:

• key features of the loan agreement, such as the loan amount, repayment amount, duration, and type of interest rate;
• the APR (Annual Percentage Rate of Charge - TAEG);
• one-off and recurring charges;
• instalment frequency, number of instalments, and their amounts;
• your obligations, such as timely repayment, and the consequences of not fulfilling them;
• your rights;
• instructions on how to file a complaint.

Intermediaries fill in the ESIS (PIES) based on the current market conditions, such as interest rate levels, and on the information you provide regarding your financial situation, your needs and preferences. The information contained in the ESIS is valid up to the date specified in the document.

The ESIS follows a uniform structure across all intermediaries, so you can compare offers easily and choose the one that best suits you. If you have questions, the intermediary must provide all necessary explanations.

2.4 The SECCI

SECCI stands for Standard European Consumer Credit Information (called 'Informazioni europee di base per il credito ai consumatori' in Italy). It is a pre-contractual document that must be provided when you are offered a consumer credit agreement - such as a personal loan, a loan linked to the purchase of a specific product or service, or a salary/pension-backed loan.

To learn more, you can refer to the sections on consumer credit, il personal loans and revolving credit.

2.5 Plain-language guides

These are guides that intermediaries must make available to customers. They explain in clear, simple terms:

• current account;
• mortgage loans;
• consumer credit;
• electronic payments, such as card payments;
• the Banking and Financial Ombudsman (ABF), an out-of-court dispute resolution system;
• the Central Credit Register (CR), a database of credit-related information that intermediaries consult to assess your ability to repay loans.

The guides on current accounts, mortgages, consumer credit, and electronic payments describe the features, costs, and customer rights associated with these services. If an intermediary offers you one of these products, they must provide the relevant guide before you sign the contract.

Intermediaries must also publish these guides on their websites.

3. Two important cost indicators: ICC and APR

What is the ICC?

The ICC (Indicator of Total Costs) gives an estimate of the annual cost of a payment account. Use it to compare different offers. For more details on current account costs, click here.

What is the APR?

The APR (Annual Percentage Rate of Charge – TAEG in Italy) summarises the total yearly cost of a loan. It includes interest, fees, taxes and charges. It is expressed as a percentage of the loan amount — for example, 5per cent. Use the APR to compare loan offers.

The APR is required for certain types of consumer loans, including mortgages, personal loans, loans linked to the purchase of a product or service, salary- or pension-backed loan, agreed overdrafts offered to retail clients, bank advances.

The APR is shown in the Information Sheet and in the summary document. If an advertisement refers to the interest rate or other loan costs, it must also include the APR.

Loan offers also include the nominal annual interest rate (TAN). This rate reflects the annual cost of the loan based only on interest, while the APR includes all charges. As a result, the TAN is always equal to or lower than the APR.

4. If the offer is made outside the intermediary's premises

You may receive an offer from an intermediary in a location other than its registered office, through an external collaborator. For example, a real estate agent might offer you a mortgage to buy a home because they have been authorised by the intermediary to promote that loan. The transparency rules also apply to these so-called off-premises offers.

The person presenting the offer must provide you with the pre-contractual documents. If it involves a loan, they must also give you a document showing the Average Global Effective Rates (TEGM).

The documents must include the name and professional qualification of the person making the offer (e.g. financial promoter or credit intermediary), along with any additional costs associated with the off-premises arrangement.

You may request a copy of the contract before signing, without any obligation to proceed. This copy is provided free of charge, although for certain products, the intermediary may charge an administrative fee. If the terms change, you can request an updated copy.

If the offer is made by post, email, internet or phone

Transparency rules also apply when an offer is made remotely, such as by post, email, internet or telephone.

In these cases, the intermediary must make the following documents available to you: the information sheets; for payment accounts offered to consumers, the fee information documents; the plain-language guides. These must be available

• on the intermediary's website, if they have one;
• using the same channel through which the contract would be sent - e.g. by email, post or phone.

The documents must also state any charges linked to the communication method used and how to contact the intermediary directly.

If the offer is made by phone, the caller must immediately state their identity and the commercial purpose of the call; continue only if you give explicit consent; provide details about the product's features and costs, your right of withdrawal, and where to find additional information.

To send remote offers, the intermediary must obtain your explicit consent. However, this is not required if you have already provided your email or postal address while subscribing to a similar service. Even after giving consent, you can opt out at any time, and the intermediary must include an opt-out address in their messages.

The intermediary must send you the contract on paper or another durable medium, such as a PDF file, which allows you to save and reproduce it in its original form.