1.This Directive applies to credit agreements.
2.For the purpose of this Directive: (a) 'consumer'‘consumer’ means a natural person who, in transactions covered by this Directive, is acting for purposes which can be regarded as outside his trade or profession; (b) 'creditor'‘creditor’ means a natural or legal person who grants credit in the course of his trade, business or profession, or a group of such persons; (c) 'credit‘credit agreement'agreement’ means an agreement whereby a creditor grants or promises to grant to a consumer a credit in the form of a deferred payment, a loan or other similar financial accommodation. Agreements for the provision on a continuing basis of a service or a utility, where the consumer has the right to pay for them, for the duration of their provision, by means of instalments, are not deemed to be credit agreements for the purpose of this Directive; ▼M1 (d) 'total‘total cost of the credit to the consumer'consumer’ means all the costs of the creditcosts, including interest and other chargescharges, directly connected withwhich the creditconsumer agreement,has determinedto inpay accordance withfor the provisions or practices existing in, or to be established by, the Member States.credit; (e) 'annual‘annual percentage rate of charge'charge’ means the total cost of the credit to the consumerconsumer, expressed as an annual percentage of the amount of the credit granted and calculated accordingin toaccordance existingwith methodsArticle of1a. the Member States.▼M1