(1) Section 494 subsections (1) to (3) and subsection (6) sentence 2 second half-sentence, is not to be applied to instalment payment transactions. If the consumer submits their offer to conclude a contract in distance selling on the basis of a sales prospectus or of a comparable electronic medium, from which the cash payment price, the borrowing rate, the effective annual interest rate, a redemption plan based on example total amounts, as well as the securities to be provided and insurance are evident, section 492 (1) also is not to be applied if the trader informs the consumer of the content of the contract on a durable medium at the latest without undue delay following conclusion of the contract.
(2) The instalment payment transaction is void if the requirement as to written form in section 492 (1) is not observed or if one of the items of information required by Article 247 sections 6, 12, and 13 of the Introductory Act to the Civil Code (Einführungsgesetz zum Bürgerlichen Gesetzbuche) is omitted in the contract. Notwithstanding a defect under sentence 1, the instalment payment transaction becomes valid if the thing is delivered to the consumer or the performance is rendered. However, the maximum rate of interest on the cash payment price is the statutory rate of interest if the information on the total amount or the effective annual rate of interest is missing. If a cash payment price is not stated, then in case of doubt the market price is deemed to be the cash payment price. If information on the effective annual rate of interest states a rate that is too low, the total amount is reduced by the percentage by which the effective annual rate of interest is too low.
(3) In derogation from sections 491a and 492 (2) of the present Code, and in derogation from Article 247 sections 3, 6, and 12 of the Introductory Act to the Civil Code (Einführungsgesetz zum Bürgerlichen Gesetzbuche), the cash payment price and the effective annual interest rate do not need to be stated in the pre-contractual information or in the contract if the trader delivers things or renders performance only against payments in instalments. In cases covered by section 501, the calculation of the cost reduction is to be based on the statutory interest rate (section 246). A right to compensation for early repayment of the loan is excluded.