Proposal for a Directive on consumer credits

Author (Corporate)
Series Details COM (2021) 347
Publication Date 30/06/2021
Content Type

Summary:

Legislative initiative tabled by the European Commission on 30 June 2021, concerning credit agreements for consumers. It aims to replace and repeal Directive 2008/48/EC.

Further information:

Directive 2008/48/EC - also known as the Consumer Credit Directive - harmonises rules across the European Union (EU) regarding credit granted to consumers who borrow to finance purchases of goods and services. A REFIT Evaluation conducted in 2018-2019 showed that - whilst relevant - the objectives of this Directive were only partially met in a context of fragmented regulatory landscape in the European Union (EU). Fragmentation and imprecise wording were seen to have hampered the functioning of the internal market for consumer credit and not to have guaranteed consistently high level of consumer protection.

In the meantime, digitalisation changed the decision-making process and habits of consumers in general. The lending sector was affected by these changing processes, new market players and new products. It also brought new ways of disclosing information and assessing the creditworthiness of consumers. Digital transformation was also accelerated by the COVID-19 (coronavirus) pandemic. This crisis introduced added challenges to citizens and householders in dealing with their financial situation.

Against this background, the European Commission announced a review of the Consumer Credit Directive in its Work Programme for 2020. This was postponed by the revised Work Programme in the context of the pandemic. The proposal was eventually tabled on 30 June 2021 in the framework of the New Consumer Agenda.

Source Link https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2021:347:FIN
Related Links
Official
EUR-LEX: SWD(2021)170: Staff Working Document accompanying the Proposal - Impact Assessment https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:170:FIN
EUR-LEX: SWD(2021)171: Staff Working Document accompanying the Proposal - Executive Summary of the Impact Assessment https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=SWD:2021:171:FIN
European Commission: Consumer Credit https://ec.europa.eu/info/business-economy-euro/banking-and-finance/consumer-finance-and-payments/retail-financial-services/credit/consumer-credit_en
European Commission: Press Release, 30/06/2021: Consumer protection: Commission revises EU rules on product safety and consumer credit https://ec.europa.eu/commission/presscorner/detail/en/ip_21_3242
European Commission: Press speaking points by Vice-President Jourová on the revision of EU rules on product safety and consumer credit (30 June 2021) https://ec.europa.eu/commission/presscorner/detail/en/speech_21_3361
European Commission: Press speaking points by Commissioner Reynders on the revision of EU rules on product safety and consumer credit (30 June 2021) https://ec.europa.eu/commission/presscorner/detail/en/speech_21_3362

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