|Author (Corporate)||European Commission: DG Justice|
|Series Details||COM (2021) 347|
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.
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.
|Subject Categories||Economic and Financial Affairs, Internal Markets|
|Subject Tags||Consumer Rights | Protection, Financial Services|
|International Organisations||European Union [EU]|