|Author (Corporate)||Council of the European Union, European Parliament|
|Series Title||Official Journal of the European Union|
|Content Type||Blog & Commentary, Legislation, News, Policy-making|
Directive (EU) 2023/2225 - adopted by the co-legislators on 18 October 2023 - concerning credit agreements for consumers. It replaces and repeals Directive 2008/48/EC.
This Directive lays down a common framework for harmonisation of certain aspects of the laws, regulations and administrative provisions of the Member States concerning credit agreements for consumers. It replaces and repeals Directive 2008/48/EC - also known as the Consumer Credit Directive.
A REFIT Evaluation conducted in 2018-2019 showed that - whilst relevant - the objectives of the previous 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. The Council of the European Union adopted its general approach on 9 June 2022. The plenary of the European Parliament endorsed a negotiating position on 12 July. An informal agreement between the co-legislators on a compromise text for this file was reached on 2 December. This was formally endorsed by the Parliament on 12 September 2023, followed by the Council on 9 October. The Act was signed by the co-legislators on 18 October 2023 and published in the Official Journal on 30 October 2023.
|Subject Categories||Economic and Financial Affairs, Internal Markets|
|Subject Tags||Consumer Rights | Protection, Financial Services|
|International Organisations||European Union [EU]|