Featured Product

    EC Proposes Revisions to Consumer Credit Directive

    June 30, 2021

    EC is proposing revisions to the Consumer Credit Directive (2008/48/EC). The Directive has facilitated the establishment of a harmonized EU framework and provided a solid framework for fair access to credit for European consumers. However, since its entry into force in 2008, digitalization has profoundly changed the decision-making process and consumer habits. The proposed revisions aim to address these developments and provide that information related to credits must be presented in a clearly and adapted to digital devices so that consumers understand what they are signing up for. Furthermore, the proposed Directive will improve rules related to creditworthiness assessment process. The proposal will now be discussed by the European Council and Parliament.

    The proposed Directive lays down a common framework for harmonization of certain aspects of the laws, regulations, and administrative provisions of the member states concerning consumer credits in the form of certain credit agreements for consumers and crowdfunding credit services for consumers. The proposal will repeal and replace the Directive 2008/48/EC. The factsheet, published along with the proposed directive, highlights that EC is revising the existing EU rules on consumer credit to:

    • Include risky loans currently not in scope of the EU regulation on consumer credit
    • Adapt information requirements to make sure they cater for digital devices
    • Make information related to credit offers more clear and avoid information overload for consumers
    • Address practices that exploit consumer behavior such as product tying, pre-ticked boxes or unsolicited credit sales
    • Improve rules on the assessment of consumer creditworthiness—that is, their ability to repay the credit in a sustainable way, to make sure appropriate and proportionate data is used and to prevent over-indebtedness
    • Cap the cost of the credit for consumers
    • Support consumers who experience financial difficulties through forbearance measures and debt advice services
    • Introduce requirements for businesses to put consumers’ needs first and act ethically while ensuring that their staff have an appropriate knowledge and competence on credit

     

    Related Links

    Keywords: Europe, EU, Banking, Credit Assessment, Consumer Credit, Loan Origination, Credit Risk, Lending, EC

    Related Articles
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.

    May 12, 2022 WebPage Regulatory News
    News

    EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA

    The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.

    May 11, 2022 WebPage Regulatory News
    News

    EC Mandates ESAs to Propose Amendments to SFDR Technical Standards

    The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.

    May 11, 2022 WebPage Regulatory News
    News

    EBA Examines Supervisory Practices, Issues Deposits Reporting Template

    The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),

    May 11, 2022 WebPage Regulatory News
    News

    SNB Updates NSFR Forms and FINMA Consults on Operational Risk Circular

    The Swiss National Bank (SNB) published Version 1.2 of the reporting forms (NSFR_G and NSFR_P) on the net stable funding ratio (NSFR) of banks, along with the associated documentation.

    May 10, 2022 WebPage Regulatory News
    News

    US Agency Publications Address Basel, Reporting, and CECL Developments

    The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances

    May 09, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8191