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

    PRA and FPC Finalize Changes to Leverage Ratio Framework in UK

    The Prudential Regulation Authority (PRA) published the final policy statement PS21/21 on the leverage ratio framework in the UK. PS21/21, which sets out the final policy of both the Financial Policy Committee (FPC) and PRA

    October 08, 2021 WebPage Regulatory News
    News

    CFPB Proposes Rule on Small Business Lending Data Collection

    The Consumer Financial Protection Bureau (CFPB) proposed to amend Regulation B to implement changes to the Equal Credit Opportunity Act (ECOA) under Section 1071 of the Dodd-Frank Act.

    October 08, 2021 WebPage Regulatory News
    News

    PRA Decides to Maintain O-SII Buffers for Another Year

    The Prudential Regulation Authority (PRA) decided to maintain, at the 2019 levels, the buffer rates for the Other Systemically Important Institutions (O-SII) for another year, with no new rates to be set until December 2023.

    October 08, 2021 WebPage Regulatory News
    News

    FSB Report Assesses Implementation of Recommendations on Stablecoins

    The Financial Stability Board (FSB) published a progress report on implementation of its high-level recommendations for the regulation, supervision, and oversight of global stablecoin arrangements.

    October 07, 2021 WebPage Regulatory News
    News

    APRA Updates Loan Serviceability Expectations for Home Lending

    In a letter to the authorized deposit taking institutions, the Australian Prudential Regulation Authority (APRA) announced an increase in the minimum interest rate buffer it expects banks to use when assessing the serviceability of home loan applications.

    October 06, 2021 WebPage Regulatory News
    News

    CPMI and IOSCO Consult on Guidance on Stablecoin Arrangements

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) are consulting on the preliminary guidance that clarifies that stablecoin arrangements should observe international standards for payment, clearing, and settlement systems.

    October 06, 2021 WebPage Regulatory News
    News

    EBA and EIOPA Set Out Work Priorities for 2022

    The European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) have set out their respective work priorities for 2022.

    October 05, 2021 WebPage Regulatory News
    News

    MFSA Issues Reporting Updates and Guidance for Banks

    The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0, in addition to the reporting module on leverage under the common reporting (COREP) framework.

    October 05, 2021 WebPage Regulatory News
    News

    EC Publishes Decision on List of Equivalent Third Countries Under CRR

    The European Commission (EC) published the Implementing Decision 2021/1753 on the equivalence of supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures, in accordance with the Capital Requirements Regulation or CRR (575/2013).

    October 04, 2021 WebPage Regulatory News
    News

    EC Rule on Contractual Recognition of Write-Down and Conversion Powers

    EC published the Implementing Regulation 2021/1751, which lays down implementing technical standards on uniform formats and templates for notification of determination of the impracticability of including contractual recognition of write-down and conversion powers.

    October 04, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7552