Featured Product

    European Council Adopts Position on Revised Consumer Credit Directive

    June 09, 2022

    The European Council adopted its position, or the general approach, on revision of the Consumer Credit Directive. The revised Directive will repeal and replace the 2008 Directive on consumer credit agreements.

    The revised Directive aims to ensure a higher level of consumer protection in the granting of consumer credit and to promote the deepening of the internal market for such credit through a more harmonized legal framework at the European Union level. The Directive aims to promote responsible and transparent practices by all players involved in consumer credit by ensuring that credit information is presented in a clear and understandable way and is adapted to digital devices. The revised Directive also intends to protect consumers from irresponsible lending practices that could lead to over-indebtedness, promotes financial education and debt advice, and lays out stricter rules for assessing whether or not a consumer will be able to repay their credit. 

    The Council also proposed certain amendments related to the types of loan excluded from the scope, the optional partial derogation for four new products, the clarification of the provisions on pre-contractual information, and other changes. This proportionate regime also adapts pre-contractual information, advertising requirements, and early repayment provisions for credit loans of less than EUR 200, credit in the form of an overdraft facility that has to be repaid within three months, credit agreements free of interest and any other charges, and loan agreements with a maximum repayment term of three months and only insignificant charges. The Council proposed to exclude certain products from the scope, including direct crowdfunding, deferred payments and deferred debit cards, and rental or leasing contracts. With respect to other changes, the Council proposed to improve legal certainty and include clarifications on the creditworthiness assessment, the definition of a maximum time limit to exercise the right of withdrawal, the obligation to protect consumers from excessively high rates, clarifications on the admission procedures, and penalties. As a next step, the Council will have a mandate for further discussions with the European Parliament, as soon as the European Parliament adopts its position on the revised Consumer Credit Directive.

     

    Related Links

     

    Keywords: Europe, EU, Banking, Credit Risk, Consumer Credit Directive, Lending, Consumer Lending, EC, European Council, European Parliament

    Related Articles
    News

    EBA Finalizes Templates for One-Off Climate Risk Scenario Analysis

    The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.

    November 28, 2023 WebPage Regulatory News
    News

    EBA Mulls Inclusion of Environmental & Social Risks to Pillar 1 Rules

    The European Banking Authority (EBA) recently published a report that recommends enhancements to the Pillar 1 framework, under the prudential rules, to capture environmental and social risks.

    October 31, 2023 WebPage Regulatory News
    News

    BCBS Consults on Disclosure of Crypto-Asset Exposures of Banks

    As a follow on from its prudential standard on the treatment of crypto-asset exposures, the Basel Committee on Banking Supervision (BCBS) proposed disclosure requirements for crypto-asset exposures of banks.

    October 19, 2023 WebPage Regulatory News
    News

    BCBS and EBA Publish Results of Basel III Monitoring Exercise

    The Basel Committee on Banking Supervision (BCBS) and the European Banking Authority (EBA) have published results of the Basel III monitoring exercise.

    October 18, 2023 WebPage Regulatory News
    News

    PRA Updates Timeline for Final Basel III Rules, Issues Other Updates

    The Prudential Regulation Authority (PRA) recently issued a few regulatory updates for banks, with the updated Basel implementation timelines being the key among them.

    October 18, 2023 WebPage Regulatory News
    News

    US Treasury Sets Out Principles for Net-Zero Financing

    The U.S. Department of the Treasury has recently set out the principles for net-zero financing and investment.

    October 17, 2023 WebPage Regulatory News
    News

    EC Launches Survey on G7 Principles on Generative AI

    The European Commission (EC) launched a stakeholder survey on the draft International Guiding Principles for organizations developing advanced artificial intelligence (AI) systems.

    October 14, 2023 WebPage Regulatory News
    News

    ISSB Sustainability Standards Expected to Become Global Baseline

    The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.

    September 18, 2023 WebPage Regulatory News
    News

    IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance

    Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.

    September 18, 2023 WebPage Regulatory News
    News

    BCBS Assesses NSFR and Large Exposures Rules in US

    The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.

    September 14, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8938