The evaluation of the Consumer Credit Directive: EBF’s views

EBF advisor: Elona Morina
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Publication date: 28 April 2020

The EBF believes that the Directive on consumer credit provides a sound and solid framework on fair access to credit, together with clear provisions on consumer protection. The credit worthiness assessment requirements, for example, establish a set of rules ensuring, not only consumer protection, but also that costs of over indebtedness and any resulting non-payment of loans be minimised.

For the above-mentioned reasons, we suggest that any effective evaluation of the Directive should focus on:

1. the enforcement and adequate implementation of existing rules to reduce regulatory fragmentation rather than on additional requirements;
2. the supervision of all market participants to ensure the same level of consumer protection;
3. the provision of a future-proof and technology-neutral text that enables the Directive to be effective despite the fast technological developments;
4. such adequate implementation assessment should also focus on gold-plating practices from Member States, since the provisions of the Directive should be consistently applied throughout the EU, without creating fragmentation that has a detrimental effect to the creation of an EU level playing field, and can lead to unfair competition among Member States.

The EBF strongly suggests that, if nevertheless a review should be pursued by the European Commission, it should target only the elements of the Directive where a clear benefit for both consumers and lenders can be achieved. More specifically, the changes should aim at streamlining the existing rules in order to address the inefficiencies brought by standardised provision of information and integrate the context of fast-moving technology to adapt a more technology-neutral approach.

For more information:

Elona Morina, e.morina@ebf.eu
Policy Adviser – Retail & Innovation