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EU Consumer Credit Directive: open consultation

On the 14th of January, the European Commission has launched the consultation to gather information on the functioning the Consumer Credit Directive (2008/48/EC).

The development of a deeper and fairer single market is one of the European Commission’s key priorities. As part of this objective, the European Commission is working on facilitating consumers’ access to good quality financial services offered outside their Member State. Regarding consumer credit in particular, the Directive 2008/48/EC of the European Parliament and of the Council of 23 April 2008 on credit agreements for consumers (“the Directive”) has been adopted to encourage cross-border credit agreements while ensuring high protection standards for consumers.

This Directive gives consumers a series of rights such as a right to withdraw from a contract within 14 days, the right of early repayment, and imposes certain obligations like carrying out a creditworthiness process before granting a credit.

This consultation gives an opportunity for consumer associations and civil society to indicate the positive aspects of the Directive, and also put forward suggestions for improving the Directive.
COFACE-Families Europe has been a strong advocate of strengthening the creditworthiness process, especially by identifying clearly the methodology used and the data strictly necessary for carrying out a creditworthiness process. This is especially important in the wake of big data, private credit registers and credit scoring algorithms which are opaque and pose a strong threat of discrimination against consumers.

COFACE-Families Europe will respond to this consultation, in coordination with its member organisations and various European partner organizations and invites its members to respond as well.

For more information, consult the official website of the consultation here: https://ec.europa.eu/info/law/better-regulation/initiatives/ares-2018-3472049/public-consultation_en

Or contact Martin Schmalzried: mschmalzried@coface-eu.org

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