{"id":109905,"date":"2022-06-10T10:35:25","date_gmt":"2022-06-10T08:35:25","guid":{"rendered":"https:\/\/www.cde.ual.es\/?p=109905"},"modified":"2022-06-10T10:53:49","modified_gmt":"2022-06-10T08:53:49","slug":"council-adopts-its-position-on-new-rules-for-consumer-credit","status":"publish","type":"post","link":"https:\/\/www.cde.ual.es\/en\/council-adopts-its-position-on-new-rules-for-consumer-credit\/","title":{"rendered":"Council adopts its position on new rules for consumer credit"},"content":{"rendered":"

The Council agreed its position (\u2018general approach\u2019) on the revision of the consumer credit directive<\/strong>. The revised directive repeals and replaces the current 2008 directive on credit agreements.<\/p>\n

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Since 2008, the increasing digitalisation of the European economy has led to significant changes in the consumer credit market. This has led to the emergence of new products and new actors offering credit through faster and simplified procedures, as well as to changes in consumer preferences when buying online, in particular following the recent COVID-19 crisis.<\/p>\n

As a result, the revision of the consumer credit directive\u00a0modernises<\/strong>\u00a0and\u00a0reinforces<\/strong>\u00a0consumer protection at European level when subscribing to such credit. In particular, the directive aims to promote responsible and transparent practices of all the actors involved in consumer credit, for example by ensuring that\u00a0information on credits<\/strong>\u00a0is presented in a\u00a0clear<\/strong>\u00a0and\u00a0understandable<\/strong>\u00a0way<\/strong>, and is adapted to\u00a0digital devices<\/strong>.<\/p>\n

In addition, to protect consumers from irresponsible lending practices that could lead to over-indebtedness, the directive promotes\u00a0financial education<\/strong>\u00a0and\u00a0debt advice<\/strong>, and regulates the assessment whether or not a consumer will be able to repay their credit.<\/p>\n\n\n\n
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The EU blue economy report 2022<\/a><\/h4>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Types of loans excluded from the scope<\/h3>\n

The Commission proposal significantly broadens the scope of products that will need to comply with stricter credit rules, including small loans below \u20ac200, loans offered through crowdfunding platforms and \u2018buy-now-pay-later\u2019 products.<\/p>\n

However, the Council\u2019s mandate proposes to\u00a0exclude<\/strong>\u00a0certain products from the scope, considering that the directive’s framework is not adapted to them. It excludes\u00a0direct crowdfunding<\/strong>, given that the provisions do not cover all aspects of this type of funding, in particular the protection of lending consumers. Under certain conditions, it also excludes\u00a0deferred payment<\/strong>\u00a0as well as\u00a0deferred debit cards<\/strong>, which are more in line with payment habits.\u00a0Rental<\/strong>\u00a0or\u00a0leasing contracts<\/strong>\u00a0without an obligation or option to buy the property are also excluded in the Council\u2019s text.<\/p>\n

Optional partial derogation<\/h3>\n

For certain of the less risky credit products that now also fall within the scope of the directive, the Council\u2019s mandate suggests an optional\u00a0partial derogation\u00a0<\/strong>from certain provisions. These proportionate rules adapt pre-contractual information, advertising requirements, and early repayment provisions, for the following products:<\/p>\n