The European Commission has been evaluating the consumer credit Directive (CCD) since the second semester of 2018. Where does it stand so far ?
The Commission has assessed the national implementation rules, consulted stakeholders through a public consultation this year and is currently finalising its review process. This comes in at the moment where the Commission is preparing work programme suggestions for the new Commission which will take office by the end of the year.
When reviewing the consumer credit Directive the European Commission has identified the following priority areas
- Personal data in light of the GDPR
- Transparency and information provided to consumers
- Credit worthiness assessments
- Quality of the advice given to the consumer
- Cross-border credits which concerns 2% of the market for now
Consumer organisations have also made their voice heard to push for a review which would include
- Extending the scope by suppressing the threshold and including overdrafts
- Cap on interest rates
- Credit-worthiness assessments
- Online distribution
- Cross-selling of products
- Suppress incentives for the sellers
The Commission is currently working on the review and we should know in 6 to 9 months what will be the new features of the CCD review.
The ABBL is following closely this review and is feeding into the consultation and evaluation through the European Banking Association (EBF). Given the large amount of stakeholders and diversity of market players in this topic we can expect interesting and intense discussions in the European Parliament and in the Council in the months to come.
- Commission to finalise its review process by end 2019
- Proposal to be published by mid 2020
By Aurélie CASSOU, Senior Adviser – European Affairs, ABBL