Revision of the Consumer Credit Directive

ABBL Published 16.07.2021

On 30 June 2021, the European Commission (EC) adopted a proposal for the revision of the Consumer Credit Directive. The latter was adopted in 2008 and, after several reports on its implementation over the last years, the EC has decided to adapt this piece of legislation to the digital transformations and the new market players, but also to the more recent EU legislation such as the GDPR and the Mortgage Credit Directive.

Here are some of the main provisions of this proposal:

  • The scope which covers certain consumer credit agreements and crowdfunding credit services: some of the exemptions previously provided for no longer apply, such as the minimum amount (previously set at EUR 200), rental agreements with the option to purchase goods and services, overdraft facilities, interest rate credit, etc. 200, leasing agreements with the option to buy goods and services, overdraft facilities, free interest credit without charges or credit to be repaid within 3 months with insignificant charges only
  • The cross-border dimension of consumer credit
  • Pre-contractual obligations
  • Standard information
  • Advisory services
  • Tying and bundling practices
  • Assessment of creditworthiness

The proposal marks the beginning of the legislative work. Discussions in the Council and the European Parliament start this week.

The ABBL is following developments closely and will contribute to the debate.

By Aurélie Cassou

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