Consumer credit must be accessible, fairly assessed and without hidden costs

Author: Lucian Goleanu

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Consumer Credit

The Renew Europe Group in the European Parliament welcomes today’s adoption by the Committee on the Internal Market and Consumer Protection of the revision of the Consumer Credit Directive, bringing a number of important elements in, for the benefit of consumers.

Our political group has played a significant role in the negotiations by contributing to a balanced and fair EP position. Renew has introduced a dose of proportionality according to the nature, amount and risk of the credit, also the right to be forgotten and a one-year time limit to request the nullity of the contract, in case the customer wants to use the right of withdrawal.

Another key contribution from Renew Europe is the exclusion from the scope of this directive of deferred debit cards and leasing contracts with no obligation to purchase. Therefore, our group will seek to defend our position concerning the exemption, the need for a proportionate regime and adequate pre contractual information during the upcoming negotiations with the Council.

Renew Europe MEP, Stéphanie Yon-Courtin (Liste Renaissance, France), shadow rapporteur on the revision of the Credit Consumer Directive, said:

“The new rules will allow for more consumer protection in light of digital developments that took place in the last few years and the increased demand for consumer credits. This is a key area with disproportionate impact upon our most vulnerable citizens, so ensuring consumers’ adequate protection whilst supporting the competitiveness of legitimate credit providers is a moral as well as political imperative.

We reached a balanced position to ensure consumer protection while allowing development of the payment markets with consumer friendly products.”