The existing CCD has introduced a number of benefits for consumers, however, it is now somewhat outdated due to various technological and market developments since its adoption.
Following the rise in digital lenders and increasing online
distribution of consumer credit, the European Commission proposed a
revision of the Consumer Credit Directive (CCD) in June 20211. The first
European Consumer Credit Directive was implemented in 1987 and was
replaced in 2008 with the current directive, which was designed to
strengthen consumer rights, harmonise the set of rules on financial
institutions, and allow consumers to make informed choices when signing a
credit agreement.
The existing CCD has introduced a number of benefits for consumers,
however, it is now somewhat outdated due to various technological and
market developments since its adoption. The Commission’s proposal aims
to address these developments and improve the regulatory framework for
consumer credit by expanding its scope, introducing pricing rules,
clarifying information requirements, and revising the creditworthiness
assessment. Nevertheless, it remains a question as to whether the
revisions are enough to create a well-functioning single-market for
consumer credit. This policy brief assesses the proposed revisions.
CEPS
© CEPS - Centre for European Policy Studies
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