Credit agreements for consumers

EESC opinion on the Proposal for a Directive of the European Parliament and of the Council on consumer credits - COM(2021) 347 final – 2021/0171 (COD)

Key points

The EESC :

• points out that there are still areas where the directive lacks ambition or does not ensure a fair balance between its objectives and the solutions proposed. Furthermore, the Committee believes that the solutions put forward in the Directive should focus more on the impact of digitalisation, the increased use of digital devices and the provision of green consumer loans to help consumers make more sustainable purchases;
• notes that the evidence on the origins of over-indebtedness clearly shows that a cap on interest rates provides tangible benefits to consumers, particularly vulnerable consumers;
• considers that the obligation on all creditors to carry out a thorough assessment of consumers' creditworthiness should be further clarified;
• considers that the text of the Consumer Credit Directive should be revised to ensure equal treatment of all creditors, from the authorisation procedure to operational rules and obligations, in order to ensure a level playing field for all competitors;
• believes that the Commission should further analyse the pre-contractual information requirements in order to strike the right balance between the need for and relevance of consumer information and the most effective and flexible way of presenting it, while taking into account the digitalisation of the whole process, and
• recommends that the Commission clarify the text of the Consumer Credit Directive with regard to early repayment.

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