WSBI ESBG

Consumer Finance

Empowering our members to offer innovative financial products to their customers

Consumer finance is a core activity of WSBI-ESBG members

Credit, mortgages and the way they are marketed and sold are important and for this reason, the Consumer Credit Directive, Mortgage Credit Directive and Distance Marketing in Financial Services Directive are given high priority status in our work. Our overall message is that the same products have to require the same rules by all lenders. New market entrants must be included within the scope of the lending rules, including crowdfunding and peer-to-peer lending.The Mortgage Credit Directive Review is expected in 2023 and a lot of preparatory work is already underway. ESBG believes that consumers should not be overloaded with information, and that only some info is needed before a contract is signed: total amount of credit, the repayment plan, the default interest rate, and information about the typical consequences for the borrower during the tenor of the contract in case of breaches of obligations. The creditworthiness assessment should not be harmonised across the Member States as national specificities (cost of living, taxes etc) must be taken into account. Foreign currency loans have been significantly reduced since the last review, due to (we believe) an error in the definition, which should be cumulative rather than either/or.

The Consumer Credit Directive Review is in full swing, and ESBG believes that a balance must be struck to allow credit lenders the room to continue lending, whilst ensuring high levels of consumer protection. We welcome the overall aim of the European Commission to strengthen consumer protection and include non-bank entities within the CCD so that credit is provided after appropriate assessment of a customer. However, these developments should not be to the detriment of consumers or banks in choosing financial products, and consumers should be guided through the process; given the necessary information without overburdening them. We believe that the creditworthiness assessment should remain as it is in the current text, that the right of withdrawal should have a maximum fixed end, and that notably the lower threshold of 200 EUR should be maintained.

Our latest content on Consumer Finance

On the EU Commission consultation on Distance Marketing in Financial Services Directive review

ESBG supports the scenario chosen by the EU Commission for its proposal to retain the relevant and still valid elements of the DMFSD by integrating them into a broader directive (the Consumer Rights…

Credit Card

Customer protection

The ESBG, together with eight other associations has written to the European Data Protection Board, the European Commission and the European Banking Authority about the EDPB Guidelines 06/2020 on the…

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Proportional and clear guidelines would ensure citizens’ data protection and foster innovation

The ESBG, together with eight other associations has written to the European Data Protection Board, the European Commission and the European Banking Authority about the EDPB Guidelines 06/2020 on the…

ESBG welcomes the financial competence framework by the European Commission and OECD

The European Savings and Retail Banking Group (ESBG) applauds and welcomes the ‘Financial competence framework for adults in the European Union’ launched today by the European Commission (EC) and the…

Isidro Fainé re-elected as WSBI president

Isidro Fainé, president of “la Caixa" Banking Foundation, was re-elected as president of the World Savings and Retail Banking Institute (WSBI) at the organisation's 28th General Assembly, held in…

On the EU Commission evaluation of the Mortgage Credit Directive

After the ESBG meeting with the European Commission on 30 September, we have recently shared some documents as a follow-up. ESBG members finalised a position paper on the MCD review, and shared two…