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.
Financial Education: A high priority
Our latest content on Consumer Finance
October 26, 2022
ESBG welcomes EU Commission’s legislative proposal on instant payments
The European Savings and Retail Banking Group (ESBG) welcomes the European Commission’s legislative proposal on instant payments announced today. The ESBG hopes that the initiative will strengthen…
October 25, 2022
ESBG and EACB congratulate EU Commission’s Expert Group on its Open Finance report
The European Savings and Retail Banking Group (ESBG) and the European Association of Co-operative Banks (EACB) congratulate the Expert Group on European financial data space of the European…
July 13, 2022
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…
March 4, 2022
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…
February 4, 2022
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…
January 25, 2022
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…