THE POSITION PAPER
BRUSSELS, 3 September 2021 – ESBG responded to the European
Commission’s public consultation on its proposal for a Directive on Consumer
Credits on 30 August. In their
response, ESBG members call on the Commission to broaden the scope of the
definition of ‘lender’ to any kind of lender (including platforms) to ensure
all are supervised at the same level for the same lending activities (including
ESBG also calls for keeping the 200 EUR threshold for the
lower limit of the scope,
as a smaller amount would incur high processing costs disproportionate to the return
(and the same can be said for short-term loans of less than three months).
The Commission announced the draft text of the proposal on
30 June. The previous Consumer Credit Directive (CCD), dating from 2008, does not
consider recent developments which have a wide impact on credit loans, such as
digitalisation. It also overlaps with other legislative texts which have since
been updated. These
changes should be reflected in the CCD text.
On the required information, ESBG members welcome the
Commission’s proposal to provide consumers with simplified, streamlined
pre-contractual information. They are concerned, however, that the newly proposed
one-pager (SECCO) might actually be in addition to the existing SECCI. If so, this
would go against the goal of reducing the information overload on the consumer.
As a solution, ESBG believes that the SECCO should be an alternative to the
SECCI, and not an addition. We also call on the Commission to embrace
digitalisation by allowing information to be provided via a computer or tablet,
and not interpret ‘durable medium’ to mean strictly printed paper.
In addition, regarding the creditworthiness assessment, ESBG
considers that it should be proportional to the type of credit. The
creditworthiness assessment should not be the same, for example, for short-term
overdrafts and a considerable loan. In the case of payment in few instalments,
the consultation of a database of unpaid credits could be sufficient to grant
credits of small amounts and of a duration of less than three months, and this
consultation should become compulsory.
For more details and additional topics, please feel free to
read our position paper here.