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CCD - Evaluation by the

European Commission

In its adopted position the Council proposes: Background The Commission’s CCD implementation report and the REFIT platform opinion on
CCD both pointed out certain shortcomings of the Directive. The Commission’s Con-
• In relation to the scope, to make reference to specific articles of each legal act (IDD, MiFID, PEPP, etc) the objective sumer Financial Services Action Plan: “Better Products, More Choice”, also called to
of which is to protect consumer interests. The Consumer Credit Directive further explore ways of facilitating cross-border access to consumer credit.
• To make a distinction between domestic and cross-border representative actions, depending on the Member State (CCD) was adopted on 23 April
in which the plaintiff entity was designated as a QE. Additionally, the Commission noted that since 2008, the market has significantly
• To have different qualification criteria for QEs based on whether a domestic or a cross-border representative action 2008 and Member States had evolved and several other EU pieces of legislation were adopted in different fields
is launched. to transpose it into national law also relevant for the provision of consumer credit, such as mortgages, data protec-
• To adopt an opt-out principle in the case of injunction order; no consumer mandate will be required. In the case of before 12 May 2010. The CCD tion, anti-money laundering and payment services. Against this background, the
redress order, it will be left to the discretion of the Member States to decide whether to apply an opt-out or an opt- aims at fostering the integration Commission decided to carry out an evaluation of the CCD, in line with its “Better
in system (whether or not the explicit mandate of the consumer is required). Regulation” principles. The evaluation is looking at, amongst others, the distribu-
of the consumer credit market
tion phases, cross-selling and information disclosure.
BIPAR has regularly contacted the EP Rapporteur and other MEPs on this issue. in the EU and ensuring a high
level of consumer protection by In 2018, the Commission consulted on a Roadmap regarding this evaluation and
BIPAR is concerned about the extension of scope of the Directive to cover financial services legislation. It believes that no in 2019 the Commission consulted stakeholders to express their views on the
analysis has been carried out to determine whether there is a need for collective mechanisms in the sector of financial focusing on transparency and functioning of the CCD. BIPAR responded to both consultations. In its input, BIPAR
services at EU Level. National mechanisms should first be properly assessed before any European mechanism is set up. consumer rights. The Directive recalled that the presence of credit intermediaries always represents an additional
Focus should also be on ADR which offers effective redress for consumers when harmed by a breach of law. applies to credit above €200 and guarantee of consumer protection through professional services and advice.

below €75,000. The Directive
BIPAR is also of the view that the explicit mandate of the consumer concerned - the party that suffered loss or damage BIPAR also provided comments on points where change of the CCD would be ben-
for which compensation is sought- is indispensable to the objective of creating a robust and balanced collective redress regulates certain obligations of eficial (single licence for intermediaries, cross-selling,…) and where no change is
system. Having and being able to prove the explicit consent of the party represented in a legal action is a well-estab- credit intermediaries in relation needed (scope of the CCD, remuneration – adding that in any discussions concern-
lished and undisputed rule of basic procedural law. to consumers. It stipulates ing remuneration of intermediaries, a level playing field between credit intermedi-
aries and direct lenders/other distributors has to be guaranteed).
that a comprehensible set of
information should be given In its work programme for 2020, the Commission states that “the ongoing evalua-
to consumers in good time, tion of the directive will focus on the progress made, its costs and benefits. It will
also focus on whether original objectives and tools of the Directive correspond to
before the contract is concluded
current needs, on monitoring how the Directive works together with other pieces
and also as part of the credit
of legislation and whether the EU intervention has delivered a benefit”.
agreement. This includes pre-
contractual “Standard European Based on the outcome of the evaluation, the Commission’s review is intended to
ensure better consumer information and understanding of consumer credits, tak-
Consumer Credit Information”
ing into account the digitalisation in the provision of such products. It will aim at
and the “Annual Percentage providing better protection for consumers from irresponsible lending practices,
Rate of Charge”. The CCD allows particularly those spread online.
consumers to withdraw from the

credit agreement without giving Next step
any reason within a period of The Commission indicates in its 2020 work programme that legislative measures
14 days after the conclusion of are to be expected for Q2 2021. In the context of the Covid-19 crisis, the Euro-
pean Commission indicated that it will also look again into over indebtedness, the
the contract and they have the
responsibility of creditors and the possible need for stricter rules regarding adver-
possibility to repay their credit tising of credit in this respect.
early at any time.

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