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Update on Consumer Credit Directive Presentation for ECCG 12 March 2014 Maria Lissowska

Update on Consumer Credit Directive Presentation for ECCG 12 March 2014 Maria Lissowska Unit SANCO.B4. Report on the implementation of Consumer Credit Directive (CCD).

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Update on Consumer Credit Directive Presentation for ECCG 12 March 2014 Maria Lissowska

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  1. Update on Consumer Credit Directive Presentationfor ECCG 12 March 2014 Maria Lissowska Unit SANCO.B4

  2. Report on the implementation of Consumer Credit Directive (CCD) As ECCG was informed at the last meeting on 28 October 2013, the Commission had a legal obligation to prepare a report on implementation of CCD. This report wasprepared on the basis of two sources: • MS transposition check done by the Commission; and • two studies undertaken for the Commission (on the consumer credit market and on regulatory choices made by the Member States). The report willmostprobablybeadopted in April, afterbeingtranslatedinto the EU languages (first DE and FR).

  3. Conclusions of the report - 1 In principle, no major problems were found with Member States' transposition of CCD into national law. With regard to MS' regulatory choices, the impact was more difficult to assess, due to: • The recent implementation of the CCD; • The differing pre-CCD situation in MS; • The different interests of stakeholders interviewed (business vs. consumers)

  4. Conclusions of the report - 2 Lack of compliancewith provisions of the CCD by creditors in differentMember States: • Non-compliance with information disclosure obligations in a large proportion of advertisements. • Creditors appear reticent or unwilling to inform consumers about their rights and to provide SECCI at the pre-contractual stage. Unsatisfactoryenforcement of CCD obligations by MS: • A part of regulators did not check whether lenders actually fulfill their obligtions. • Only a minority of regulators have takenenforcement actions.

  5. Conclusions of the report - 3 Consumerslackfinancialawareness, and in particularsufferfrom: • Lowfinancialliteracy; • Insufficient knowlege of the details of their own credit contract; • Low propensity to complain when facing problems with their creditor.

  6. Enforcement follow-up by the Commission The Commission will continue monitoring the enforcement of the CCD by MS. Three meetings with MS representatives have already taken place, to enable taking stock of practices and sharing supervisory experience. Another meeting is foreseen for Autumn 2014.

  7. Consumer credit information campaign • Carried out since May 2013, till February 2014 • Purpose: to raise consumers' awareness of their rights when they take out credit • 5 key rights • Message: "Need credit. Don't just sign. You have rights." • 4 Member States: Cyprus, Ireland, Malta and Spain • Target group: 18 to 35 Evaluation of impact ongoing (results in June 2014)

  8. Consumer credit information campaign • Visual material • Print and online advertising • Promotional material • Stakeholder engagement • Launch events • Social media(Facebook and Twitter: @EU_ consumers) • Website: http://ec.europa.eu/consumer-credit

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