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European legislative developments in the field of consumer credit

European legislative developments in the field of consumer credit. ALB National Conference. About Eurofinas. The European Federation of Finance House Associations Represents 17 Member Associations bringing together more than 600 finance and credit institutions involved in

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European legislative developments in the field of consumer credit

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  1. European legislative developments in the field of consumer credit ALB National Conference

  2. About Eurofinas The European Federation of Finance House Associations Represents 17 Member Associations bringing together more than 600 finance and credit institutions involved in • Consumer Credit Lending • Personal Consumption • Motor Finance • Mortgage Credit Lending • Industrial Equipment Finance Activities of the Federation

  3. Where to Next? Trialogue Procedure Preliminary Work 1st Reading CCD Review CRD IV Package Review of the IMD Shadow Banking (SB) Mortgage Credit Directive (MCD) EU Data Protection Reform (DPR) Review of the AML Directive Directive on ADR & ODR

  4. Main issues at stake Scope, definition of liquid assets, retail exposures Scope, consistence with CCD, credit intermediaries Trade bodies’ ADR systems, flexible procedural rules for ADR Proportionate treatment for various types of intermediaries and products Specificities of financial services Scope, proportionality of review, retained flexibility Scope, extension of CRD IV package, securitization Definition of low risk transactions, PEPs, beneficial owners CRD IV MCD ADR IMD DPR CCD SB AML

  5. Where to Next? The IMD 2 (1) IMD 2 12/2002 01/2005 11/2010 12/2010 02/2011 02/2011 – 07/2012 03/07/2012 Deadline transposition Discussions in Parliament/Council Deadline public consultation Publication Proposal IMD 2 IMD 1 adopted Public Hearing CEIOPS advice Internal EC work • Including: • - Studies • - Impact Assessment • Collecting data from • stakeholders

  6. Where to Next? Provision of all types of insurance products (life/non-life) by all types of distribution channels : 1) Intermediaries (incl. credit institutions and their partners) 2) Insurance undertakings 3) Loss adjusters and professional management of claims Differentiated regimes foreseen Limited product exemptions Minimum harmonisation The IMD 2 (2)

  7. Where to Next? Registration Professional qualifications Information to be provided to customers Conflicts of interest and transparency Sanctions Delegated acts The IMD 2 (3)

  8. Where to Next? General Data Protection Regulation Applicable to all sectors Police and Criminal Justice Data Protection Directive Only applicable to competent authorities The DPR

  9. Where to Next? Enhanced rights for data subjects: Transparency Consent Information Access Right to be forgotten Right to data portability Key Features (1)

  10. Where to Next? Enhanced obligations for data controllers and processors: Data protection by design and by default Data protection officer Data protection impact assessment Prior autorisation/consultation Data breach notifications Key Features (2)

  11. Where to Next? Principles relating to data processing Lawfulness of processing Conditions for consent Right to be forgotten Delegated acts Eurofinas main concerns

  12. Where to Next? The EU Consumer Credit Sweep Initiative APRC Guidelines The European Parliament’s own-initiative report What to expect next? The CCD Review

  13. Where to Next? EU enforcement action to check compliance with consumer protection laws 562 websites were checked, only 30% passed the sweep test for compliance with the relevant EU consumer rules Most common problems identified: Missing information in consumer credit advertising (APRC) Omission of key information on the offer Misleading presentation of the costs Final Report in January 2013 The Consumer Credit Sweep Initiative

  14. Where to Next? Comitology Procedure (Art. 25 CCD) Calculation Assumptions (Directive 14 Nov. 2011) APRC Interpretative Guidelines Potential Risks: In case of litigation Inclusion in the CCD review process APRC Guidelines

  15. Where to Next? General approach towards the CCD review Points of attention (1): Foreign currency loans Right of withdrawal – linked credit agreements Lack of clarity in relation to ancillary services Advertising and marketing practices European Parliament’s report

  16. Where to Next? European Commission’s transposition check London Economics study on the consumer credit market Civic Consulting study on consumers over-indebtedness European Commission’s Working Document EBA Guidelines What to expect next?

  17. Many thanks Tanguy van de Werve t.vandewerve@eurofinas.org +32 2 778 05 60 www.eurofinas.org

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