New times, new rules: review of the Consumer Credit Directive


The financial product world is constantly changing, particularly with the arrival of new technologies. This is why the European Commission is readying a new Consumer Credit Directive.

Fast credit, new paymens services, pre-approved loans, platforms, virtual money jars, etc. Every little while a new product or channel comes on the scene. Improving, adapting and drawing up new rules that take into account these changes in the financial product market is necessary. While addressing this transformation is not easy, it is key to ensuring that consumers operate confidently and safely.

In the European Union, the 27 Member States must agree on the directive and, once it is approved, transpose it into their national law.

The main aims of the review of the EU directive governing the marketing of consumer loans are to:

  • Adapt the rules to the new digital environment, to try to ensure, for example, that consumers receive clear information when they arrange loans online.
  • Improve the creditworthiness assessment that banks should perform to decide whether or not they extend the loan and thus prevent irresponsible lending practices and overindebtedness.
  • Promote financial education and improve consumers’ access to advisory services should they face financial problems.

The discussion about the European Commission’s initial proposal will culminate in the new directive’s final wording which, in due course, will be transposed into Spanish law and applied to consumers. If you’re interested, you can find out more about the process hereAbre en ventana nueva.

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