Activities of Maria-Manuel LEITÃO-MARQUES related to 2021/0171(COD)
Plenary speeches (1)
Consumer credits (debate)
Shadow reports (1)
REPORT on the proposal for a directive of the European Parliament and of the Council on consumer credits
Amendments (133)
Amendment 138 #
Proposal for a directive
Recital 29
Recital 29
(29) Specific provisions should be laid down on advertising of credit agreements or crowdfunding credit services and certain items of standard information to be provided to consumers in order to enable them, in particular, to compare different offers. Such information should be given in a clear, concise and prominent way by means of a representative example. The standard information should be shown upfront and saliently, . Advertisement plays an important role in the economic environment, including in relation to the provision of credit services. However, certain forms of advertisement can become too intrusive. Stricter rules on targeted advertising a clear way and in an engaging format. It should be clearly legible and adapted to take into account the technical constraints of certain media such as mobile telephone screens. Temporary promotional conditions, such as a teaser rate with lower interest rate for the initial months of the credit agreement or crowdfunding credit services, should be clearly identified as such. Consumers should see all essential information at a glance, even when they watch it on the screen of a mobile telephone. The creditor and, wherre therefore needed, in favour of less intrusive forms of advertising that do not require extensive tracking of the interaction and behaviour of recipients of the service. Therefore, this Directive should ensure that the targeting and amplification of advertisement of credit services are not based on the processing of personal data or inferred data. The targeting and the apmplicable, credit intermediary and provider of crowdfunding credit services’ telephone number and email address should also be communicated to the consumer to enable him or her to contact the creditor, the credit intermediary or provider of crowdfunding credit services quickly and efficiently. A ceiling should be provided where it is not possible to indicate the total amount of credit as the total sums made available, in particular where a credit agreement gives the consumer freedom of drawdown with a limitation with regard to the amount. The ceiling should indicate the upper limit of credit which can be made available to the consumer. In specific and justified cases, in order to improve consumer understanding of information disclosed in advertising of credit agreements or crowdfunding credit services where the medium used does not allow to visually display it, such as in radio advertising, the amount of information disclosed could be reduced. In addition, Member States should remain free to regulate information requirements in their national law regarding advertising of credit agreements or crowdfunding credit services which does not contain information on the cost of the credit.fication of advertisement are both techniques which rely on the processing of personal data. However, while the targeting of an advertisement is a technique that is used by the sponsor of the advertisement to determine the potential audience, that is to say, specific persons or groups of persons considered to be eligible to receive the advertisement, the amplification of an advertisement should be understood as an automated technique, usually generated by algorithms, used by the publisher to select the audience of an advertisement within the potential audience as defined by the sponsor
Amendment 145 #
Proposal for a directive
Recital 29 a (new)
Recital 29 a (new)
Amendment 147 #
Proposal for a directive
Recital 30
Recital 30
(30) In order to be able to make their decisions in full knowledge of the facts, consumers should receive adequate information, for careful consideration at their own leisure and convenience, at least one dayin due time, and in any case prior to the conclusion of the credit agreement or of the agreement for the provision of crowdfunding credit services, including information on the conditions and cost of the credit and on their obligations, as well as adequate explanations thereof. These rules should be without prejudice to Council Directive 93/13/EEC29 . _________________ 29 Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts (OJ L 95, 21.4.1993, p. 29).
Amendment 155 #
Proposal for a directive
Recital 31
Recital 31
(31) Pre-contractual information should be provided through the Standard European Consumer Credit Information form. To help consumers understand and compare offers, a Standard European Consumer Credit Overview form summarising the key elements of the credit should be providesented in addition to the Standard European Consumer Credit Information graphic form and displayed prominently at the beginning of the form, through which consumers should see all essential information at a glance, even on the screen of a mobile telephone. Information should be clear, clearly legible and adapted to the technical constraints of certain media such as mobile telephone screens. It should be displayed in an adequate and suitable way on the different channels, to ensure that every consumer can access information on an equal basis and in line with Directive (EU) 2019/882 of the European Parliament and of the Council30 . For this purpose, the format and presentation of the information should be standardised at EU level through the implementation of regulatory technical standards _________________ 30 Directive (EU) 2019/882 of the European Parliament and of the Council of 17 April 2019 on the accessibility requirements for products and services (OJ L 151, 7.6.2019, p. 70).
Amendment 160 #
Proposal for a directive
Recital 32
Recital 32
(32) To ensure the fullest possible transparency and comparability of offers, pre-contractual information should, in particular, include the annual percentage rate of charge applicable to the credit, determined in the same way throughout the Union. As the annual percentage rate of charge can at this stage be indicated only through an example, such example should be representative. Therefore, it should correspond, for instance, to the average duration and total amount of credit granted for the type of credit agreement or crowdfunding credit services under consideration and, if applicable, to the goods purchased. When determining the representative example, the frequency of certain types of credit agreement or crowdfunding credit services in a specific market should also be taken into account. As regards the borrowing rate, the frequency of instalments and the capitalisation of interest, creditors should use their usual method of calculation for the consumer credit concerned. In case pre-contractual information is provided less than one day before the consumer is bound by any credit agreement or agreement for the provision of crowdfunding credit services, tThe creditor and, where applicable, the credit intermediary or providers of crowdfunding credit services should remind consumers, one day after conclusion of the contract and two days before the expiry of the period, of the possibility to withdraw from the credit agreement.
Amendment 162 #
Proposal for a directive
Recital 39
Recital 39
(39) Despite the pre-contractual information to be provided, the consumer may still need additional assistance in order to decide which credit agreement or crowdfunding credit services, within the range of products proposed, are the most appropriate for his or her needs and financial situation. Therefore, Member States should ensure that creditors and, where applicable, credit intermediaries and providers of crowdfunding credit services provide such assistance in relation to the credit products which they offer to the consumer, by providing adequate explanations about the relevant information in a easily understandable manner before the signing of the contract, including in particular the essential characteristics of the products proposed to the consumer in a personalised manner so that the consumer can understand the effects which they may have on his or her economic situation. Creditors and, where applicable, credit intermediaries and providers of crowdfunding credit services should adapt the way in which such explanations are given to the circumstances in which the credit is offered and the consumer’s need for assistance, taking into account the consumer’s knowledge and experience of credit and the nature of individual credit products. Such explanations should not in itself constitute a personal recommendation.
Amendment 163 #
Proposal for a directive
Recital 40
Recital 40
(40) As highlighted in the Commission Proposal for a Regulation laying down harmonised rules on artificial intelligence (Artificial Intelligence Act)31 , artificial intelligence (AI) systems can be easily deployed in multiple sectors of the economy and society, including cross border, and can circulate throughout the Union. In this context, creditors, credit intermediaries and providers of crowdfunding credit services should be allowed to personalise the price of their offers for specific consumers or specific categories of consumer based on automated decision-making and profiling of consumer behaviour allowing them to assess the consumer’s purchasing powerwithin defined limits and subject to the consumer’s consent. Consumers should therefore be clearly informed when the price presented to them is personalised on the basis of automated processing, so that they can take into account the potential risks in their purchasing decision. Creditors, credit intermediaries and crowdfunding credit services should also inform consumers who receive the offer about the sources of data used and how they have been weighed for the personalisation of the offer. Credit offers should not be based on personal data other than data related to assessing the ability for the consumer to repay their credit and data relevant to assess the consumer’s creditworthiness. Discriminatory price optimisation practices when selling consumer credit products to consumers, based on individual price sensitivity, should be prohibited. Credit offers should not be based on behavioural data, should be objective, and consumers should be given the possibility to effectively compare offers on the basis of relevant pre- contractual information and pre-defined and understandable criteria. _________________ 31 COM/2021/206 final.
Amendment 165 #
Proposal for a directive
Recital 41
Recital 41
(41) As a general rule, tying practices should not be allowed unless the financial service or product offered together with the credit agreement or crowdfunding credit services could not be offered separately as it is a fully integrated part of the credit, for example in the event of an overdraft facility. While, taking into account proportionality considerations, creditors or providers of crowdfunding credit services should be able to require the consumer to have a relevant insurance policy in order to guarantee repayment of the credit or to insure the value of the security, the consumer should have the opportunity to choose his or her own insurance provider. This should not prejudice the credit conditions set by the creditor or the provider of crowdfunding credit services, provided that the insurance policy of that provider has an equivalent level of guarantee as the insurance policy proposed or offered by the creditor or providers of crowdfunding credit services. Moreover, Member States should have the possibility to standardise, wholly or in part, the cover provided by insurance contracts in order to facilitate comparisons between different offers for consumers who wish to make such comparisons. Creditors should not use bundling practices which de facto remove consumer choice and lead to prohibited tying for example due to disproportionate terms and conditions when purchasing the loan or the ancillary product separately. Credit providers or providers of crowdfunding credit services should not be permitted to offer a relevant insurance policy related to the credit agreement of crowdfunding credit services before a 7-day cooling off period in order to ensure that the consumer is able to compare offers. The 7-day cooling off period should however not apply to situations whereby the credit agreement is conditional to the conclusion of an insurance contract.
Amendment 166 #
Proposal for a directive
Recital 44
Recital 44
(44) Credit sales that have not been solicited by the consumers may in some cases be associated with practices that are harmful to the consumer. In this regard, Member States should prohibit unsolicited sales of credit, including non- requested pre-approved credit cards sent to the consumers, or the unilateral increase of a consumers’ overdraft or credit card limit, should be prohibited. and unsolicited credit offers, including visits by the creditor or credit intermediary to the consumer’s place of residence or place of employment, on the occasion of which a credit offer is made to the consumer, without the prior express consent of the consumer; and the creditor or credit intermediary sending to a consumer, by any means of communication, a personalized credit offer, a credit contract, or a payment instrument, without the prior request or express consent of the consumer or a pre- existing legal or contractual obligation. The prohibition of unsolicited sales of credit should however not apply to credit offered at point of sale to finance the purchase of a good or a service, or to offers from creditors to propose a renegotiation of a standing credit agreement with better conditions for the consumer.
Amendment 169 #
Proposal for a directive
Recital 44 a (new)
Recital 44 a (new)
(44 a) Consumers should be able to make free, autonomous and informed decisions or choices when using the service of a creditor. However, certain practices can exploit cognitive biases and prompt consumers to take certain decisions or opt for certain choices. Creditors should therefore be prohibited from deceiving or nudging consumers and from distorting or impairing his or her autonomy, decision-making or choice via the structure, design, function or manner of operation of their online interface nor via any other type of nudging.
Amendment 172 #
Proposal for a directive
Recital 46
Recital 46
(46) It is essential that the consumer’s ability and propensity to repay the credit is assessed and verified before a credit agreement or an agreement for the provision of crowdfunding credit services is concluded. That assessment of creditworthiness should be done in the interest of the consumer, to prevent irresponsible lending practices and over- indebtedness, and should take into consideration all necessary and relevant factors that could influence a consumer’s ability to repay the credit, as well as a consumer’s ability to repay the credit. That assessment, performed in accordance with the obligations laid down in this Directive, should not be understood as a right of the consumer to get credit or a duty of the provider to provide credit. Member States should be able to issue additional guidance on additional criteria and methods to assess a consumer’s creditworthiness, for example by setting limits on loan-to-value or loan- to-income ratios. Member States should ensure that credit products such as social micro- credits are available to the most vulnerable consumers, with repayment plans adapted to their repayment capacity.
Amendment 176 #
Proposal for a directive
Recital 46 a (new)
Recital 46 a (new)
(46 a) Reasonable allowances to the consumers should be determined by the creditor for committed and other non- discretionary expenditures such as the consumers’ current obligations, including appropriate substantiation and consideration of the living expenses of the consumer, his/her household, future events during the term of the proposed credit agreement such as a reduction in income or, were applicable, an increase in the borrowing rate or negative change in the exchange rate, or deferred payments of principal or interest. In the case of variable rates, the maximum possible rate should not be higher than the cap applicable to the APRC.
Amendment 177 #
Proposal for a directive
Recital 47
Recital 47
(47) The assessment of creditworthiness should be based on information defined by this Directive, including information on the financial and economic situation, including income and expenses, of the consumer. The European Banking Authority Guidelines on loan origination and monitoring (EBA/GL/2020/06) provide guidelines on what categories of data may be used for the processing of personal data for creditworthiness purposes, whichtaking into account specificities of the loan, such as nature, maturity and interest rate. These include evidence of income or other sources of repayment, information on financial assets and liabilities, or information on other financial commitments. Personal data, such as personal data found on social media platforms or health data, including cancer data, should not be used when conducting a creditworthiness assessment. Consumers should provide information about their financial and economic situation in order to facilitate the creditworthiness assessment. In principle, cCredit should only be made available to the consumer where the result of the creditworthiness assessment indicates that the obligations resulting from the credit agreement or the agreement for the provision of crowdfunding credit services are likely to be met in the manner required under that agreement. However, should such assessment be negativeThe creditor’s decision and justification for granting the credit should be duly documented. Member States should ensure that the creditworthiness assessment and corresponding repayment plans are tailored to the borrower’s specific profile and repayment capacity, including in case of the most vulnerable consumers. In particular, twhere a creditor or thea provider of crowdfunding credit services can exceptionally make credit available in specific and justified circumstances such as when they have a long-standing relationship wfulfils a social purpose as required by national law, the specificities of the loan such as its nature, maturity and interest rate, as well as the repayment plan should fith the consumer, or in case of loans to fund exceptional healthcare expenses, students loans or loans for consumers with disabilities. In such case, when deciding on whether or not to make the credit available to the consumer, the creditor or the provider of crowdfunding credit services should take into accborrowers’ specific profiles. Creditors should be held liable and be subject to appropriate penalties in case of a breach of the requirements surrounding the creditworthiness assessment. Consumers should have access to proportionate and effective remedies including compensation for damage suffered. Those remedies should be withount the amount and the purposeprejudice to the application of othe credit, and the likelihood that the obligations resulting from the agreement will be met. r remedies available to consumers under Union or national law.
Amendment 186 #
Proposal for a directive
Recital 48
Recital 48
(48) The Proposal for a Regulation laying down harmonised rules on artificial intelligence (Artificial Intelligence Act), establishes that AI systems used to evaluate the credit score or creditworthiness of natural persons should be classified as high-risk AI systems, since they determine those persons’ access to financial resources or essential services such as housing, electricity, and telecommunication services. In view of those high stakes, whenever the creditworthiness assessment involves automated processing, the consumer should be informed of this fact and have a right to obtain human interventionassessment on the part of the creditor or providers of crowdfunding credit services. The consumer should also have the right to obtain a meaningful explanation of the assessment made, of the categories of data taken into account, and of the functioning of the automated processing used, including among others the main variables, the logic and risks involved, as well as a right to express his or her point of view and to contest the assessment of the creditworthiness and the decision after having duly received information on the procedure to follow.
Amendment 190 #
Proposal for a directive
Recital 49
Recital 49
(49) To assess the credit status of a consumer, the creditor or the provider of crowdfunding credit services should also consult credit databases. The legal and actual circumstances may require that such consultations vary in scope. To prevent any distortion of competition among creditors or providers of crowdfunding credit services, they should have access to private or public credit databases concerning consumers in a Member State where they are not established under non- discriminatory conditions compared with creditors or providers of crowdfunding credit services established in that Member State. Member States should facilitate the cross-border access to private or public databases, in compliance with the Regulation (EU) 2016/679 of the European Parliament and of the Council33 . To enhance reciprocity, credit databases should as a minimum hold information on consumers’ arrears in payment, in accordance with Union and national law. and information about the successful repayment of past obligations in accordance with Union and national law. In order to assess the creditworthiness of consumers with little or no credit history, the databases should also include information from different sectors of the economy beyond the traditional credit sector such as from non-banking lenders, telecommunication providers and utilities. Compliance with these obligations should be regularly verified through audits by National Competent Authorities. _________________ 33 Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1).
Amendment 194 #
Proposal for a directive
Recital 51
Recital 51
(51) This Directive does not regulate contract law issues related to the validity of credit agreements or agreements for the provision of crowdfunding credit services. Therefore, in that area, the Member States may maintain or introduce national provisions which are in conformity with Union law. Member States may regulate the legal regime governing the offer to conclude the credit agreement or the agreement for the provision of crowdfunding credit services, in particular when it is to be given and the period during which it is to be binding on the creditor or the provider of crowdfunding credit services. If such an offer is made at the same time as the pre- contractual information provided for by this Directive, it should, like any additional information the creditor or the provider of crowdfunding credit services may wish to give to the consumer, be provided in a separate document. That separate document may be annexed to the Standard European Consumer Credit Information.
Amendment 195 #
Proposal for a directive
Recital 54
Recital 54
(54) In order to ensure full transparency, the consumer should be provided with information concerning the borrowing rate, both at a pre-contractual stage and when the credit agreement or the agreement for the provision of crowdfunding credit services is concluded. During the contractual relationship, the consumer should further be informed of changes to the variable borrowing rate and changes to the payments caused thereby, at least 2 working days in advance. This is without prejudice to provisions of national law not related to consumer information which lay down conditions for, or prescribe the consequences of, changes, other than changes concerning payments, in borrowing rates and other economic conditions governing the credit, for instance rules providing that the creditor or the provider of crowdfunding credit services may change the borrowing rate only where there is a valid reason for such change or that the consumer may terminate the contract should there be a change in the borrowing rate or in other specific economic condition concerning the credit. Variable borrowing rates should not exceed the maximum annual percentage rate of charge caps defined by national law in accordance with the provision laid down in this Directive during the duration of a consumer credit contract.
Amendment 197 #
Proposal for a directive
Recital 55
Recital 55
(55) In case of a significantn overrun exceeding a period of one monthtwo weeks, the creditor should present the consumer without delay with information on the overrun, including the amount involved, the borrowing rate and any applicable penalties, charges or interest on arrears applicable. In case of regular overrunning, the creditor should offer to the consumer advisory services, where available, to help consumers identifying less expensive alternatives, or redirect consumers towards debt advisory services. Member States should put in place a maximum cap on the annual percentage rates of charges which can be applied in case of overrunning and additional fees or charges should be prohibited and should ensure that any fees charged for overrunning should not exceed 0.5% of the amount overrun by.
Amendment 206 #
Proposal for a directive
Recital 62
Recital 62
(62) The consumer should have the right to discharge his or her obligations before the date agreed in the credit agreement. As provided by the Court of Justice of the EU Lexitor ruling,34 the right of the consumer to a reduction in the total cost of the credit in the event of early repayment of the credit includes all the costs imposed on the consumer. In contrast, up-front costs which are fully exhausted at the time of granting of the loan and that corresponded to services effectively provided to the consumer should not be imposed on the consumer. In the case of early repayment the creditor should be entitled to a fair and objectively justified compensation for the costs directly linked to the early repayment, taking into account also any savings thereby made by the creditor. However, in order to determine the method of calculating the compensation, it is important to respect several principles. The calculation of the compensation due to the creditor should be transparent and comprehensible to consumers already at the pre-contractual stage and in any case during the performance of the credit agreement. In addition, the calculation method should be easy for creditors to apply, and supervisory control of the compensation by the competent authorities should be facilitated. Therefore, and due to the fact that consumer credit is, given its duration and volume, not financed by long- term funding mechanisms, the ceiling for the compensation should be fixed in terms of a flat-rate amount. This approach reflects the specific nature of consumer credits and should not prejudice the approach in respect of other products which are financed by long-term funding mechanisms, such as fixed-rate mortgage loans. _________________ 34 Judgment of the Court of Justice of 11 September 2019, Lexitor, C-383/18, ECLI:EU:C:2019:702.
Amendment 208 #
Proposal for a directive
Recital 65
Recital 65
(65) The fixing of caps on interest rates, on annual percentage rates of charge and or the total cost of the credit to the consumer is a common practice in a number of Member States. Such capping has proved beneficial for consumers. In that context, Member States should be able to maintain their current legal regime. However, in an effort to increase consumer protection without imposing unnecessary limits on Member States, caps on interest rates, on annual percentage rates of charge and or on the total cost of the credit to the consumer should be introduced throughout the Union, as it prevents the development of consumer credit products with usurious rates or excessive costs, which often target the most vulnerable consumers and can lead to situations of over-indebtedness. In that context, to ensure a uniform high level of protection for consumers and the effective prevention of irresponsible lending practices across the Union, caps on annual percentage rates of charge to the consumer should be introduced throughout the Union, on the basis of a proposal by the European Banking Authority in coordination with National Competent Authorities. The caps should be differentiated according to the different credit products, take into account national specificities, and be based on market rates. In order to ensure that the caps reflect the aforementioned elements, they should be periodically reviewed and updated..
Amendment 214 #
Proposal for a directive
Recital 69
Recital 69
(69) In order to increase the ability of consumers to make informed decisions about borrowing and managing debt responsibly, Member States should promote measures to support the education of consumers in relation to responsible borrowing and debt management in particular relating to consumer credit agreements, as well as general budget management. This obligation could be fulfilled taking into account the financial competence framework developed by the Union together with the Organisation for Economic Co-operation and Development (OECD). It is particularly important to provide guidance for consumers taking out consumer credit for the first time, and especially on digital tools. In that regard, the Commission should identify examples of best practices to facilitate the further development of measures to enhance consumers’ financial awareness. The Commission may publish such examples of best practices in coordination with similar reports drawn up in view of other Union legislative acts.
Amendment 215 #
Proposal for a directive
Recital 69 a (new)
Recital 69 a (new)
(69 a) Creditors have a key role to play in preventing over-indebtedness through the early detection and support of consumers experiencing or likely to experience financial difficulties. This is why creditors should have processes and policies in place for the early detection and monitoring of such consumers, combining internal warning systems and human analysis. A consumer should be considered in financial difficulty after two missed repayments.
Amendment 218 #
Proposal for a directive
Recital 71
Recital 71
(71) Forbearance measures may include a total or partial refinancing of a credit agreement or a modification of the previous terms and conditions of a credit agreement. Such modification may include, among others: extending the term of the credit agreement; changing the type of the credit agreement; deferring payment of all or part of the instalment repayment for a period; changlowering the interest rate; offering a payment holiday; partial repayments; currency conversion; and partial forgiveness and debt consolidation.
Amendment 219 #
Proposal for a directive
Recital 72
Recital 72
(72) Consumers facing difficulties to meet their financial commitments stand to benefit from specialised help on managing their debts. The objective of debt advisory services is to help consumers facing financial problems and guide them to repay, as far as possible, their outstanding debts, while maintaining a decent level of life and preserving their dignity. This personalised and independent assistance provided by professional operators which are not creditors, credit intermediaries, providers of crowdfunding credit services or credit servicers, may include legal counselling, money and debt management as well as social and psychological assistance. Member States should ensure that quality debt advisory services provided by independent professional operators are made available, directly or indirectly, and free of charge or at a reasonable cost, to consumers, and that where possible, consumers facing difficulties to repay their debts are referred to debt advisory services before that enforcement proceedings are initiated. Member States remain free to maintain or introduce specific requirements for such services.
Amendment 220 #
Proposal for a directive
Recital 76
Recital 76
(76) Assignment of the creditor's rights under a credit agreement or an agreement for the provision of crowdfunding credit services should not have the effect of placing the consumer in a less favourable position. The consumer should also be properly informed when the credit agreement or the agreement for the provision of crowdfunding credit services isCreditors should not be able to transfer credit contracts which can no longer be enforced or have no proven legal basis. The consumer should also be properly informed via a standard notification form no later than 48 hours after the conclusion of the contract formalising the assignedment to a third party. However, where the initial creditor, in agreement with the assignee, continues to service the credit vis-à-vis the consumer, the consumer has no significant interest in being informed of the assignment. Therefore, a requirement at Union level that the consumer be informed of the assignment in such cases would be excessive.
Amendment 222 #
Proposal for a directive
Recital 79 a (new)
Recital 79 a (new)
(79 a) Data on the rate of defaults regarding consumer loans should be collected in order for the European Banking Authority and National Competent Authorities to be able to monitor the quality of consumer credit products offered in national markets and better detect irresponsible lending practices. Such data gathering exercise should be based on a common template introduced by the European Banking Authority with standardised data fields, and a common categorisation of consumer credit products in order to facilitate their comparison.
Amendment 225 #
Proposal for a directive
Recital 81
Recital 81
(81) Current national rules on penalties differ significantly across the Union. In particular, not all Member States ensure that effective, proportionate and dissuasive fines can be imposed on traders responsible for widespread infringements or widespread infringements with a Union dimension. To ensure that Member States’ authorities can impose effective, proportionate and dissuasive penalties in relation to widespread infringements and to, including widespread infringements with a Union dimension that are subject to coordinated investigation and enforcement measures in accordance with Regulation (EU) 2017/2394 of the European Parliament and of the Council36 , fines should be introduced as an element of penalties for such infringements. In order to ensure that the fines have a deterrent effect, Member States should set in their national law the maximum fine for such infringements at a level that is at least 4 % of the creditor, credit intermediary or provider of crowdfunding credit services’ annual turnover in the Member State or Member States concerned. In certain cases, those traders can also be a group of companies. _________________ 36 Regulation (EU) 2017/2394 of the European Parliament and of the Council of 12 December 2017 on cooperation between national authorities responsible for the enforcement of consumer protection laws and repealing Regulation (EC) No 2006/2004 (OJ L 345, 27.12.2017, p. 1).
Amendment 227 #
Proposal for a directive
Recital 81 a (new)
Recital 81 a (new)
(81 a) Current national rules on remedies for consumers differ significantly across the Union. Not all Member States ensure effective and proportionate remedies, including compensation for damage suffered by the consumer. Member States should ensure that consumers are granted effective and proportionate remedies where creditors, the credit intermediary or the provider of crowdfunding credit services have failed to comply with this Directive and have caused damage to consumers.
Amendment 230 #
Proposal for a directive
Recital 87
Recital 87
(87) Member States should apply the measures necessary to comply with this Directive from [OP: please insert date: six months from the transposition deadline]. However, taking into account the difficult economic circumstances created by the COVID-19 pandemic and the specific challenges faced by micro, small and medium undertakings, such undertakings should be provided with sufficient time to prepare for the application of this Directive. Hence, as regards micro, small and medium undertakings, Member States should apply the measures necessary to comply with this Directive from [OP: please insert date: 18 months from the transposition deadline].
Amendment 233 #
Proposal for a directive
Article 2 – paragraph 1 – subparagraph 1
Article 2 – paragraph 1 – subparagraph 1
Articles 1, 2 and 3, Articles 5 to 10, Articles 12 to 23, Articles 26, 27 and 28, Articles 30 to 33, Articles 35 to 37, and Articles 39 to 50 shall also apply to crowdfunding credit services and similar digital services that may be offered in the future where those services are not provided by a creditor or by a credit intermediary.
Amendment 265 #
Proposal for a directive
Article 2 – paragraph 4
Article 2 – paragraph 4
4. In the case of credit agreements in the form of overrunning, only Articles 1, 2 and 3, Article 25, Articles 35 and 36, and Articles 41 to 50 shall apply.
Amendment 287 #
Proposal for a directive
Article 3 – paragraph 1 – point 11
Article 3 – paragraph 1 – point 11
(11) ‘durable medium’ means any instrument, including paper or digital versions of documents, which enables the consumer to store information addressed personally to him or her in a way accessible for future reference for a period of time adequate for the purposes of the information and which allows the unchanged reproduction of the information stored;
Amendment 293 #
Proposal for a directive
Article 3 – paragraph 1 – point 22
Article 3 – paragraph 1 – point 22
(22) ‘early repayment’ means the full or partial discharge of the consumer’s obligations under a credit agreement or crowdfunding credit services, at the request of the consumer, before the date for the final payment agreed in the credit agreement;
Amendment 298 #
Proposal for a directive
Article 3 – paragraph 1 – point 25 a (new)
Article 3 – paragraph 1 – point 25 a (new)
(25 a) ‘deferred debit’ means a deferred payment of an invoice whereby the trader gives its consumer more time to pay the invoice, free of interest and without any other charges, including penalty charges, as agreed between parties, as set out in the supplier’s invoice or as laid down by law, and executed within 30 days of the issuance of the invoice
Amendment 301 #
Proposal for a directive
Article 3 – paragraph 1 – point 25 b (new)
Article 3 – paragraph 1 – point 25 b (new)
(25 b) ‘financial difficulty’ means a situation whereby a natural person has missed two repayments.
Amendment 302 #
Proposal for a directive
Article 3 – paragraph 1 – point 25 c (new)
Article 3 – paragraph 1 – point 25 c (new)
(25 c) ‘targeting of advertising’ means techniques of processing of personal data available to the sponsors of advertisements that are used to determine the potential audience of an advertisement, that is, the specific person or groups of persons that are and are not eligible to be delivered an advertisement based on information observed or inferred from them or revealed by them.
Amendment 303 #
Proposal for a directive
Article 3 – paragraph 1 – point 25 d (new)
Article 3 – paragraph 1 – point 25 d (new)
(25 d) ‘amplification of advertising’ means automated techniques of processing of personal data employed by publishers or other providers of advertising services involved in the publishing and dissemination of advertisements to select the audience of an advertisement within the potential audience as defined by the sponsor of the advertisement.
Amendment 307 #
Proposal for a directive
Article 5 – paragraph 1
Article 5 – paragraph 1
Member States shall require that, when information is provided to consumers in accordance with this Directive, such information is provided without charge to the consumer and regardless of the media used to provide it.
Amendment 318 #
Proposal for a directive
Article 7 – paragraph 1
Article 7 – paragraph 1
Without prejudice to Directive 2005/29/EC, Member States shall require that any advertising and marketing communications concerning credit agreements or crowdfunding credit services are fair, clear and not misleading. Wording in such advertising and marketing communications that may create false expectations for a consumer regarding the availability or the total cost of a credit or, where applicable, the total amount payable by the consumer, shall be prohibited.
Amendment 322 #
Member States shall ensure that the targeting and the amplification of advertising of credit agreements are not based on the processing of personal or inferred data.
Amendment 323 #
Proposal for a directive
Article 7 – paragraph 1 b (new)
Article 7 – paragraph 1 b (new)
Member States shall ensure that only standardised offers can be advertised.
Amendment 324 #
Proposal for a directive
Article 7 – paragraph 1 c (new)
Article 7 – paragraph 1 c (new)
Member States shall prohibit advertising for consumer credit products which: (a) incites over-indebted consumers to seek credit; (b) highlights the ease or speed with which credit can be obtained; (c) states that a promotion is conditional upon taking up credit; (d) specifies that outstanding credit contracts have little or no influence on the assessment of a credit application; (e) suggests that success, social achievement or specific skills can be acquired thanks to credit agreements; (f) offer “grace periods” for the repayment of credit instalments of more than three months
Amendment 351 #
Proposal for a directive
Article 9 – paragraph 1
Article 9 – paragraph 1
1. Member States shall ensure that clear and comprehensible general information about credit agreements or crowdfunding credit services is made available to consumers by creditors or, where applicable, by credit intermediaries or providers of crowdfunding credit services, at all times on paper or on anothera durable medium.
Amendment 353 #
Proposal for a directive
Article 9 – paragraph 2 – point e a (new)
Article 9 – paragraph 2 – point e a (new)
(e a) in the case of credits with a variable borrowing rate, a simulation of the impact on the cost of the credit of reasonable upward changes in the borrowing rate
Amendment 354 #
Proposal for a directive
Article 9 – paragraph 2 – point k
Article 9 – paragraph 2 – point k
(k) a general warning concerning possible consequences of non-compliance with the commitments linked to the specific credit agreement or crowdfunding credit services, displayed at every stage of the purchasing process.
Amendment 357 #
Proposal for a directive
Article 10 – paragraph 1 – introductory part
Article 10 – paragraph 1 – introductory part
1. Member States shall require that the creditor and, where applicable, the credit intermediary or the provider of crowdfunding credit services provide the consumer with the pre-contractual information needed to compare different offers in order to take an informed decision on whether to conclude a credit agreement or crowdfunding credit services on the basis of the credit terms and conditions offered by the creditor or by the provider of crowdfunding credit services and, where applicable, the preferences expressed and information supplied by the consumer. Such pre-contractual information shall be provided to the consumer at least one dayin due time, and in any case before he or she is bound by any credit agreement or offer, or by any agreement or offer for the provision of crowdfunding credit services.
Amendment 366 #
Proposal for a directive
Article 10 – paragraph 1 – subparagraph 1
Article 10 – paragraph 1 – subparagraph 1
Amendment 371 #
Proposal for a directive
Article 10 – paragraph 2
Article 10 – paragraph 2
2. The pre-contractual information referred to in paragraph 1 shall be provided on paper or on another durable mediuma durable medium (digitally by default, or on paper if requested by the consumer) by means of the Standard European Consumer Credit Information form set out in Annex I. All the information provided in the form shall be equally prominent. The creditor shall be deemed to have fulfilled the information requirements in this paragraph and in Article 3, paragraphs (1) and (2) of Directive 2002/65/EC if he or she has supplied the Standard European Consumer Credit Information.
Amendment 401 #
Proposal for a directive
Article 10 – paragraph 3 – point n
Article 10 – paragraph 3 – point n
(n) a warning regarding the consequences of missinged or late payments, including a simulation of related costs;
Amendment 404 #
Proposal for a directive
Article 10 – paragraph 3 – point p
Article 10 – paragraph 3 – point p
(p) the existence of a right of withdrawal and its duration;
Amendment 409 #
Proposal for a directive
Article 10 – paragraph 3 – point s
Article 10 – paragraph 3 – point s
(s) the consumer's right, as set out in paragraph 8, to be supplied, on requestat any time, on a durable medium and free of charge, with a copy of the draft credit agreement, or of the draft agreement for the provision of crowdfunding credit services, provided that the creditor at the time of the request is willing to proceed to the conclusion of the credit agreement or of the agreement for the provision of crowdfunding credit services with the consumer;
Amendment 413 #
Proposal for a directive
Article 10 – paragraph 3 – point v a (new)
Article 10 – paragraph 3 – point v a (new)
(v a) the relevant databases that may be consulted
Amendment 433 #
Proposal for a directive
Article 10 – paragraph 4 – point f
Article 10 – paragraph 4 – point f
(f) costs in the cansequences of missed ofr late payments, including a simulation of related costs;
Amendment 471 #
Proposal for a directive
Article 11 – paragraph 1
Article 11 – paragraph 1
1. For credit agreements referred to in Article 2(5) or (6), the pre-contractual information referred to in Article 10(1) shall, by way of derogation from paragraph 2 of that Article, be provided on paper or on another durable mediuma durable medium chosen by the consumer by means of the European Consumer Credit Information form set out in Annex III. All information provided in that form shall be equally prominent. The creditor shall be deemed to have fulfilled the information requirements in this paragraph and in Article 3, paragraphs (1) and (2) of Directive 2002/65/EC if he or she has supplied the European Consumer Credit Information.
Amendment 493 #
Proposal for a directive
Article 12 – paragraph 1 – introductory part
Article 12 – paragraph 1 – introductory part
1. Member States shall ensure that creditors and, where applicable, credit intermediaries and providers of crowdfunding credit services are required to provide adequate explanations to the consumer on the proposed credit agreements or crowdfunding credit services and any ancillary services that make it possible for the consumer to assess whether the proposed credit agreements or crowdfunding credit services and ancillary services are adapted to his or her needs and financial situation. Such explanations should be given before concluding the credit agreement. The explanations shall include the following elements:
Amendment 497 #
Proposal for a directive
Article 12 – paragraph 1 a (new)
Article 12 – paragraph 1 a (new)
1 a. Member States shall require creditors and where applicable, credit intermediaries and providers of crowdfunding services, to document in what form and when such explanations were provided to the consumer.
Amendment 501 #
Proposal for a directive
Article 13 – paragraph 1
Article 13 – paragraph 1
Member States shall require that creditors, credit intermediaries and providers of crowdfunding credit services inform consumersobtain consent of the consumer before they develop a personalised offer and inform them when they are presented with a personalised offer that is based on profiling or other types of automated processing of personal or inferred data.
Amendment 504 #
Proposal for a directive
Article 13 – paragraph 1 a (new)
Article 13 – paragraph 1 a (new)
Such personalised offer shall not be based on personal data other than financially related data as defined in Article 18 paragraph 2. Member States shall require that creditors, credit intermediaries and providers of crowdfunding credit services communicate to the consumer who receive the offer which sources have been used and how these data have been weighted in the personalisation of the offer.
Amendment 505 #
Proposal for a directive
Article 13 – paragraph 1 b (new)
Article 13 – paragraph 1 b (new)
Member States shall prohibit discriminatory price optimisation practices when selling consumer credit products to consumers, in particular pricing which is based on individual price sensitivity.
Amendment 506 #
Proposal for a directive
Chapter III – title
Chapter III – title
III TYING AND BUNDLING PRACTICES, AGREEMENT FOR ANCILLARY SERVICES, ADVISORY SERVICES AND, UNSOLICITED CREDIT SALES, AND ADDITIONAL PROTECTION REGARDING ONLINE INTERFACES
Amendment 509 #
Proposal for a directive
Article 14 – paragraph 2
Article 14 – paragraph 2
Amendment 512 #
Proposal for a directive
Article 14 – paragraph 3
Article 14 – paragraph 3
Amendment 520 #
Proposal for a directive
Article 14 – paragraph 4
Article 14 – paragraph 4
4. Member States may allow creditors or providers of crowdfunding credit services to require the consumer to hold a relevant insurance policy related to the credit agreement or crowdfunding credit services, taking into account proportionality considerations. In such cases, Member States shall ensure that the creditor or the provider of crowdfunding credit services is required to accept the insurance policy from a supplier different to his or her preferred supplier where such insurance policy has a level of guarantee equivalent to the one the creditor or the provider of crowdfunding credit services has proposed, without modifying the condition of the credit offering to the consumer. In addition, creditors or providers of crowdfunding credit services should not be permitted to conclude the sale of a relevant insurance policy related to the credit agreement before a 7-day cooling off period in order to ensure that the consumer is able to compare offers.
Amendment 524 #
Proposal for a directive
Article 15 – paragraph 2 a (new)
Article 15 – paragraph 2 a (new)
2 a. Member States shall ensure that consumers’ silence or inactivity cannot constitute an agreement for the purchase of ancillary services.
Amendment 527 #
Proposal for a directive
Article 16 – paragraph 2 – introductory part
Article 16 – paragraph 2 – introductory part
2. Member States shall require that the creditor, and where applicable the credit intermediary and the provider of crowdfunding credit services, before the provision of advisory services or the conclusion of a contract for the provision of such services, provide the consumer with the following information on paper or anothera durable medium:
Amendment 531 #
Proposal for a directive
Article 16 – paragraph 3 – point d
Article 16 – paragraph 3 – point d
(d) act in the best interests of the consumer with a view to minimising defaults and arrears;
Amendment 532 #
Proposal for a directive
Article 16 – paragraph 3 – point e
Article 16 – paragraph 3 – point e
(e) give the consumer a record on paper or on anothera durable medium of the recommendation provided.
Amendment 533 #
Proposal for a directive
Article 16 – paragraph 4 – introductory part
Article 16 – paragraph 4 – introductory part
4. Member States mayshall prohibit the use of the terms ‘advice’ and ‘advisor’ or similar terms when the advisory services are being marketed and provided to consumers by creditors or, where applicable, credit intermediaries or providers of crowdfunding credit services.
Amendment 534 #
Proposal for a directive
Article 16 – paragraph 4 – subparagraph 1 – introductory part
Article 16 – paragraph 4 – subparagraph 1 – introductory part
Amendment 540 #
Proposal for a directive
Article 17 – paragraph 1
Article 17 – paragraph 1
Without prejudice to the creditor's possibility to advertise within the limitations set by Articles 7 and 8 of the present Directive, Member States shall prohibit any sale of credit to consumers, without their prior request and explicit agreement. This provision shall not apply to the offer of credit agreements at the point of sale to finance the purchase of a good or a service.
Amendment 548 #
Proposal for a directive
Article 17 a (new)
Article 17 a (new)
Article 17 a Additional protection regarding online interfaces used Without prejudice to Directive (EU) 2019/2161, Directive 2005/29/EC and Council Directive 93/13/EEC, Member States shall adopt measures requiring that creditors, credit intermediary services and providers of crowdfunding credit services do not use the structure, design, function or manner of operation of their online interface nor any type of nudging in a way that could distort or impair consumers’ ability to make a free, autonomous and informed decision or choice
Amendment 550 #
Proposal for a directive
Article 18 – paragraph 1
Article 18 – paragraph 1
1. Member States shall require that, before concluding a credit agreement, or an agreement for the provision of crowdfunding credit services, the creditor or, where applicable, the provider of crowdfunding credit services makes ahas made a positive thorough assessment of the consumer’s creditworthiness. That assessment shall be done in the interest of the consumer, to prevent irresponsible lending practices and over-indebtedness, and shall take appropriate account of factors relevant to: (i) verifying the prospect of the consumer to meet his or her obligations under the credit agreement or the agreement for the provision of crowdfunding credit services. (ii) the risk to the consumer of not being able to meet his/her other obligations. The creditor shall make reasonable allowances for potential negative scenarios in the future, including for example, a reduced income; or where applicable, an increase in the borrowing rate or negative change in the exchange rate, or deferred payments of principal or interest.
Amendment 555 #
Proposal for a directive
Article 18 – paragraph 1 a (new)
Article 18 – paragraph 1 a (new)
1 a. Member States shall ensure that credit intermediaries accurately transmit to the creditor information obtained from the consumer so that the creditworthiness assessment can be carried out.
Amendment 556 #
Proposal for a directive
Article 18 – paragraph 2 – introductory part
Article 18 – paragraph 2 – introductory part
2. The assessment of creditworthiness shall be carried out on the basis of relevant and accurate information on the consumer’s income and expenses and other financial and economic circumstances which is necessary and proportionate such as evidence of income or other sources of repayment, information on financial assets and liabilities, orfollowing the information: (a) evidence of identification; (b) evidence of residence; (c) information on the purpose of the loan; (d) evidence of eligibility for the purposes of the loan; (e) evidence of employment, including the type, sector, status and duration; (f) evidence of income or other sources of repayment, including bonus, commission, overtime, payslips, current bank account statements and audited or professionally verified accounts; (g) information on financial assets and liabilities such as saving account statements and loan statements indicating outstanding loan balances; (h) information on other financial commitments. The information shall be obtained from relevant internal or ex, such as child maintenance, education fees and alimonies if relevant; (i) information on household composition and dependants; (j) evidence of tax status; (k) evidence of life insurance for the names borrower(s); (l) data from credit registers or credit information bureaux or other relevant databases, covering the information on financial liabilities and arrears in payment; (m) information on the collaternal sources, including the consumer and, where necessary, on the basis of a consultation of a database referred to in Article 19. if any; (n) evidence of ownership of the collateral; (o) evidence of the value of the collateral; (p) evidence of insurance of the collateral; (q) information on guarantees, other credit risk mitigating factors and guarantors if any; (r) rental agreement or evidence of potential rental income for buy-to-let loans if any; (s) permissions and cost estimates, for real estate building and improvement loans; (t) the household general budget data of the borrower; (u) other types/sources of information and data of an economic or financial nature that are necessary for the assessment, when relevant and more appropriate.
Amendment 572 #
Proposal for a directive
Article 18 – paragraph 2 a (new)
Article 18 – paragraph 2 a (new)
2 a. The information taken into account for the purpose of the creditworthiness assessment shall be necessary and proportionate to assess the repayment capacity of the consumer, in line with the data minimisation principle of Regulation (EU) 2016/679, and shall be relevant, up-to-date, complete and accurate.
Amendment 574 #
Proposal for a directive
Article 18 – paragraph 2 b (new)
Article 18 – paragraph 2 b (new)
2 b. The European Banking Authority (EBA) shall develop draft regulatory technical standards for the use of the information mentioned in paragraph 2 by the creditor and, where applicable, the provider of the crowdfunding credit services.
Amendment 576 #
Proposal for a directive
Article 18 – paragraph 2 c (new)
Article 18 – paragraph 2 c (new)
2 c. Data other than the economic or financial data listed in paragraph 2, and in particular data mentioned in Article 9(1) of Regulation (EU) n°2016/679 (GDPR), shall not be processed nor used to perform creditworthiness assessments.
Amendment 579 #
Proposal for a directive
Article 18 – paragraph 2 d (new)
Article 18 – paragraph 2 d (new)
2 d. The information mentioned in paragraph 2 shall be obtained from relevant internal or external sources, including the consumer and, where necessary, but not exclusively, on the basis of a consultation of a database referred to in Article 19, and the consumer’s payment account, subject to the consumer’s consent as defined in Directive (EU) 2015/2366 on payment services in the internal market (PSD 2).
Amendment 580 #
Proposal for a directive
Article 18 – paragraph 2 e (new)
Article 18 – paragraph 2 e (new)
2 e. Member States shall ensure that the creditworthiness assessment and corresponding repayment plans are tailored to the borrower’s specific profile and repayment capacity, including in the case of the most vulnerable consumers. In particular, where a creditor or a provider of crowdfunding credit services fulfils a social purpose as required by national law, the specificities of the loan such as its nature, maturity and interest rate, as well as the repayment plan should fit the borrowers’ specific profiles.
Amendment 587 #
Proposal for a directive
Article 18 – paragraph 4 – introductory part
Article 18 – paragraph 4 – introductory part
4. Member States shall ensure that the creditor or the provider of crowdfunding credit services only makes the credit available to the consumer where the result of the creditworthiness assessment is positive, meaning that it indicates that the obligations resulting from the credit agreement or the agreement for the provision of crowdfunding credit services are likely to be met in the manner required under that agreement.
Amendment 593 #
Proposal for a directive
Article 18 – paragraph 4 – subparagraph 1
Article 18 – paragraph 4 – subparagraph 1
Amendment 607 #
Proposal for a directive
Article 18 – paragraph 6 – point a
Article 18 – paragraph 6 – point a
(a) request and obtain human interventionassessment on the part of the creditor or the provider of crowdfunding credit services to review the decision;
Amendment 621 #
Proposal for a directive
Article 18 – paragraph 7
Article 18 – paragraph 7
7. Member States shall ensure that where the credit application is rejected the creditor or the provider of crowdfunding credit services is required to inform the consumer without delay of the rejection and, where applicable, of the fact that the assessment of creditworthiness is based on automated processing of data. to provide justifications for the rejection on a durable medium, and, where relevant, refer the consumer to debt advisory services available in her/his area
Amendment 625 #
Proposal for a directive
Article 18 – paragraph 8
Article 18 – paragraph 8
8. Where the parties agree to change the total amount of credit after the conclusion of the credit agreement, or the agreement for the provision of crowdfunding credit services, Member States shall ensure that the creditor or the provider of crowdfunding credit services is required to reassess the consumer’s creditworthiness on the basis of updated information before any significant increase in the total amount of credit is granted.
Amendment 635 #
Proposal for a directive
Article 19 – paragraph 1 a (new)
Article 19 – paragraph 1 a (new)
1 a. Without prejudice to paragraph 1, only creditors and providers of crowdfunding credit services which are subject to supervision by competent authorities and who are also providing their own information to a database shall have access to databases.
Amendment 638 #
Proposal for a directive
Article 19 – paragraph 4
Article 19 – paragraph 4
4. Where the credit application is rejected on the basis of a consultation of a database referred to in paragraph 1, Member States shall require that the creditor or the provider of crowdfunding credit services informs the consumer immediately and free of charge of the result of such consultation and of the details of the database consulted as well as the categories of data taken into account.
Amendment 644 #
Proposal for a directive
Article 20 – paragraph 1
Article 20 – paragraph 1
1. Member States shall require that credit agreements or agreements for the provision of crowdfunding credit services are drawn up on paper or on anothera durable medium and that all the contracting parties are provided with a copy of the credit agreement or of the agreement for the provision of crowdfunding credit services.
Amendment 646 #
Proposal for a directive
Article 20 – paragraph 2
Article 20 – paragraph 2
Amendment 649 #
Proposal for a directive
Article 21 – paragraph 1 – point v a (new)
Article 21 – paragraph 1 – point v a (new)
(v a) the relevant contact details of debt- advisory services and a recommendation for the consumer to contact such services in case of re-payment difficulties.
Amendment 654 #
Proposal for a directive
Article 23 – paragraph 1 – introductory part
Article 23 – paragraph 1 – introductory part
1. Member States shall require that the creditor or the provider of crowdfunding credit services inform the consumer of any change in the borrowing rate, on paper or another durable medium,a durable medium, at least 2 working days before the change enters into force.
Amendment 656 #
Proposal for a directive
Article 23 – paragraph 2 – point d
Article 23 – paragraph 2 – point d
(d) the information concerning the new reference rate is also available at the premises and on the website or mobile app of the creditor or of the provider of crowdfunding credit services.
Amendment 664 #
Proposal for a directive
Article 24 – paragraph 2 – introductory part
Article 24 – paragraph 2 – introductory part
2. Where a credit has been granted in the form of an overdraft facility, Member States shall require that the creditor informs the consumer, on paper or anothera durable medium, of increases in the borrowing rate or in any charges payable, at least 2 working days before the change in question enters into force.
Amendment 665 #
Proposal for a directive
Article 24 – paragraph 2 – subparagraph 1 – point d
Article 24 – paragraph 2 – subparagraph 1 – point d
(d) the information concerning the new reference rate is also available at the premises and on the website or mobile app of the creditor.
Amendment 668 #
Proposal for a directive
Article 25 – paragraph 2 – introductory part
Article 25 – paragraph 2 – introductory part
2. In the event of a significant overrunning exceeding a period of one month14 days, Member States shall require that the creditor informs the consumer without delay, on paper or on anothera durable medium, of all of the following:
Amendment 671 #
Proposal for a directive
Article 25 – paragraph 2 – subparagraph 1
Article 25 – paragraph 2 – subparagraph 1
In addition, in case of regular overrunning, the creditor shall offer to the consumer advisory services, where available, orand redirect consumers towards debt advisory services.
Amendment 675 #
Proposal for a directive
Article 26 – paragraph 1 – subparagraph 1 – point b
Article 26 – paragraph 1 – subparagraph 1 – point b
(b) the day on which the consumer receives the contractual terms and conditions and information in accordance with Articles 20 and 21, if that day is later than the date referred to in point (a) of this subparagraph.
Amendment 679 #
Proposal for a directive
Article 26 – paragraph 1 – subparagraph 2
Article 26 – paragraph 1 – subparagraph 2
The deadline referred to in the first subparagraph shall be deemed to have been met if the notification referred to in paragraph 3, point (a), is dispatched by the consumer to the creditor of to the provider of crowdfunding credit services before that deadline expires. The right of withdrawal referred to in the first subparagraph shall in any event lapse one year and 14 calendar days after the conclusion of the credit agreement or the agreement for the provision of crowdfunding credit services.
Amendment 683 #
Proposal for a directive
Article 26 – paragraph 1 a (new)
Article 26 – paragraph 1 a (new)
1 a. In the case of a linked credit agreement for the purchase of a good with a return policy that ensures a full refund for a certain period of time exceeding 14 calendar days, the right of withdrawal shall be extended to match the duration of such return policy.
Amendment 685 #
Proposal for a directive
Article 26 – paragraph 7 a (new)
Article 26 – paragraph 7 a (new)
7 a. The Commission is empowered to adopt delegated acts in accordance with Article 45 to develop a standardised one- page document that fulfils the information requirements provided for in Article 21 in order to facilitate the application of paragraph 1.
Amendment 691 #
Proposal for a directive
Article 29 – paragraph 1
Article 29 – paragraph 1
1. Member States shall ensure that the consumer is at any time entitled to early repayment. In such cases, the consumer shall be entitled to a reduction in the total cost of the credit, consisting of the interest and the costs for the remaining duration of the contract. When calculating that reduction, all the costs imposed on the consumer by the creditor shall be taken into consideration, except for up-front costs, which are fully exhausted at the time of granting of the loan and corresponded to services effectively provided to the consumer. The up-front costs should be adequately identified and declared in the credit contract.
Amendment 697 #
Proposal for a directive
Article 29 – paragraph 4 – introductory part
Article 29 – paragraph 4 – introductory part
4. By way of derogation from paragraph 2, Member States may provide that: the creditor is only entitled to the compensation referred to in paragraph 2 on the condition that the amount of the early repayment exceeds the threshold set out in national law, which shall not exceed EUR 10 000 within any period of 12 months.
Amendment 698 #
Proposal for a directive
Article 29 – paragraph 4 – point a
Article 29 – paragraph 4 – point a
Amendment 700 #
Proposal for a directive
Article 29 – paragraph 4 – point b
Article 29 – paragraph 4 – point b
Amendment 702 #
Proposal for a directive
Article 30 – paragraph 2 – subparagraph 1 a (new)
Article 30 – paragraph 2 – subparagraph 1 a (new)
The annual percentage rate of charge must also take into account the costs and charges for any additional insurance or other financial products where the conclusion of a contract regarding such insurance or other financial product is compulsory in order to obtain the credit or to obtain it on the terms and conditions marketed;
Amendment 703 #
Proposal for a directive
Article 30 – paragraph 4
Article 30 – paragraph 4
4. In the case of credit agreements or agreements for the provision of crowdfunding credit services containing clauses that allow variations in the borrowing rate or variations in certain charges contained in the annual percentage rate of charge which make them unquantifiable at the time of calculation, the annual percentage rate of charge shall be calculated on the assumption that the borrowing rate and other charges will remain fixed in relation to the initial level and will remain applicable until the end of the credit agreement or of the agreement for the provision of crowdfunding credit services. the consumer shall be provided with two versions of the annual percentage rate of charge: (i) the first version shall be calculated on the assumption that the borrowing rate and other charges will remain fixed in relation to the initial level and will remain applicable until the end of the credit agreement or of the agreement for the provision of crowdfunding credit services, (ii) the second version shall be calculated on the assumption that the interest rate will suffer a significant increase throughout the duration of the credit agreement or the agreement for the provision of crowdfunding credit services.
Amendment 706 #
Proposal for a directive
Article 31 – title
Article 31 – title
Caps on interest rates,the annual percentage rate of charge and the total cost of the credit to the consumer
Amendment 707 #
Proposal for a directive
Article 31 – paragraph 1 – introductory part
Article 31 – paragraph 1 – introductory part
1. Member States shall introduce caps on one or more of the following:the annual percentage rate of charge. The European Banking Authority (EBA) shall conduct a stock-taking exercise of the annual percentage rates of charge caps applicable in various Member States and create a list of the main categories of consumer credit products on offer in each Member State. On the basis of this exercise, the EBA shall develop draft regulatory technical standards specifying the method for calculating the APRC caps. Member States shall ensure that caps are differentiated according to the different credit products, adapted to national specificities, based on market rates and periodically reviewed.
Amendment 713 #
Proposal for a directive
Article 31 – paragraph 1 – point a
Article 31 – paragraph 1 – point a
Amendment 714 #
Proposal for a directive
Article 31 – paragraph 1 – point b
Article 31 – paragraph 1 – point b
Amendment 718 #
Proposal for a directive
Article 31 – paragraph 1 – point c
Article 31 – paragraph 1 – point c
Amendment 720 #
Proposal for a directive
Article 31 – paragraph 1 a (new)
Article 31 – paragraph 1 a (new)
1 a. A lower cap shall apply to socially and environmentally sustainable credit products.
Amendment 726 #
Proposal for a directive
Article 32 – paragraph 1 – point e a (new)
Article 32 – paragraph 1 – point e a (new)
(e a) promoting the sale of goods or services, covered by a linked credit agreement
Amendment 728 #
Proposal for a directive
Article 32 – paragraph 2
Article 32 – paragraph 2
Amendment 730 #
Proposal for a directive
Article 32 – paragraph 3 – point a
Article 32 – paragraph 3 – point a
(a) the remuneration policy is consistent with and promotes sound and effective risk management and does not encourage risk-taking that exceeds the level of tolerated risk of the creditor or provokes negative impacts for consumers;
Amendment 732 #
Proposal for a directive
Article 32 – paragraph 4
Article 32 – paragraph 4
4. Member States shall ensure that where creditors, credit intermediaries or providers of crowdfunding credit services provide advisory services the remuneration structure of the staff involved does not prejudice their ability to act in the consumer’s best interest and is not contingent on sales targets. In order to achieve that goal, Member States mayshall also ban commissions paid by the creditor to the credit intermediary.
Amendment 738 #
Proposal for a directive
Article 34 – title
Article 34 – title
Financial information and education
Amendment 739 #
Proposal for a directive
Article 34 – paragraph 1 – introductory part
Article 34 – paragraph 1 – introductory part
1. Member States shall promote measures that support the education of consumers in relation to responsible borrowing and debt management, in particular in relation to consumer credit agreements. Clear and general information on the credit granting process shall be provided to consumers in order to guide them, in particular those who take out a consumer credit for the first time, and especially on digital toolsbudget management.
Amendment 741 #
Proposal for a directive
Article 34 – paragraph 1 – subparagraph 1
Article 34 – paragraph 1 – subparagraph 1
Amendment 742 #
Proposal for a directive
Article 34 – paragraph 1 a (new)
Article 34 – paragraph 1 a (new)
1 a. Clear and general information on the credit granting process shall be provided to consumers in order to guide them, in particular those who take out a consumer credit for the first time, and especially on digital tools. Member States shall also disseminate information regarding the guidance that consumer organisations and national authorities may provide to consumers.
Amendment 744 #
Proposal for a directive
Article 35 – paragraph 1 – introductory part
Article 35 – paragraph 1 – introductory part
1. Member States shall require creditors to have adequate policensure that creditors propose appropriate forbearance measures, tailored to the consumer’s individual circumstances, to consumers experiencing or likely to experience financial difficulties, and procedures so that they make effin any event, prior to launching enforcement proceedings or assigning the credit to third parties. Member States shall require creditorts to exercise, where appropriate, reasonable forbearance before enforcement proceedings are initiated. Such forbearance measures shall take into account, among other elements, the consumer’s circumstances and mayshall consist in, amt least onge of ther following possibilities:
Amendment 746 #
Proposal for a directive
Article 35 – paragraph 1 – point b – point iv
Article 35 – paragraph 1 – point b – point iv
(iv) changlowering the interest rate;
Amendment 752 #
Proposal for a directive
Article 36 – paragraph 1
Article 36 – paragraph 1
Member States shall ensure that independent debt advisory services are made available to consumers., free of charge or at a reasonable price, and that adequate support is provided to debt- advice structures. Member States shall ensure that creditors systematically refer consumers experiencing or likely to experience financial difficulties, to the nearest debt- advice service available in their area
Amendment 757 #
Proposal for a directive
Article 36 – paragraph 1 a (new)
Article 36 – paragraph 1 a (new)
For the purposes of fulfilling the obligations in paragraph 1, creditors shall have processes and policies in place for the early detection and monitoring of consumers experiencing or likely to experience financial difficulties.
Amendment 760 #
Proposal for a directive
Article 37 – paragraph 1
Article 37 – paragraph 1
Member States shall ensure that creditors, credit intermediaries and providers of crowdfunding credit services that are not credit institutions as defined in Article 4(1), point (1), of Regulation (EU) No 575/2013 are subject to an adequate admission process and to registration and supervision arrangements set up by an independent competent authority. No credit shall be provided by providers which are not under the supervision of a competent authority.
Amendment 772 #
Proposal for a directive
Article 38 – paragraph 1 – point c
Article 38 – paragraph 1 – point c
(c) reach an agreement with the consumer on any fees referred to in point (b) on paper or anothera durable medium before the conclusion of the credit agreement;
Amendment 776 #
Proposal for a directive
Article 39 – paragraph 2 a (new)
Article 39 – paragraph 2 a (new)
2 a. Member States shall expressly prohibit the assignment of credit which can no longer be recovered in court or where the legal basis of the credit can no longer be demonstrated.
Amendment 778 #
Proposal for a directive
Article 40 – paragraph 2 a (new)
Article 40 – paragraph 2 a (new)
2 a. The participation of creditors, credit intermediaries and providers of crowdfunding credit services in out-of- court dispute settlement mechanisms for household customers shall be mandatory unless the Member State demonstrates to the Commission that other mechanisms are equally effective.
Amendment 779 #
Proposal for a directive
Article 41 – paragraph 8 a (new)
Article 41 – paragraph 8 a (new)
8 a. Member States may apply national legislation to grant product intervention powers to national competent authorities to withdraw products with a high default rate according to the data available through Article 41a
Amendment 780 #
Proposal for a directive
Article 41 a (new)
Article 41 a (new)
Article 41 a Data collection by competent authorities 1. National Competent Authorities of each Member State shall collect data on monthly default rates associated with different types of consumer credit products under the scope of this Directive, broken down by creditor and by sales channel. This data should be reported to the European Banking Authority in a standard reporting format. The European Banking Authority shall provide an annual report to the Commission on these default rates, which shall: (a) Be made publicly available; (b) Analyse the default rates of each category of credit product covered by the Directive for each Member State. 2. For this purpose, the European Banking Authority shall develop a draft typology of consumer credit products covered by the directive as well as draft regulatory technical standard to stipulate the standard reporting format for default rates under paragraph 1 for submission to the Commission by XX, which it shall review every two years thereafter. Powers are delegated to the European Commission to adopt and, where necessary amend, regulatory technical standards to stipulate the standard reporting format and default rates on the basis of the draft provided by the European Banking Authority. Those regulatory technical standards shall be adopted in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Amendment 788 #
Proposal for a directive
Article 44 – paragraph 2
Article 44 – paragraph 2
2. Member States shall ensure that when penalties are to be imposed in accordance with Article 21 of Regulation (EU) 2017/2394, they include the possibility either to impose fines through administrative procedures or to initiate legal proceedings for the imposition of fines, or both, the maximum amount of such fines being at least 4% of the creditor, the credit intermediary or the provider of crowdfunding credit services’ annual turnover in allthe Member States(s) concerned by the coordinated enforcement action.
Amendment 791 #
Proposal for a directive
Article 44 a (new)
Article 44 a (new)
Article 44 a Remedies Member States shall ensure that consumers have access to proportionate and effective remedies, including compensation, in accordance with applicable national civil law, for damage suffered by the consumer and, where relevant, a price reduction or the termination of the contract. Those remedies shall be without prejudice to the application of other remedies available to consumers under Union or national law.
Amendment 793 #
Proposal for a directive
Article 46 – paragraph 1
Article 46 – paragraph 1
1. The Commission shall undertake, every fivthree years and for the first time fivthree years from the date of application, an evaluation of this Directive. The evaluation shall include an assessment of the thresholds laid down in Article 2(2), point c, and in Part II of Annex IV, and of the percentages used to calculate the compensation payable in the event of early repayment as referred to in Article 29, in the light of economic trends in the Union and the situation in the market concerned.
Amendment 802 #
Proposal for a directive
Article 48 – paragraph 1 – subparagraph 1
Article 48 – paragraph 1 – subparagraph 1