Activities of Vicky FORD related to 2011/0062(COD)
Plenary speeches (1)
Credit agreements relating to residential property (debate)
Shadow reports (1)
REPORT on the proposal for a directive of the European Parliament and of the Council on credit agreements relating to residential property PDF (1 MB) DOC (1 MB)
Amendments (132)
Amendment 198 #
Proposal for a directive
Recital 11 a (new)
Recital 11 a (new)
(11a) The definition of a ‘credit intermediary’ does not cover the mere referral of a consumer to a credit intermediary or creditor, if the person does not otherwise offer credit agreements, assist consumers by undertaking preparatory work in respect of credit agreements or conclude credit agreements with consumers on behalf of the creditor.
Amendment 267 #
Proposal for a directive
Recital 34
Recital 34
(34) Credit intermediaries should be registered with the competent authority of the Member State where they have their residence or their heahead office and (for legal persons) registered office, provided that they have been authorised in accordance with strict professional requirements in relation to their competence, good repute, and professional indemnity cover. With a view to promoting consumer confidence in credit intermediaries, Member States should ensure that authorised credit intermediaries are subject to ongoing and thorough supervision by their home Member State competent authority. Such requirements should apply at least at the level of the institution; however, Member States may clarify whether such requirements for authorisation and subsequent registration apply to individual employees within the credit intermediary.
Amendment 298 #
Proposal for a directive
Article 2 – paragraph 2 – point a
Article 2 – paragraph 2 – point a
(a) Credit agreements which will eventually be repaid from the sale proceedsere the creditor: (i) contributes a lump sum, periodic payments or other forms of credit disbursement in return for a sum deriving from the sale of an immovable property ofr an right relating to immovable property; and (ii) will not seek full repayment of the credit until the occurrence of one or more specified life events defined in Member States (equity release).
Amendment 306 #
Proposal for a directive
Article 2 – paragraph 2 a (new)
Article 2 – paragraph 2 a (new)
2a. Credit agreements where the credit is granted free of interest and without any other charges except those that recover costs for activities related to the securing of the loan.
Amendment 309 #
Proposal for a directive
Article 2 – paragraph 2 a (new)
Article 2 – paragraph 2 a (new)
2a. Members States may decide that some or all of the Articles of this Directive do not apply to credit agreements which relate to loans granted to a restricted public under a statutory provision with a general interest purpose, and at lower interest rates than those prevailing on the market or free of interest or on other terms which are more favourable to the consumer than those prevailing on the market and at interest rates not higher than those prevailing on the market.
Amendment 310 #
Proposal for a directive
Article 2 – paragraph 2 b (new)
Article 2 – paragraph 2 b (new)
2b. Members States may decide that some or all of the Articles of this Directive do not apply to credit agreements where the property is not to be occupied as a dwelling by the consumer or a related person, where the creditor accepts to be exempted from the provisions of this Directive.
Amendment 311 #
Proposal for a directive
Article 2 – paragraph 2 c (new)
Article 2 – paragraph 2 c (new)
2c. Members States may decide that some or all of the Articles of this Directive do not apply to credit agreements where the credit is due to be repaid within 12 months, where the creditor accepts to be exempted from the provisions of this Directive.
Amendment 312 #
Proposal for a directive
Article 2 – paragraph 2 d (new)
Article 2 – paragraph 2 d (new)
2d. Members States may decide that some or all of the Articles of this Directive do not apply to credit agreements entered into by a consumer with an annual net income of no less than EUR 1 500 000 or net assets of no less than EUR 2 000 000, where the creditor accepts to be exempted from the provisions of this Directive.
Amendment 313 #
Proposal for a directive
Article 2 – paragraph 2 e (new)
Article 2 – paragraph 2 e (new)
2e. Member States may decide that some or all of the Articles of this Directive do not apply to organisations as defined in Article 2(5) of Directive 2008/48/EC.
Amendment 316 #
Proposal for a directive
Article 3 – paragraph 1 – point e – point (i) – (iii)
Article 3 – paragraph 1 – point e – point (i) – (iii)
(i) presents or offers credit agreements within the meaning of Article 2 to consumersor; (ii) assists consumers by undertaking preparatory work in respect of credit agreements within the meaning of Article 2 other than as referred to in point (i); or (iii) concludes credit agreements within the meaning of Article 2 with consumers on behalf of the creditor, or any combination of the above, This does not include those natural or legal persons who in the course of their business or profession, acting in an ancillary capacity, merely introduce a consumer to a creditor or credit intermediary without engaging in any credit activity which may be binding for the consumer.
Amendment 336 #
Proposal for a directive
Article 3 – paragraph 1 – point q – point i
Article 3 – paragraph 1 – point q – point i
(i) where the creditor or credit intermediary is a natural person, the Member State in which his residenhead office is situated and in which he carries on his business;
Amendment 337 #
Proposal for a directive
Article 3 – paragraph 1 – point q – point ii
Article 3 – paragraph 1 – point q – point ii
(ii) where the creditor or credit intermediary is a legal person, the Member State in which its registered office is situated or, if under national law it has noa registered office, the Member State in which itsand head office isare situated.
Amendment 367 #
Proposal for a directive
Article 6 – paragraph 1 – introductory part
Article 6 – paragraph 1 – introductory part
1. Home Member States shall ensure that:
Amendment 370 #
Proposal for a directive
Article 6 – paragraph 1 – point a
Article 6 – paragraph 1 – point a
Amendment 376 #
Proposal for a directive
Article 6 – paragraph 1 – point b
Article 6 – paragraph 1 – point b
Amendment 379 #
Proposal for a directive
Article 6 – paragraph 1 – point c
Article 6 – paragraph 1 – point c
Amendment 380 #
Proposal for a directive
Article 6 – paragraph 1 a (new)
Article 6 – paragraph 1 a (new)
1a. Member States need not apply the requirement referred to in subparagraph (1)(a) to all the natural persons working in a creditor or credit intermediary. In applying the requirements in subparagraphs (1)(a) and (1)(b) Member States shall ensure that persons within the management structure of such undertakings who are responsible for the offering or granting of credit agreements within the meaning of Article 2 and all other persons directly involved in the offering or granting of credit agreements within the meaning of Article 2 possess an appropriate level of knowledge and competence in relation to the offering or granting of credit agreements within the meaning of Article 2, or the activity of credit intermediation as defined in Article 3(e).
Amendment 382 #
Proposal for a directive
Article 6 – paragraph 2
Article 6 – paragraph 2
2. Home Member States shall ensure that the appropriate level of knowledge and competence is determined on the basis of recognised appropriate qualifications or experience.
Amendment 386 #
Proposal for a directive
Article 6 – paragraph 3
Article 6 – paragraph 3
3. Home Member States shall make public the criteria they have established in order for credit intermediaries or creditors’ staff to meet their competence requirements. Such criteria shall include a list of any recognised qualifications.
Amendment 390 #
Proposal for a directive
Article 6 – paragraph 4
Article 6 – paragraph 4
Amendment 398 #
Proposal for a directive
Article 8 – paragraph 2 – subparagraph 1 – point b
Article 8 – paragraph 2 – subparagraph 1 – point b
Amendment 401 #
Proposal for a directive
Article 8 – paragraph 2 – subparagraph 1 – point c
Article 8 – paragraph 2 – subparagraph 1 – point c
(c) the borrowing rate, indicating whether this is fixed or variable or both, together with particulars of any charges included in the total cost of the credit to the consumer;
Amendment 402 #
Proposal for a directive
Article 8 – paragraph 2 – subparagraph 1 – point d
Article 8 – paragraph 2 – subparagraph 1 – point d
Amendment 404 #
Proposal for a directive
Article 8 – paragraph 2 – subparagraph 1 – point f
Article 8 – paragraph 2 – subparagraph 1 – point f
Amendment 405 #
Proposal for a directive
Article 8 – paragraph 2 – subparagraph 1 – point g
Article 8 – paragraph 2 – subparagraph 1 – point g
Amendment 409 #
Proposal for a directive
Article 8 – paragraph 2 – subparagraph 1 – point h
Article 8 – paragraph 2 – subparagraph 1 – point h
Amendment 415 #
Proposal for a directive
Article 8 – paragraph 2 – subparagraph 1 – point i
Article 8 – paragraph 2 – subparagraph 1 – point i
(i) a warning, where applicablewhere it is not clear in the advertisement that the credit agreement is a credit agreement as defined by Article 2, a warning, concerning the risk of losing the immovable property in the event of non- observance of the commitments linked to the credit agreement when the credit is secured by a mortgage or another comparable security commonly used in a Member State on residential immovable property or secured by a right related to residential immovable property.
Amendment 424 #
Proposal for a directive
Article 8 – paragraph 4 – subparagraph 1
Article 8 – paragraph 4 – subparagraph 1
Amendment 425 #
Proposal for a directive
Article 8 – paragraph 4 – subparagraph 2
Article 8 – paragraph 4 – subparagraph 2
Amendment 429 #
Proposal for a directive
Article 9 – paragraph 1 – subparagraph 1
Article 9 – paragraph 1 – subparagraph 1
Member States shall ensure that general information about credit agreements is made available by creditors or, where applicable, credit intermediaries at all times in a durable medium or in electronic form.
Amendment 432 #
Proposal for a directive
Article 9 – paragraph 1 – subparagraph 2 – point d
Article 9 – paragraph 1 – subparagraph 2 – point d
(d) the possible duration of the credit agreements and the general implications of borrowing for different terms;
Amendment 434 #
Proposal for a directive
Article 9 – paragraph 1 – subparagraph 2 – point f
Article 9 – paragraph 1 – subparagraph 2 – point f
(f) indication of the currency or currencies in which credits are available, including an explanation of the implications for the consumer where the credit is denominated in a foreign currency;
Amendment 436 #
Proposal for a directive
Article 9 – paragraph 1 – subparagraph 2 – point g
Article 9 – paragraph 1 – subparagraph 2 – point g
(g) an indicative example of the total cost of credit for the consumer andand an explanation of the meaning of the annual percentage rate of charge;
Amendment 441 #
Proposal for a directive
Article 9 – paragraph 1 – subparagraph 2 – point h
Article 9 – paragraph 1 – subparagraph 2 – point h
(h) an explanation of the different options available for reimbursing the credit to the creditor (including the number, frequency and amount of the regular repayment instalcapital repayment and interest-only credit agreements);
Amendment 442 #
Proposal for a directive
Article 9 – paragraph 1 – subparagraph 2 – point i
Article 9 – paragraph 1 – subparagraph 2 – point i
(i) whether there is a possibility of early repayment and, where applicable, a description of theexplanation of the implications of early repayment and, what conditions can be attached to early repaymenit;
Amendment 451 #
Proposal for a directive
Article 9 – paragraph 1 – subparagraph 2 – point k
Article 9 – paragraph 1 – subparagraph 2 – point k
(k) where appropriate, details on how to obtain information on tax relief on credit agreement interest or other public subsidies.
Amendment 457 #
Proposal for a directive
Article 9 – paragraph 2 – subparagraph 1
Article 9 – paragraph 2 – subparagraph 1
Member States shall ensure that the creditor and, where applicable, the credit intermediary, without undue delay after the consumer has given the necessary information on his needs, financial situation and preferences in accordance with Article 14, provides the consumer with the personalised information needed to compare the credits available on the market, assess their implications and take an informed decision on whether to conclude a credit agreement. Such information, on paper or on another durable medium, shallmay be provided by means ofsuch as the European Standardised Information Sheet (‘ESIS’), as set out in Annex II, or an equivalent document providing at least the same information, which is approved by the relevant national authority.
Amendment 469 #
Proposal for a directive
Article 9 – paragraph 2 – subparagraph 2
Article 9 – paragraph 2 – subparagraph 2
Member States shall ensure that when an offer binding on the creditor is provided to the consumer, it shall be accompanied by an ESIS or equivalent, approved national document. In such circumstances, Member States shall ensure that the credit agreement cannot be concluded until the consumer has had sufficient time to compare the offers, assess their implications and take an informed decision on whether to accept an offer, regardless of the means of conclusion of the contract.
Amendment 478 #
Proposal for a directive
Article 9 – paragraph 2 – subparagraph 3
Article 9 – paragraph 2 – subparagraph 3
The creditor and, where applicable, the credit intermediary shall be deemed to have fulfilled the requirements on information provision to the consumer prior to the conclusion of a distance contract as set out in Article 3 of Directive 2002/65/EC where they have supplied the ESIS or equivalent, approved national document.
Amendment 479 #
Proposal for a directive
Article 9 – paragraph 2 – subparagraph 4
Article 9 – paragraph 2 – subparagraph 4
Amendment 493 #
Proposal for a directive
Article 10 – paragraph 1 – introductory part
Article 10 – paragraph 1 – introductory part
1. Prior to the performance of any of the services listed in Article 3(e), a credit intermediary shall provide the consumer shall be provided with at least the following information:
Amendment 496 #
Proposal for a directive
Article 10 – paragraph 1 – point d
Article 10 – paragraph 1 – point d
Amendment 497 #
Proposal for a directive
Article 10 – paragraph 1 – point e
Article 10 – paragraph 1 – point e
Amendment 498 #
Proposal for a directive
Article 10 – paragraph 1 – point f
Article 10 – paragraph 1 – point f
Amendment 499 #
Proposal for a directive
Article 10 – paragraph 1 – point g
Article 10 – paragraph 1 – point g
(g) the procedures allowing consumers and other interested parties to register complaints about credit intermediariesinternally and, where appropriate, the means by which recourse to the out-of-court complaint and redress procedures can be sought;
Amendment 500 #
Proposal for a directive
Article 10 – paragraph 1 a (new)
Article 10 – paragraph 1 a (new)
1 a. In good time before the consumer is bound by any credit agreement or offer, he shall be provided with the following information: (a) where he is not offering credits from a comprehensive and representative range of creditors in the market, he shall identify himself as such and, at the consumer’s request, provide the names of the creditor(s) for which he is acting (b) the fee, where applicable, payable by the consumer to the credit intermediary for his services; (c) for those credit intermediaries that are not tied, the existence of commissions, where applicable, payable by the creditor to the credit intermediary for his services
Amendment 507 #
Proposal for a directive
Article 10 – paragraph 3 – subparagraph 1
Article 10 – paragraph 3 – subparagraph 1
Amendment 508 #
Proposal for a directive
Article 10 – paragraph 3 – subparagraph 2
Article 10 – paragraph 3 – subparagraph 2
Amendment 509 #
Proposal for a directive
Article 10 – paragraph 4
Article 10 – paragraph 4
Amendment 517 #
Proposal for a directive
Article 11 – paragraph 1
Article 11 – paragraph 1
Member States shall ensure that creditors and, where applicable, credit intermediaries provide adequate explanations to the consumer on the proposed credit agreement(s) and any ancillary service(s), in order to place the consumer in a position enabling him to assess whether the proposed credit agreements are adapted to his needs and financial situation, taking into account the consumer’s individual knowledge. An adequate explanation shall include the provision of personalised information on the characteristics of the essential credits on offer, without however formulating any recommendation. Creditors and, where applicable, credit intermediaries shall accurately assess the level of knowledge and experience with credit of the consumer by any means necessary so as to enable the creditor or the intermediary to determine the level of explanations to be given to the consumer and adjust such explanations accordingly.
Amendment 519 #
Proposal for a directive
Article 11 – paragraph 2
Article 11 – paragraph 2
Amendment 547 #
Proposal for a directive
Article 13 – paragraph 1
Article 13 – paragraph 1
1. Member States shall ensure that the creditor informs the consumer of any change in the borrowing rate, on paper or another durable medium, before the change enters into force. The information shall state the amount of the repayments to be made after the entry into force of the new borrowing rate and, in cases where the number or frequency of the payments changes, particulars thereof by agreement email or electronic notification.
Amendment 548 #
Proposal for a directive
Article 13 – paragraph 2
Article 13 – paragraph 2
Amendment 556 #
Proposal for a directive
Article 14 – paragraph 1
Article 14 – paragraph 1
1. Member States shall ensure that, before the conclusion of the credit agreement, a thorough assessment of the consumer's creditworthiness is conducted by the creditor, based on criteria including the consumer's income, savings, debts and other financial commitmentsreasonable criteria. That assessment shall be carried out on the basis of the necessarysufficient information, obtained by the creditor or, where applicable, credit intermediarywhere appropriate, obtained from the consumer, and from relevant internal or external sources and, where necessary, on the basis of the consultation of the relevant database. This shall respect the requirements with regard to necessity and proportionality set out in Article 6 of Directive 95/46/EC. Member States shall ensure that creditors establish appropriate processes to assess the creditworthiness of the consumer. These processes shall be reviewed at regular intervals and up-to-date records of those processes shall be maintained. Expert risk assessment shall not be automatically replaced by quantitative parameters in automatic underwriting processes nor rely only on externally provided credit scores or on scores based only on credit history.
Amendment 571 #
Proposal for a directive
Article 14 – paragraph 2 – point a
Article 14 – paragraph 2 – point a
(a) WThere the assessment of the consumer's creditworthiness results in a negative prospect f creditor shall only make the credit available to the consumer where the result of the creditwor this ability to repay the credit over the lifetime of thness assessment suggests that the credit is likely to be credit agreement, the creditor refuses credipaid in the manner required under the credit agreement.
Amendment 578 #
Proposal for a directive
Article 14 – paragraph 2 – point b
Article 14 – paragraph 2 – point b
(b) Where the credit application is rejected on the basis of a negative creditworthiness assessment for the consumer, the creditor informs the consumer immediatwithout delay and withoutfree of charge of the main reasons for such rejection;
Amendment 582 #
Proposal for a directive
Article 14 – paragraph 2 – point d
Article 14 – paragraph 2 – point d
(d) Where the credit application is rejected on the basis of the data contained, or lack thereof, in a database that has been consultedresult of consultation of a database, the creditor informs the consumer immediatwithout delay and withoutfree of charge of the result of the consultation, the name of the database that was consulted as well as of its controller and of hithe consumer’s right to access and, where necessary, his right to rectify his data in that database. The information shall be provided unless the provision of such information is prohibited by other Union legislation or is contrary to objectives of public policy or public security.
Amendment 587 #
Proposal for a directive
Article 14 – paragraph 2 – point e
Article 14 – paragraph 2 – point e
Amendment 594 #
Proposal for a directive
Article 14 – paragraph 2 – point f
Article 14 – paragraph 2 – point f
Amendment 604 #
Proposal for a directive
Article 14 – paragraph 5
Article 14 – paragraph 5
Amendment 614 #
Proposal for a directive
Article 15 – paragraph 2 – subparagraph 1
Article 15 – paragraph 2 – subparagraph 1
As regards the information to be provided by the consumer in order for the creditor to be able to conduct a thorough assessment of the consumer's creditworthiness and make a decision on whether or not to grant the credit, Member States shall ensure that creditors, at the pre-contractual phase, clearly specify the information, including independently verifiable evidence where necessary, that the consumer needs to provide. Member States shall also ensureThis shall not prevent thate creditors state the exact timing by which consumers are required to provide such information asking for additional information from an individual consumer, where appropriate, for a thorough assessment of credit- worthiness to be conducted.
Amendment 619 #
Proposal for a directive
Article 16 – paragraph 1
Article 16 – paragraph 1
1. Each Member State shall ensure non- discriminatoryin the case of cross-border credit ensure access for all creditors from other Member States to databases used in that Member State for assessing the creditworthiness of consumers and for monitoring consumers' compliance with the credit obligations over the life of the credit agreement. Such databases comprise databases operated by private credit bureaux or credit reference agencies and public credit registers. The conditions for access shall be non-discriminatory.
Amendment 621 #
Proposal for a directive
Article 16 – paragraph 1 a (new)
Article 16 – paragraph 1 a (new)
1 a. Member States shall ensure that mechanisms are in place for creditors to reconsider an adverse decision not to grant a loan which was taken by a credit institution on the basis of an inaccurate credit report provided by a credit register.
Amendment 627 #
Proposal for a directive
Article 16 – paragraph 2 – subparagraph 1
Article 16 – paragraph 2 – subparagraph 1
Amendment 629 #
Proposal for a directive
Article 16 – paragraph 2 – subparagraph 2
Article 16 – paragraph 2 – subparagraph 2
Amendment 646 #
Proposal for a directive
Article 17 – paragraph 2 – point a
Article 17 – paragraph 2 – point a
(a) consider a sufficiently large number of credit agreements available on the market so as to enabledisclose to the consumer the range of credit agreements they offer so that the consumer understands the basis of the recommendation of the most suitable credit agreements for the consumer'’s needs, financial situation and personal circumstances;
Amendment 663 #
Proposal for a directive
Article 18 – paragraph 1 a (new)
Article 18 – paragraph 1 a (new)
1 a. Member States may ensure that where a credit agreement relates to a loan in a currency, other than that of the main income of the consumer or the currency of where the property is located, the consumer shall have the right to convert the loan into the currency of the consumer or the Member State within a reasonable period. Member States shall provide that the creditor should be entitled to obtain fair and justified compensation for potential costs directly or indirectly linked to the exercise of the right.
Amendment 665 #
Proposal for a directive
Article 18 – paragraph 1 b (new)
Article 18 – paragraph 1 b (new)
1 b. Member States may ensure that creditors allow consumers to make payments which exceed the amount required by the amortisation structure of the loan contained in the credit agreement without penalty and thereby have the right to either reduce the final maturity of the loan or reduce all future payments pro- rata according to the amortisation structure. Member States shall provide that the creditor should be entitled to obtain fair and justified compensation for potential costs directly or indirectly linked to the exercise of the right.
Amendment 681 #
Proposal for a directive
Article 18 – paragraph 2 – subparagraph 2
Article 18 – paragraph 2 – subparagraph 2
Where a Member State lays down such conditions, these shall not make the exercise of the right referred to in paragraph 1 excessively difficult or onerous for the consumer. Where a credit agreement is funded by callable instruments in regulated markets or relates to a loan with a fixed rate for part or all of the loan, credit intermediaries shall give adequate notices of call dates or expiry periods in order for consumers to benefit from any reduced refinancing costs that may be available to the credit intermediaries should the credit be repaid on such dates.
Amendment 697 #
Proposal for a directive
Article 18 a (new)
Article 18 a (new)
Article 18a Reverse agreements 1. Member States may ensure that, in order to cover risks of aging or retirement, the parties to a credit agreement may agree to convert the credit agreement into a reverse mortgage or other credit agreement under which a sum of money is advanced or paid periodically to the consumer to allow access to equity in the residential immovable property and which will eventually be repaid from the sale of the residential immovable property. 2. Member States shall provide that the creditor should be entitled to obtain fair and justified compensation for potential costs directly or indirectly linked to the exercise of the right.
Amendment 702 #
Proposal for a directive
Article 18 b (new)
Article 18 b (new)
Article 18b Switching of borrower 1. Member States may allow the transfer from a borrower to a consumer of a credit agreement which would be within the scope of Article 2(1)if it were transferred to the consumer in parallel to the sale of a property on condition that the creditor has carried out a creditworthiness assessment of the consumer in accordance with Article 14 and has not concluded that there is a negative prospect for his ability to repay and has provided the consumer with a binding offer prior to the transfer of the credit agreement. 2. Member States may prohibit developers from tying the sale of a projected or existing property by making it conditional upon the transfer to the consumer of a credit agreement which would be within the scope of Article 2(1) if it were transferred to the consumer.
Amendment 704 #
Proposal for a directive
Article 18 c (new)
Article 18 c (new)
Article 18c Arrears and foreclosure 1. Member States may ensure that creditors exercise reasonable forbearance and make diligent efforts to reach a negotiated solution before initiating foreclosure proceedings in relation to credit agreements. 2. Member States may maintain or introduce requirements in relation to the process to be followed or the options which must be pursued prior to initiating foreclosure proceedings in relation to a property situated in their territory. In cases where the borrower has repaid a substantial part or the majority of the loan over a long period such options should include temporarily changing the contractual agreement between the creditor and the consumer. 3. Member States may forbid penalties for default which are additional to the repayment of the outstanding portion of the loan where the penalty is not proportionate. 4. Member States may allow that the return of the collateral is sufficient to repay the loan at least where such a clause was expressly agreed by the parties to the credit agreement.
Amendment 707 #
Proposal for a directive
Article 18 d (new)
Article 18 d (new)
Amendment 709 #
Proposal for a directive
Article 18 e (new)
Article 18 e (new)
Article 18e Registers of credit agreements related to residential immovable property 1. Member States shall ensure that the commencement, modification or termination of any credit agreement located in their territory is reported to a register designated by the Member State. 2. Such reports shall contain at least the following information: (a) where appropriate, the EMKI; (b) the identification of the residential immovable property to which the credit agreement relates; (c) the amount of the loan; (d) the maturity of the loan; (e) the currency in which the loan is denominated; (f) the creditor who granted the loan; (g) the consumer who has taken out the loan. 3. The information shall be accessible by electronic means through a central gateway for the parties to the agreement, creditors and intermediaries, owners of rights in the credit agreement or the related residential immovable property, competent authorities and all the other users recognised by the national law.
Amendment 710 #
Proposal for a directive
Article 18 f (new)
Article 18 f (new)
Article 18f Register of financial products related to credit agreements related to residential immovable property 1. Where creditors or credit institutions in a Member State do not have adequate processes in place to identify property that serves as collateral allocated to a credit, Member States may designate registers which shall record for each financial instrument collateralised against one or more credit agreements related to residential immovable property at least the issuer of the financial instrument, the information necessary to identify the financial instrument, and the EMKI for each credit agreement on which the financial instrument relies for collateral. 2. Such information shall be accessible by electronic means through a central gateway for the parties to the agreement, competent authorities and all the other users recognised by national law. 3. In the case of derivatives related to credit agreements related to residential immovable property Member States may consider that trade repositories as set out in Articles 64, 65 and 66 of Regulation (EU) No .../2011 [EMIR] fulfil the requirements laid down in paragraph 1 provided they also fulfil the accessibility criteria laid down in paragraph 2.
Amendment 720 #
Proposal for a directive
Article 19 – paragraph 1
Article 19 – paragraph 1
1. CUnless provided otherwise by Article [19a new], credit intermediaries shall be duly authorised to carry out the activities set out in Article 3(e) by a competent authority as defined in Article 4 in their home Member State. Such authorisation shall be granted on the basis of requirements established in the home Member State of the credit intermediary and shall include the fulfilment of the professional requirements laid down in Article 201.
Amendment 721 #
Proposal for a directive
Article 19 – paragraph 3 – introductory part
Article 19 – paragraph 3 – introductory part
3. Home Member States shall ensure that the authorisation of credit intermediaries ismay be withdrawn where either:
Amendment 722 #
Proposal for a directive
Article 19 – paragraph 4
Article 19 – paragraph 4
4. Member States shall ensure that authorised credit intermediaries are subject to supervision of their ongoing activities by their home competent authority as referred to in Article 4.
Amendment 724 #
Proposal for a directive
Article 19 a (new)
Article 19 a (new)
Amendment 725 #
Proposal for a directive
Article 20 – paragraph 2 – subparagraph 1 a (new)
Article 20 – paragraph 2 – subparagraph 1 a (new)
Each Member State shall require that: (a) any credit intermediary which is a legal person shall have its head office in the same Member State as its registered office (if it has a registered office under its national law), and (b) any credit intermediary which is not a legal person or which is a legal person but under its national law has no registered office shall have its head office in the Member State in which it actually carries on its business.
Amendment 727 #
Proposal for a directive
Article 22 – paragraph 4 – introductory part
Article 22 – paragraph 4 – introductory part
4. Where the host Member State has clear and demonstrable grounds for concluding that a credit intermediary acting within its territory under the freedom to provide services or through a branch is in breach of the obligations set out in this Directive which do not confer powers on the competent authority of the host Member State, it shall refer those findings to the competent authority of the home Member State which shall take the appropriate measures. In cases where, despite measures taken by the competent authority of the home Member State, a credit intermediary persists in acting in a manner that is clearly prejudicial to the interests of host Member State consumers or the orderly functioning of markets, the following shall apply:
Amendment 728 #
Proposal for a directive
Article 22 a (new)
Article 22 a (new)
Article 22 a Where a credit intermediary has a branch in a Member State other than its home Member State, the competent authority of the Member State in which the branch is located shall assume responsibility for ensuring that the services provided by the branch within its territory comply with the obligations laid down in Articles 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 17 and 18 and in measures adopted pursuant thereto. The competent authority of the Member State in which the branch is located shall have the right to examine branch arrangements and to request such changes as are strictly needed to enable the competent authority to enforce the obligations under Articles 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 17 and 18 and measures adopted pursuant thereto with respect to the services and/or activities provided by the branch within its territory.
Amendment 729 #
Proposal for a directive
Article 22 b (new)
Article 22 b (new)
Article 22 b Where the competent authorities of a host Member State ascertain that a credit intermediary that has a branch within its territory is in breach of the legal or regulatory provisions adopted in that State pursuant to those provisions of this Directive which confer powers on the host Member State's competent authorities, those authorities shall require the credit intermediary concerned to put an end to its irregular situation. In cases where, despite measures taken by the competent authority of the host Member State, a credit intermediary persists in acting in a manner that is clearly prejudicial to the interests of host Member State consumers or the orderly functioning of markets, the following shall apply: (a) The competent authority of the host Member State, after informing the competent authority of the home Member State shall take all the appropriate measures needed in order to protect consumers and the proper functioning of the markets including by preventing the offending credit intermediaries from initiating any further transactions within their territories. The Commission shall be informed of such measures without undue delay (b) In addition, the competent authority of the host Member State may refer the matter to the EBA and request its assistance in accordance with Article 19 of Regulation (EU) No 1093/2010. In that case, the EBA may act in accordance with the powers conferred on it by that Article.
Amendment 767 #
Proposal for a directive
Article 31 – paragraph 2 – point a
Article 31 – paragraph 2 – point a
(a) an assessment of consumer satisfaction with and use of the ESIS;
Amendment 769 #
Proposal for a directive
Article 31 – paragraph 2 – point f
Article 31 – paragraph 2 – point f
Amendment 770 #
Proposal for a directive
Article 31 – paragraph 2 – point g
Article 31 – paragraph 2 – point g
Amendment 773 #
Proposal for a directive
Annex 2 – part A – point 1 – paragraph 2
Annex 2 – part A – point 1 – paragraph 2
Amendment 774 #
Proposal for a directive
Annex 2 – part A – point 1 – paragraph 3
Annex 2 – part A – point 1 – paragraph 3
Amendment 775 #
Proposal for a directive
Annex 2 – part A – point 1 – paragraph 4
Annex 2 – part A – point 1 – paragraph 4
Amendment 776 #
Proposal for a directive
Annex 2 – part A – point 1 – paragraph 5
Annex 2 – part A – point 1 – paragraph 5
Amendment 777 #
Proposal for a directive
Annex 2 – part A – point 1 – paragraph 7
Annex 2 – part A – point 1 – paragraph 7
Amendment 778 #
Proposal for a directive
Annex 2 – part A – point 1 a (new)
Annex 2 – part A – point 1 a (new)
1 a. (Where applicable) Intermediary [Name] Level of Service Provided: [We recommend, having assessed your needs, that your take out this mortgage] / [We are not recommending a particular mortgage for you. However, based on your answers to some questions, we are giving you information about this mortgage so that you can make your own choice] [Remuneration]
Amendment 779 #
Proposal for a directive
Annex 2 – part A – point 2 – paragraph 7
Annex 2 – part A – point 2 – paragraph 7
Amendment 780 #
Proposal for a directive
Annex 2 – part A – point 5 – paragraph 2
Annex 2 – part A – point 5 – paragraph 2
(Where applicable) The exchange rate used for converting your repayment in [credit currency] to [national currency] will be the rate published by [name of institution publishing exchange rate] on [date].calculated on [date]. (Where applicable) [Warning on the variability of the instalments]
Amendment 781 #
Proposal for a directive
Annex 2 – part A – point 6 – introductory part
Annex 2 – part A – point 6 – introductory part
Amendment 783 #
Proposal for a directive
Annex 2 – part A – point 6 – paragraph 1
Annex 2 – part A – point 6 – paragraph 1
Amendment 784 #
Proposal for a directive
Annex 2 – part A – point 6 – paragraph 2
Annex 2 – part A – point 6 – paragraph 2
Amendment 785 #
Proposal for a directive
Annex 2 – part A – point 6 – paragraph 3
Annex 2 – part A – point 6 – paragraph 3
Amendment 786 #
Proposal for a directive
Annex 2 – part A – point 6 – paragraph 4
Annex 2 – part A – point 6 – paragraph 4
Amendment 787 #
Proposal for a directive
Annex 2 – part A – point 6 – paragraph 5
Annex 2 – part A – point 6 – paragraph 5
Amendment 788 #
Proposal for a directive
Annex 2 – part A – point 6 – paragraph 6
Annex 2 – part A – point 6 – paragraph 6
Amendment 789 #
Proposal for a directive
Annex 2 – part A – point 6 – paragraph 7
Annex 2 – part A – point 6 – paragraph 7
Amendment 790 #
Proposal for a directive
Annex 2 – part A – point 8 – introductory part
Annex 2 – part A – point 8 – introductory part
8. Early repayment and portability
Amendment 791 #
Proposal for a directive
Annex 2 – part A – point 8 – paragraph 6
Annex 2 – part A – point 8 – paragraph 6
(Where applicable ) Should you decide to repay this loan early, please contact us to ascertain the exact level of the exit charge at that moment.You do not have the possibility to transfer this loan to another property (Where applicable) You do have the possibility to transfer this loan to another property (Where applicable): [Conditions]
Amendment 792 #
Proposal for a directive
Annex 2 – part A – point 9 – introductory part
Annex 2 – part A – point 9 – introductory part
Amendment 793 #
Proposal for a directive
Annex 2 – part A – point 10 – introductory part
Annex 2 – part A – point 10 – introductory part
Amendment 794 #
Proposal for a directive
Annex 2 – part A – point 11 – introductory part
Annex 2 – part A – point 11 – introductory part
Amendment 795 #
Proposal for a directive
Annex 2 – part A – point 12 – introductory part
Annex 2 – part A – point 12 – introductory part
Amendment 796 #
Proposal for a directive
Annex 2 – part A – point 13 – introductory part
Annex 2 – part A – point 13 – introductory part
Amendment 797 #
Proposal for a directive
Annex 2 – part B – Section 1 – point 1
Annex 2 – part B – Section 1 – point 1
(1) Name, telephone number, geographical address and web address of the creditor shall refer to the creditor's headquarters. The relevant authority for the supervision of lending activities shall be indicated.
Amendment 798 #
Proposal for a directive
Annex 2 – part B – Section 1 – point 3
Annex 2 – part B – Section 1 – point 3
Amendment 799 #
Proposal for a directive
Annex 2 – part B – Section 1 – point 4
Annex 2 – part B – Section 1 – point 4
Amendment 800 #
Proposal for a directive
Annex 2 – part B – section 2 – point (-1a) (new)
Annex 2 – part B – section 2 – point (-1a) (new)
(-1a) Where the product information is being provided to the consumer by an intermediary, that intermediary shall give its name and inform the consumer whether it is providing information on the product as part of an advice service or not. (-1b) It will also explain how it is being remunerated. If it is receiving a fee from the consumer, this should be clearly explained. If it is receiving commission from a creditor, the amount and the name of the creditor should be provided.
Amendment 801 #
Proposal for a directive
Annex 2 – part B – Section 2 – point 1 – paragraph 2
Annex 2 – part B – Section 2 – point 1 – paragraph 2
The description of the type of credit shall clearly indicate how the capital and the interest shall be reimbursed during the life of the credit (i.e. constant, progressive or regressive reimbursements) and specify whether the credit agreement is on capital repayment or interest-only basis.
Amendment 802 #
Proposal for a directive
Annex 2 – part B – Section 2 – point 2
Annex 2 – part B – Section 2 – point 2
(2) This section shall also explain whether the interest rate is fixed or variable and, where applicable, the periods during which it will remain fixed; the frequency of subsequent revisions and the existence of limits to the interest rate variability, such as caps or floors. The formula used to revise the interest rate shall be explained. The creditor shall also indicate where further information on the indices or rates used in the formula can be found. Where the credit currency is different from the national currency, the creditor shall include information on the formula used to calculate the exchange rate spreads and the frequency of their adjustment.
Amendment 803 #
Proposal for a directive
Annex 2 – part B – Section 2 – point 4
Annex 2 – part B – Section 2 – point 4
Amendment 804 #
Proposal for a directive
Annex 2 – part B – Section 2 – point 5 a (new)
Annex 2 – part B – Section 2 – point 5 a (new)
(5a) Where loans are multi-part loans (e.g. part fixed rate, part variable rate), the information should be given for each part of the loan.
Amendment 805 #
Proposal for a directive
Annex 2 – part B – Section 3 – point 1 a (new)
Annex 2 – part B – Section 3 – point 1 a (new)
(1 a) Where loans are multi-part loans (e.g. part fixed rate, part variable rate), the information should be given for each part of the loan.
Amendment 806 #
Proposal for a directive
Annex 2 – part B – Section 3 – point 1 b (new)
Annex 2 – part B – Section 3 – point 1 b (new)
(1 b) Where the interest rate is subject to revision and the amount of some instalments in the future, the creditor should indicate the current value of the instalments and note how this may be subject to change. The creditor shall also include: (1) where relevant, the applicable caps and floors; (2) an example of how the amount of the instalment would vary where the interest rate increases by 1 % or by a higher percentage, where this is more realistic given the magnitude of normal changes to the interest rate and (3) where there is a cap, the instalment amount in the worst-case scenario.
Amendment 807 #
Proposal for a directive
Annex 2 – part B – Section 5 – point 3
Annex 2 – part B – Section 5 – point 3
(3) Where the credit currency is different to the borrower's national currency, the creditor shall include a numerical examples clearly showing how changes to the relevant exchange rate may affect the amount of the instalments. The illustrated exchange rate changes need to be realistic, symmetrical and include at least the same number of unfavourable cases as favourable casea 5% reduction in the value of the borrower's national currency would impact on instalments.
Amendment 808 #
Proposal for a directive
Annex 2 – part B – Section 5 – point 4
Annex 2 – part B – Section 5 – point 4
(4) Where the currency used for the payment of instalments is different from the credit currency, the exchange rate to be used shall be clearly indicated. Such indications shall include the name of the institution publishing the exchange and the momentdate at which the applicable exchange is calculated shall be given.
Amendment 809 #
Proposal for a directive
Annex 2 – part B – Section 6 – point 4 a (new)
Annex 2 – part B – Section 6 – point 4 a (new)
(4 a) Where all or part of the loan is an interest-only loan, the following statement will be inserted prominently at the end of this section “You will still owe [insert amount of loan on an interest-only basis] at the end of the mortgage term. You will need to make separate arrangements to repay this. When comparing the payments on this mortgage with a repayment mortgage, remember to add any money that you may need to pay into a separate savings plan to build up a lump sum to repay this amount.”. (6) If there is a requirement for the consumer to take out a tied savings product as a condition for being granted an interest-only mortgage, the details of this product, including the cost and frequency of any payments, must also be provided with the statement in (5). (7) Where the loan is deferred-interest loan, there should be an explanation of: how and when deferred interest is added to the loan as a cash amount; and what the implications are for the consumer in terms of their remaining debt. (8) Where loans are multi-part loans (e.g. part fixed rate, part variable rate), the information should be given for each part of the loan, and in total.
Amendment 810 #
Proposal for a directive
Annex 2 – part B – Section 7 – point 2
Annex 2 – part B – Section 7 – point 2
(2) The creditor shall also list each of the costs by category, indicating their amount, to whom they are to be paid and at what moment. This does not have to include costs incurred for breaches of contract obligations. Where the amount is not known, the creditor shall provide a possible range or an indication of how the amount will be calculated.
Amendment 811 #
Proposal for a directive
Annex 2 – part B – Section 8 – point 1
Annex 2 – part B – Section 8 – point 1
(1) Where the credit may be repaid early, the creditor shall indicate under what conditions, if any, the borrower can do so. The creditor shall also indicate the steps the borrower should take in order to request the early repayment.
Amendment 812 #
Proposal for a directive
Annex 2 – part B – Section 8 – point 2
Annex 2 – part B – Section 8 – point 2
(2) Where an exit charge will be applied to the early repayment, the creditor shall draw the borrower's attention to this and indicate its amount. In cases where the amount of the exit charge would depend on different factors, such as the amount repaid or the prevailing interest rate at the moment of the early repayment, the creditor shall indicate how the exit charge will be calculated. The creditor shall then provide at least two illustrative examples in order to demonstrate to the borrower the level of the exit charge under different possible scenariosdetail the maximum amount that the charge might be.
Amendment 813 #
Proposal for a directive
Annex 2 – part B – Section 8 – point 2 a (new)
Annex 2 – part B – Section 8 – point 2 a (new)
(2a) Where the consumer has the option of transferring their loan to another property, the conditions for doing this will be explained.
Amendment 814 #
Proposal for a directive
Annex 2 – part B – Section 9 a (new)
Annex 2 – part B – Section 9 a (new)
Section 9 a (Where Appropriate) Additional Features: (1) Where the product contains any of the features listed in (4) below, this section must list these features and provide a brief explanation of: the circumstances in which the consumer can use the feature; any conditions attached to the feature; if the feature being part of the mortgage means that the consumer loses any statutory or other protections usually associated with the feature; and the firm providing the feature (if not the creditor). (2) If the feature contains any additional credit, then this section must explain to the consumer: the total amount of credit (including the mortgage credit); whether the additional credit is secured or not; the relevant interest rates; and whether it is regulated or not. (3) If the feature involves a savings vehicle, the relevant interest rate must be explained. (4) The possible additional features are: 'Underpayments'; 'Payment holidays'; 'Borrow back'; 'Incentives'; 'Additional borrowing available without further approval'; 'Additional secured borrowing'; 'Credit card'; 'Unsecured borrowing'; 'Linked current account'; and 'Linked savings account'.
Amendment 815 #
Proposal for a directive
Annex 2 – part B – Section 10 – point 1
Annex 2 – part B – Section 10 – point 1
Amendment 816 #
Proposal for a directive
Annex 2 – part B – Section 11 – point 1
Annex 2 – part B – Section 11 – point 1
Amendment 817 #
Proposal for a directive
Annex 2 – part B – Section 12 – point 1
Annex 2 – part B – Section 12 – point 1
Amendment 818 #
Proposal for a directive
Annex 2 – part B – Section 13 – point 1
Annex 2 – part B – Section 13 – point 1
Amendment 819 #
Proposal for a directive
Annex 2 – part B – Section 14 – point 2
Annex 2 – part B – Section 14 – point 2
(2) Where applicable, the creditor shall recapitulate in this section the general interest rate revision rules and provide a quantitative example of how the instalments would increase if the credit's interest rate were to increase by X % (as explained in section ‘Illustrative repayment table’) and/or in the worst-case scenario (if there is a cap on the interest rate variability)risk to the consumer from interest rate increases in a clear, brief statement.