Members' Research Service By / October 6, 2021

Consumer Credit Directive [EU Legislation in Progress]

Consumer credit in the EU is regulated both at national and EU level; the first relevant EU-level legislation was the 1987 Directive 87/102/EEC on consumer credit, which laid down minimum standards for consumer protection.

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Written by Issam Hallak (2nd edition, updated on 26.04.2023).

Consumer credit is a type of loan allowing consumers to purchase consumer goods and services for which they do not have the funds. It is regulated at national and EU level. The Consumer Credit Directive (CCD), in force since 2008, is the relevant EU-level legislation.

While the CCD has undergone several revisions over the past decade, growing digitalisation, insufficient harmonisation and issues affecting consumer protection, among other things, have prompted the Commission to publish a proposal for a new directive. This proposal brings crowdfunding into the scope of the CCD, expands and clarifies the definitions, and adds new articles, relating for instance to new obligations for creditors, tying and bundling practices, ancillary services, advisory services, unsolicited credit sales, conduct of business obligations for creditors and requirements for their staff. The proposal is part of the Commission’s new consumer agenda aimed at updating the overall strategic framework of EU consumer policy.

The proposal is currently being examined by the co-legislators. Within the European Parliament, the file was assigned to the IMCO committee. The committee adopted its report on 12 July 2022, and the decision to enter into interinstitutional negotiations was confirmed by plenary on 14 September 2022. On 2 December 2022, the Council and Parliament announced that a provisional agreement had been reached.


Proposal for a Directive of the European Parliament and of the Council on consumer credits
Committee responsible:Internal Market and Consumer Protection (IMCO)COM(2021) 347
Rapporteur:Kateřina Konečná (The Left, Czechia)2021/0171(COD)
Shadow rapporteurs:Tomislav Sokol (EPP, Croatia)
Maria-Manuel Leitão-Marques (S&D, Portugal)
Stéphanie Yon-Courtin (Renew, France)
Malte Gallée (Greens/EFA, Germany)
Alessandra Basso (ID, Italy)
Eugen Jurzyca (ECR, Slovakia)
Ordinary legislative procedure (COD) (Parliament and Council on equal footing – formerly ‘co-decision’)
Next steps expected: Submitted to plenary

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