Consumer Credit Directive [EU Legislation in Progress]

Written by Issam Hallak (3rd edition, updated on 12.12.2023).

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.

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. The final act was published in the Official Journal on 30 October 2023.

Versions

• December 2023: Consumer Credit Directive (3rd edition)