New consumer credit rules
On July 12, 2022, the Internal Market and Consumer Protection Committee of the Parliament adopted its report on the new rules.
According to the proposed rules, lenders must guarantee standard information to consumers in a more transparent way and allow them to easily consult all the essential information on any device, even on a mobile phone.
Committee members emphasized that credit advertising should not encourage excessively indebted consumers to seek credit and should contain a prominent message that borrowing money costs money.
To help determine whether a loan matches a person’s needs and means before it is granted, MPs want information such as current obligations or cost of living to be requested, but they said that data related to social networks and health should not be considered.
MEPs say the new rules should cover credits up to €150,000, with each country deciding the upper limit according to local conditions. They want overdraft facilities and credit checks, which are becoming more and more common, to be regulated, but believe that it should be left to countries to decide whether to apply consumer credit rules to certain loans, such as and small loans up to 200 euros. , interest-free loans and loans to be repaid in three months and with lower expenses.
The next steps
The Parliament will vote on the report in an upcoming plenary session, after which the Parliament’s negotiators will be able to start discussions with the Council and the Commission on the final text of the legislation.