On 7 February 2022, the European Parliament’s Committee on the Internal Market and Consumer Protection published a draft report on the proposals for the directive on consumer credits.
Since the current Consumer Credit Directive was published in 2008, digitalisation has led to an increased availability of credits for consumers and the possibility to obtain credit online. COVID-19 has accelerated the availability of online products and services, including credit products and made many Europeans face financial difficulties. In these contexts the Commission’s proposal to broaden the scope of the Consumer Credit Directive have been well received. The revision should lead to effective and future proof legislation that will better inform and protect consumers and to create a more predictable environment for European creditors.
The draft report contains a widening of the scope to both hiring and leasing agreements, including leasing agreements without a purchasing option. Agreements without a purchase option have often left consumers paying an overall amount that went way beyond the value of the product leased. The draft report also touches on the fairly new concept of crowdfunding and finding a way to keep up-to-date with new credit products and the way in which credit products should be advertised to avoid misleading consumers.