EU Council and Parliament improve credit protection
The European Council and Parliament have agreed on a new consumer credit directive to enhance credit protection. It will modernize regulations for online credit applications and cover risky loans below €200, crowd-lending platform loans, and buy-now-pay-later products. The agreement awaits approval by the European Council and Parliament.
On 2 December 2022, the European Council and Parliament reached a provisional agreement on a new consumer credit directive (repealing the current 2008 directive). The review of the regulation supports responsible and transparent practices by all users of consumer credit and is meant to also apply to the digital space. Given that a growing number of consumers apply for credit online, the new directive aims to ‘keep up with the trend of digitalisation’ and will apply to certain risky loans not currently covered by the rules: loans below €200, loans offered through crowd-lending platforms, and buy-now-pay-later products.
The agreement is subject to approval by the European Council and the European Parliament.
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