BETA

Activities of Philippe DE BACKER related to 2011/0062(COD)

Plenary speeches (1)

Credit agreements relating to residential property (debate)
2016/11/22
Dossiers: 2011/0062(COD)

Shadow reports (1)

REPORT on the proposal for a directive of the European Parliament and of the Council on credit agreements relating to residential property PDF (1 MB) DOC (1 MB)
2016/11/22
Committee: ECON
Dossiers: 2011/0062(COD)
Documents: PDF(1 MB) DOC(1 MB)

Amendments (100)

Amendment 178 #
Proposal for a directive
Recital 3
(3) The financial crisis has shown that irresponsible behaviour by market participants can undermine the foundations of the financial system, leading to a lack of confidence among all parties, in particular consumers, and potentially severe social and economic consequences. Many consumerConsumers in some Member States have lost confidence in the financial sector and borrowers in those Member States have found their loans increasingly unaffordable, with defaults and forced sales rising. In view of the problems brought to light in the financial crisis and in the context of efforts to ensure an efficient and competitive internal market, the Commission has proposed measures with regard to credit agreements relating to residential immovable property, including a reliable framework on credit intermediation, in the context of delivering responsible and reliable markets for the future and restoring consumer confidence.25
2011/10/06
Committee: ECON
Amendment 179 #
Proposal for a directive
Recital 3 a (new)
(3a) The history of the financial crisis shows that the crisis originated in the United States of America, and affected Europe through derivatives. Europe must thus make sure to draft EU legislation addressing the specific EU concerns and not addressing the American roots of the crisis.
2011/10/06
Committee: ECON
Amendment 183 #
Proposal for a directive
Recital 4
(4) A series of problems in some EU mortgage markets associated with irresponsible lending and borrowing at the pre- contractual stage and the potential scope for irresponsible behaviour by credit intermediaries and non-credit institutions have been identified. Some problems concerned loans denominated in a foreign currency which consumers had taken out in that currency to take advantage of the interest rate offered but without having an adequate understanding of the currency risk involved. These problems are driven by market and regulatory failures as well as other factors such as the general economic climate and low levels of financial literacy. Other problems include ineffective, inconsistent, or non-existent registration, authorisation and supervision regimes for credit intermediaries and non-credit institutions providing credit for residential immovable property. The problems identified have potentially significant macroeconomic spill-over effects, can lead to consumer detriment, act as economic or legal barriers to cross-border activity and create an unlevel playing field between actors.
2011/10/06
Committee: ECON
Amendment 187 #
Proposal for a directive
Recital 5
(5) In order to facilitate the emergence of a smoothly functioning internal market with a highan adequate level of consumer protection in the area of credit agreements relating to residential immovable property, a harmonised Union framework needs to be established in a number of areas. It is further necessary to establish harmonised standards in order to ensure that consumers looking for credit agreements relating to residential immovable property are able to do so confident in the knowledge that the institutions they interact with act in a professional and responsible manner.
2011/10/06
Committee: ECON
Amendment 188 #
Proposal for a directive
Recital 5 a (new)
(5a) In order to guarantee maximum consumer freedom and at the same time not hindering competition in the banking sector, national and regional differences in the residential immovable property credit market need to be the driving criteria to establish a harmonised Union framework.
2011/10/06
Committee: ECON
Amendment 191 #
Proposal for a directive
Recital 8
(8) As consumers and enterprises are not in the same position, they do not need the same level of protection. While it is important to guarantee consumers’ rights by provisions that cannot be derogated from by contract, it is reasonable to let enterprises and organisations engage in other agreements. This Directive should therefore only apply to credit granted to consumers. Member States should, however, have the possibility to extend the scope to natural or legal persons that are not consumers, notably micro-enterprises, as defined by Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises26 .
2011/10/06
Committee: ECON
Amendment 195 #
Proposal for a directive
Recital 9
(9) The objective of this Directive is to ensurepromote responsible lending and borrowing in the context of a transparent, efficient and competitive internal market for loans related to residential immovable property, while ensuring that all credits provided to consumers benefit from a high level of protection. It should therefore apply to credits secured by real estate, or credits which are used to purchase a property in some Member States and to credits for the renovation of residential property that are not covered by Directive 2008/48/EC of the European Parliament and of the Council of 23 April 2008 on credit agreements for consumers and repealing Council Directive 87/102/EEC27 which lays down rules at Union level concerning consumer credit agreements. Furthermore, this Directive should not be applied to certain types of credit agreements where the credit is granted by an employer to his employees under certain circumstances, as already provided in Directive 2008/48/EC.
2011/10/06
Committee: ECON
Amendment 197 #
Proposal for a directive
Recital 10 a (new)
(10a) This Directive should not apply to credit agreements which relate to loans granted to a restricted public under a statutory provision with a general interest purpose, and at lower interest rates than those prevailing on the market or free of interest or on other terms which are more favourable to the consumer than those prevailing on the market and at interest rates not higher than those prevailing on the market.
2011/10/06
Committee: ECON
Amendment 201 #
Proposal for a directive
Recital 14
(14) At the same time, it is important take into consideration the specificities of credit agreements relating to residential immovable property which justify a differentiated approach. Given the nature and the possible consequences of a credit agreement relating to residential immovable property for the consumer, advertising materials and personalised pre- contractual information should include specific risk warnings, for instance about the nature and implications of taking out a security. Nevertheless, the nature of the advertising medium should be taken into account and thus diversification on the rules should be foreseen according to the medium. Following what already existed as a voluntary approach by the industry concerning home loans, general pre- contractual information should be made available at all times in addition to the personalised pre-contractual information. Furthermore, a differentiated approach is justifiable in order to take into consideration the lessons learnt from the financial crisis in order to ensure that loan origination takes place in a sound manner. In this respect, the provisions on the creditworthiness assessment should be strengthened in comparison to consumer credit, more precise information should be provided by credit intermediaries on their status and relationship with the creditors in order to disclose potential conflicts of interest, and all actors involved in the origination of credit agreements relating to residential immovable property should be adequately authorised, registered and supervised.
2011/10/06
Committee: ECON
Amendment 202 #
Proposal for a directive
Recital 14
(14) At the same time, it is important take into consideration the specificities of credit agreements relating to residential immovable property which justify a differentiated approach. Given the nature and the possible consequences of a credit agreement relating to residential immovable property for the consumer, advertising materials and personalised pre- contractual information should include adequate specific risk warnings, for instance about the nature and implications of taking out a security. Following what already existed as a voluntary approach by the industry concerning home loans, general pre- contractual information should be made available at all times in addition to the personalised pre-contractual information. Furthermore, a differentiated approach is justifiable in order to take into consideration the lessons learnt from the financial crisis in order to ensure that loan origination takes place in a sound manner. In this respect, the provisions on the creditworthiness assessment should be strengthened in comparison to consumer credit, more precise information should be provided by credit intermediaries on their status and relationship with the creditors in order to disclose potential conflicts of interest, and all actors involved in the origination of credit agreements relating to residential immovable property should be adequately authorised, registered and supervised.
2011/10/06
Committee: ECON
Amendment 203 #
Proposal for a directive
Recital 14 a (new)
(14a) It is also necessary to regulate some additional areas to reflect the specificity of loans relating to residential immovable property. Given the significance of the transaction it is necessary to ensure that consumers are provided with sufficient time to take a decision. Nevertheless, due to the differences in mortgage traditions and legal requirements between the Member States, it is not possible to standardise a fixed reflection period or a right to withdrawal throughout the Union.
2011/10/06
Committee: ECON
Amendment 205 #
Proposal for a directive
Recital 14 b (new)
(14b) Tying or bundling of products or services can provide the consumer with a commercial advantage when negotiating the mortgage credit. It is therefore important that such activities should not be prohibited. When tying or bundling products the consumer needs to be informed, in a transparent and coherent way, on the costs, content and terms of conditions of the products or services.
2011/10/06
Committee: ECON
Amendment 209 #
Proposal for a directive
Recital 16
(16) The applicable legal framework should give consumers the confidence that creditors and credit intermediaries are acting in the best interests ofct transparently towards the consumer. A key aspect of ensuring such consumer confidence is the requirement to ensure a high degree of fairness, honesty and professionalism in the industry. While this Directive should require relevant knowledge and competence to be proven at the level of the institution, Member States should be free to introduce or maintain such requirements applicable to individual natural persons.
2011/10/06
Committee: ECON
Amendment 212 #
Proposal for a directive
Recital 16 a (new)
(16a) The applicable legal framework should not prevent consumers and creditors or consumers and credit intermediaries to conclude a unique contract, adapted to the requirements of both parties.
2011/10/06
Committee: ECON
Amendment 213 #
Proposal for a directive
Recital 16 b (new)
(16b) The legal framework should not impose extra costs on the industry by designing new rules that do not serve the consumer’s interest.
2011/10/06
Committee: ECON
Amendment 214 #
Proposal for a directive
Recital 17
(17) Creditors and credit intermediaries frequently use advertisements, often featuring special terms and conditions, to attract consumers to a particular product. Consumers should, therefore, be protected against unfair or misleading advertising practices and should be able to compare advertisements. Specific provisions on the advertising of credit agreements relating to residential immovable property and a list of items to be included in advertisements and marketing materials directed at consumers are necessary to enable them to compare different offers. Such provisions should be proportionate to the nature and medium of the advertisement and should take into account the specificities of credit agreements relating to residential immovable property, for instance, the fact that if the loan repayments are not met, there is a risk of the consumer losing the property. Member States should remain free to introduce or maintain disclosure requirements in their national laws regarding advertising which does not contain information on the cost of credit.
2011/10/06
Committee: ECON
Amendment 216 #
Proposal for a directive
Recital 20
(20) TIn accordance with the Commission Recommendation 2001/193/EC on pre-contractual information to be given to consumers by lenders offering home loans32 endorsed the Voluntary Code agreed in 2001 between associations and federations representing lenders and consumers and which contains athe Commission monitored the European Standardised Information Sheet (ESIS). This that provides information, personalised for the borrower, on the credit agreement being provided. In its Recommendation, the Commission committed to monitoring compliance with the Code as well as its effectiveness, and to consider presenting binding legislation should the terms of the Recommendation not be fully complied with. Evidence collected by the Commission has since highlighted the need to revise the content and presentation of the ESIS to ensure that it is clear, understandable and contains all information found to be relevant for consumers. The content and layout of the ESIS should incorporate the necessary improvements identified during consumer testing in all Member States. The structure of the sheet (in particular, the order of the information items) should be revised, the wording should be more user-friendly, while sections, such as ‘nominal rate’ and ‘annual percentage rate of charge’, should be merged and new sections, such as ‘external complaint body’ and ‘risks and warnings’, should be added.
2011/10/06
Committee: ECON
Amendment 218 #
Proposal for a directive
Recital 22
(22) The consumer may still need additional assistance in order to decide which credit agreement, within the range of products proposed, is the most appropriate for his needs and financial situation. Creditors, and where the transaction is through a credit intermediary, credit intermediaries should provide such assistance in relation toexplanation about the credit products which they offer to the consumer. The relevant information, as well as the essential characteristics of the products proposed, should therefore be explained to the consumer in a personalised manner so that the consumer can understand the effects which they may have on his economic situation. Member States could determine when and to what extent such explanations are to be given to the consumer, taking into account the particular circumstances in which the credit is offered, the consumer’s need for assistance and the nature of individual credit products.
2011/10/06
Committee: ECON
Amendment 219 #
Proposal for a directive
Recital 22
(22) The consumer may still need additional assistance in order to decide which credit agreement, within the range of products proposed, is the most appropriate for his needs and financial situation. Creditors, and where the transaction is through a credit intermediary, credit intermediaries should provide such assistance in relation to the credit products which they offer to the consumer. The relevant information, as well as the essential characteristics of the products proposed, should therefore be explained to the consumer in a personalised manner so that the consumer can understand the effects which they may have on his economic situation. Member States could determine when and to what extent such explanations are to be given to the consumer, taking into account the particular circumstances in which the credit is offered, the consumer’s need for assistance and the nature of individual credit products. Such explanation and provision of personalised information should not necessarily constitute a personal advice.
2011/10/06
Committee: ECON
Amendment 221 #
Proposal for a directive
Recital 23
(23) In order to promote the establishment and functioning of the internal market and to ensure a high degree of protection for consumers throughout the Union, it is necessary to ensure the comparability of information relating to annual percentage rates of charge throughout the Union. The total cost of the credit to the consumer should comprise all the costs that the consumer has to pay in direct connection with the credit agreement, except for notarial costscosts regarding the guarantees (i.e. notary fees; registration and/or inscription taxes and/or fees; costs of pledging titles). Also indirect costs or incentives that will only be settled later (i.e. tax incentives) should not be taken into account. It should therefore include interest, commissions, taxes, fees for credit intermediaries and any other fees as well as the cost of credit insurance, the valuation of the property or other ancillary products, where these are obligatory in order to obtain the credit on the terms and conditions marketed. As the annual percentage rate of charge can at the pre- contractual stage be indicated only through an example, such an example should be representative. Therefore, it should correspond, for instance, to the average duration and total amount of credit granted for the type of credit agreement under consideration. Given the complexities of calculating an annual percentage rate of charge (for instance, for credits based on variable interest rates or non-standard amortisation) and in order to be able to accommodate product innovation, technical regulatory standards could be employed to amend or specify the method of calculation of the annual percentage rate of charge. The definition of and methodology used for calculating the annual percentage rate of charge in this Directive should be the same as those in Directive 2008/48/EC in order to facilitate consumer understanding and comparison. Those definitions and methodologies may, however, differ in the future should Directive 2008/48/EC be modified at a later date. Member States are free to maintain or introduce prohibitions on unilateral changes to the borrowing rate by the creditor.
2011/10/06
Committee: ECON
Amendment 227 #
Proposal for a directive
Recital 24
(24) An assessment of creditworthiness should take into consideration all necessary factors that could influence a consumer’s ability to repay over the lifetime of the loan including, but not limited to, the consumer’s income, regular expenditures, credit score, past credit history, ability to handle interest rate adjustments, and other existing credit commitments. Additional provisions may be necessary to further elaborate on the different elements that may be taken into consideration in a creditworthiness assessment. Member States may issue guidance on the method and criteria to assess a consumer’s creditworthiness, for example by setting limits on loan-to-value or loan-to-income ratios.
2011/10/06
Committee: ECON
Amendment 229 #
Proposal for a directive
Recital 25
(25) A negative creditworthiness assessment should indicate to the creditor that the consumer is unable to afford the credit and as a consequence, the creditor should not grant the credit. Such a negative outcome may derive from a wide range of reasons, including but not limited to the consultation of a database or a negative credit score. A positive creditworthiness assessment should not constitute an obligation for the creditor to provide credit.
2011/10/06
Committee: ECON
Amendment 234 #
Proposal for a directive
Recital 26
(26) CUpon the request of the creditor, consumers should provide all available relevant information on their financial situation and personal circumstances to the creditor or intermediary in order to facilitate the creditworthiness assessment. The consumer should not, however, be penalised where he is not in a position to provide certain information or assessments of the future evolution of his financial situation. In situations where consumers knowingly provide incomplete or inaccurate information, Member States should be able to determine the appropriate penalties.
2011/10/06
Committee: ECON
Amendment 235 #
Proposal for a directive
Recital 27
(27) Consultation of a credit database is a useful element in the assessment of creditworthiness. Some Member States require creditors to assess the creditworthiness of consumers on the basis of a consultation of the relevant database. Creditors should also be able to consult the credit database over the lifetime of the loan in order to identify and assess the potential for default. In the event that such a potential is evident or objectively demonstrated, the creditor should contact the consumer to discuss the different options to avoid the possibility of default, such as a rescheduling of the loan. In any event, the creditor should not consider withdrawing the credit without having first explored all possible alternatives with the consumer to avoid default. Pursuant to Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data33 , consumers should be informed by creditors of the consultation of the credit database prior to its consultation, and should have the right to access the information held on them in such a credit database in order to, where necessary, rectify, erase or block the personal data concerning them processed therein where it is inaccurate or has been unlawfully processed.
2011/10/06
Committee: ECON
Amendment 237 #
Proposal for a directive
Recital 29
(29) Where a decision to reject an application for credit is based on data obtained through the consultation of a database or the lack of data therein, the creditor should inform the consumer thereof, of the name of the database consulted and of any other elements required by Directive 95/46/EC so as to enable the consumer to exercise his right to access and, where necessary, rectify, erase or block personal data concerning him and processed therein. Where a decision to reject an application for credit is based on an automated decision or on systematic methods such as credit scoring systems, the creditor should inform the consumer thereof and explain the logic involved in the decision and of the arrangements enabling the consumer to request the automated decision to be reviewed manually. However, the creditor should not be required to give such information when to do so would be prohibited by other Union legislation such as legislation on money laundering or the financing of terrorism. Neither should such information be provided where to do so would be contrary to the objectives of public policy or public security such as the prevention, investigation, detection or prosecution of criminal offences.deleted
2011/10/06
Committee: ECON
Amendment 239 #
Proposal for a directive
Recital 29 a (new)
(29a) An assessment of an application for credit cannot be solely based on data obtained through the consultation of a database, nor can it be an automated decision or can it be solely based on systematic methods such as credit scoring systems.
2011/10/06
Committee: ECON
Amendment 240 #
Proposal for a directive
Recital 29 b (new)
(29b) When a database is used during the assessment of an application for credit, and the result of the database consultation is negative for the consumer, based on the data or on the lack of data therein, the creditor should inform the consumer thereof, of the name of the database consulted and of any other elements required by Directive 95/46/EC so as to enable the consumer to exercise his right to access and, where necessary, rectify, erase or block personal data concerning him and processed therein.
2011/10/06
Committee: ECON
Amendment 242 #
Proposal for a directive
Recital 31
(31) In order to be in a position to understand the nature of the service, consumers should be made aware of what constitutes an expert personalised recommendation on suitable credit agreements for that consumer’s needs and financial situation (‘advice’) and when it is being provided and when it is not. It is therefore important to ensure that the service of advice is a distinct service which is separately remunerated in a manner transparent to the consumer. Consumers should also be able to rely on the competence of the adviser. Those providing advice should comply with general standards in order to ensure that the consumer is presented with a range of products suitable for his needs and circumstances and should also have the necessary professional competence to provide expert advice. That service should be based on a fair and sufficiently wide- ranging analysis of the products available on the market, in the case of provision of advice by an untied credit intermediary, or from within the creditor’s organisation in the case of provision of advice by the creditor or a tied credit intermediary, and on a close inspection of the consumer’s financial situation, preferences and objectives. Such an assessment should be based on up-to-date information and reasonable assumptions on the consumer’s circumstances during the lifetime of the loan. Member States may clarify how the suitability of a given product for a consumer should be assessed in the context of the provision of advice. The act of making a binding offer to a consumer does not in itself constitute advice.
2011/10/06
Committee: ECON
Amendment 247 #
Proposal for a directive
Recital 31 a (new)
(31a) In order to achieve the objectives of this Directive it is necessary to ensure that the performance of credit agreements and not just the formation of the agreement is sound. This requires a degree of flexibility, so as to ensure that the financial system serves the needs of consumers while preserving the indemnity of financial institutions. It is therefore appropriate, in line with the recommendations of the FSB, to allow contractual flexibility which enables creditors and consumers to manage and reduce the risks to which they are exposed during the life of the loan, through a contractual right to flexibility in payments, a right to convert a credit agreement back into the national currency and an appropriately calibrated contractual right to repay loans early. It is also appropriate to allow contractually concluded situations where either the creditor or consumer wishes to transfer the credit agreement, and to allow consumers to retain the credit agreement while providing different collateral provided such collateral is equivalent.
2011/10/06
Committee: ECON
Amendment 252 #
Proposal for a directive
Recital 32
(32) A consumer’s ability to repay his credit prior to the expiry of his credit agreement may play an important role in promoting competition in the single market and the free movement of EU citizens. However, substantial differences exist between the national principles and conditions under which consumers have the ability to repay and the conditions under which such early repayment can take place. Whilst recognising the diversity in mortgage funding mechanisms and the range of products available, certain standards with regard to early repayment of credit are essential at Union level in order to ensure that consumers have the possibility to discharge their obligations before the date agreed in the credit agreement and the confidence to shop around for the best products to meet their needs. Member States should therefore ensure, either by legislation or by means of contractual clauses, that consumers have a statutory or contractual right to early repayment; nevertheless, Member States should be able to define the conditions for the exercise of such a right. These conditions may include time limitations on the exercise of the right, different treatmentthe exercise of such a right, should be subject to conditions depending on the type of the borrowing rate, whether fixed or variable, restrictions with regard to the circumstances under which the right may be exercised. Member States cshould also providensure that the creditor ishould be entitled to fair and objectively justified compensation for potential costs and losses directly linked to early repayment of the credit. The Member State should ensure that the consumer is informed about this compensation before concluding the mortgage contract and that the compensation is included in the terms and conditions of the contract. In any event if the early repayment falls within a period for which the borrowing rate is fixed, exercise of the right may be made subject to the existence of a speciallegitimate interest on the part of the consumer. Such speciallegitimate interest may for example occur in case of divorce or unemployment. Where a Member State chooses to lay down such conditions, these should not make the exercise of the right excessively difficult or onerous for the consumer.
2011/10/06
Committee: ECON
Amendment 256 #
Proposal for a directive
Recital 32 a (new)
(32a) The work commissioned by the G20 in response to the crisis has demonstrated that problems can arise where residential immovable property is inappropriately valued and where the role of the property in providing collateral for a loan or financial instrument is unclear. Such problems can have implications for individual consumers, financial stability and the wider economy. Member States are therefore asked to closely monitor that existing international standards are being used when valuing a property.
2011/10/06
Committee: ECON
Amendment 269 #
Proposal for a directive
Recital 40
(40) In order to take account of developments in the markets for credit relating to residential immovable property, including the range of products available, the Commission should be empowered to adopt delegated acts in accordance with Article 290 of the Treaty on the Functioning of the European Union to amend the content of the standard information items to be included in advertising, the content and format of the European Standardised Information Sheet (ESIS), the content of the information disclosures by credit intermediaries, the formula and the assumptions used to calculate the annual percentage rate of charge and the criteria to be taken into account for the assessment of the consumer’s creditworthiness.deleted
2011/10/06
Committee: ECON
Amendment 290 #
Proposal for a directive
Article 2 – paragraph 1 – point b
(b) Credit agreements the purpose of which is to acquire or retain property rightsrights in rem in land or in an existing or projected residential building.
2011/10/06
Committee: ECON
Amendment 294 #
Proposal for a directive
Article 2 – paragraph 1 – point c a (new)
(ca) Credit agreements that do not require the reimbursement of the capital but are only repaid at the end of the term of the agreement, or those whose purpose is to provide temporary financing between the sale of one immovable property and the purchase of another.
2011/10/06
Committee: ECON
Amendment 295 #
Proposal for a directive
Article 2 – paragraph 1 – point c b (new)
(cb) Credit agreements for the refinancing of an existing credit agreement within the meaning of (a), (b), (c) and (d).
2011/10/06
Committee: ECON
Amendment 299 #
Proposal for a directive
Article 2 – paragraph 2 – point a
(a) Credit agreements designed to facilitate consumption which will eventually be repaid from the sale proceeds of an immovable property.
2011/10/06
Committee: ECON
Amendment 303 #
Proposal for a directive
Article 2 – paragraph 2 – point b a (new)
(ba) Credit agreements which relate to loans granted to a restricted public under a statutory provision with a general interest purpose, and at lower interest rates than those prevailing on the market or free of interest or on other terms which are more favourable to the consumer than those prevailing on the market and at interest rates not higher than those prevailing on the market.
2011/10/06
Committee: ECON
Amendment 325 #
Proposal for a directive
Article 3 – paragraph 1 – point j
(j) ‘Staff’ means any employees of the creditor or credit intermediary having direct contacts with the consumers and who are engaged inperform the activities covered by article 3(b) and (e) of this Directive.
2011/10/06
Committee: ECON
Amendment 327 #
Proposal for a directive
Article 3 – paragraph 1 – point k
(k) ‘Total cost of the credit to the consumer’ means the total cost of the credit to the consumer as defined in Article 3(g) of Directive 2008/48/ECall costs, including interest, commissions, taxes and any other kind of fees, which the consumer is required to pay in direct connection with the credit agreement and which are known to the lender, except costs regarding the guarantees and except insurance premiums, credit insurance however not being included in the latter; costs in respect of ancillary services relating to the credit agreement, in particular costs relating to the valuation of the property, are also included if the conclusion of a service contract is compulsory in order to obtain the credit or to obtain it on the terms and conditions marketed and these costs are known by the lender.
2011/10/06
Committee: ECON
Amendment 333 #
Proposal for a directive
Article 3 – paragraph 1 – point o
(o) ‘Creditworthiness assessment’ means the evaluation of a consumer’s ability to meet his debt obligationsll relevant factors known to the creditor at the time of the application to determine whether or not the prospective borrower will be able to repay the credit.
2011/10/06
Committee: ECON
Amendment 340 #
Proposal for a directive
Article 3 – paragraph 1 – point r a (new)
(ra) ‘Advice’ means the provision of a personal recommendation to a given consumer in respect of one or more transactions relating to credit agreements which suits best his needs, taking into account his specific situation.
2011/10/06
Committee: ECON
Amendment 343 #
Proposal for a directive
Article 3 – paragraph 1 – point r b (new)
(rb) ‘Valuer’ means a natural or legal person who, in the course of his trade, business or profession, carries out valuations of residential immovable property or the land on which such residential immovable property is or could be situated.
2011/10/06
Committee: ECON
Amendment 355 #
Proposal for a directive
Article 5 – paragraph 1
1. Member States shall require that, when granting, intermediating or advising on credit and, where appropriate, ancillary services to consumers, the creditor or the credit intermediary acts honestly, fairly and, professionally in accordance with the best interests of the consumerand transparently.
2011/10/06
Committee: ECON
Amendment 360 #
Proposal for a directive
Article 5 – paragraph 2
2. Member States shall ensure that the manner in which creditors remunerate their staff and the relevant credit intermediaries and the manner in which credit intermediaries remunerate their staff do not impede compliance with the obligation to act in accordance with the best interests of the consumers, as referred to in paragraph 1.
2011/10/06
Committee: ECON
Amendment 373 #
Proposal for a directive
Article 6 – paragraph 1 – point a
(a) The staff of creditors and credit intermediaries who are in direct contact with the consumer possess an appropriate level of knowledge and competence in relation to the offering or granting of credit agreements within the meaning of Article 2, or the activity of credit intermediation as defined in Article 3(e). Where the conclusion of a credit agreement includes an ancillary service related to it, in particular insurance or investment services, they shall also possess appropriate knowledge and competence in relation to that ancillary service in order to satisfy the requirements set out in Article 19 of Directive 2004/39/EC and Article 4 of Directive 2002/92/EC.
2011/10/06
Committee: ECON
Amendment 381 #
Proposal for a directive
Article 6 – paragraph 2
2. Home Member States shall ensure that the appropriate level of knowledge and competence is determined on the basis of recognised qualifications or experience.deleted
2011/10/06
Committee: ECON
Amendment 384 #
Proposal for a directive
Article 6 – paragraph 2 a (new)
2a. Home Member States can ask the authorised creditors and credit intermediaries to monitor the remuneration of their staff, as defined in Article 3, paragraph 2 (j) of this Directive, as regards with ethical business.
2011/10/06
Committee: ECON
Amendment 385 #
Proposal for a directive
Article 6 – paragraph 3
3. Home Member States shall make public the criteria they have established in order for credit intermediaries or creditors’ staff to meet their competence requirements. Such criteria shall include a list of any recognised qualifications.deleted
2011/10/06
Committee: ECON
Amendment 394 #
Proposal for a directive
Article 6 – paragraph 4
4. Powers are delegated to the Commission in accordance with Article 26 and subject to the conditions of Articles 27 and 28, to specify the requirements provided in paragraph 1 and 2 of this Article, and in particular, the necessary requirements for appropriate knowledge and competence.
2011/10/06
Committee: ECON
Amendment 437 #
Proposal for a directive
Article 9 – paragraph 1 – subparagraph 2 – point g
(g) an indicative example of the total cost of credit foramount payable by the consumer and annual percentage rate of charge;
2011/10/06
Committee: ECON
Amendment 460 #
Proposal for a directive
Article 9 – paragraph 2 – subparagraph 1
Member States shall ensure that the creditor and, where applicable, the credit intermediary, without undue delay after the consumer has given the necessary information on his needs, financial situation and preferences in accordance with Article 145, provides the consumer with the personalised information needed to compare the credits available on the market, assess their implications and take an informed decision on whether to conclude a credit agreement. Such information, on paper or on another durable medium, shall be provided by means of the European Standardised Information Sheet (‘ESIS’), as set out in Annex II.
2011/10/06
Committee: ECON
Amendment 471 #
Proposal for a directive
Article 9 – paragraph 2 – subparagraph 2
Member States shall ensure that when an offer binding on the creditor is provided to the consumer, it shall be accompanied by an ESIS. In such circumstances, Member States shall ensure that the credit agreement cannot be concluded until the consumer has had sufficient time to compare the offers, assess their implications and take an informed decision on whether to accept an offer, regardless of the means of conclusion of the contract. If the consumer has a right of withdrawal in respect of the credit agreement, this shall in itself be regarded as providing him with sufficient time to take a decision.
2011/10/06
Committee: ECON
Amendment 481 #
Proposal for a directive
Article 9 – paragraph 3
3. Powers are delegated to the Commission in accordance with Article 26 and subject to the conditions of Articles 27 and 28, to amend the standard information items laid down in paragraph 1 of this Article and the content and format of the ESIS set out in Annex II. In particular, such delegated acts shall, where necessary: (a) amend the list of the standard information items laid down in paragraph 1 of this Article; (b) delete any of the information items laid down Annex II; (c) make additions to the list of information items laid down in Annex II; (d) amend the presentation of the contents of the ESIS as laid down in Annex II; (e) elaborate on the instructions for the completion of the ESIS as laid down in Annex II.
2011/10/06
Committee: ECON
Amendment 491 #
Proposal for a directive
Article 9 a (new)
Article 9a Ancillary services Member states shall not prohibit creditors or credit intermediaries from tying or bundling of products or services when proposing a credit offer to the consumer. When tying or bundling products or services the creditor or credit intermediary need to inform the consumer, in a reasonable time before concluding the contract and in a transparent and coherent way, on the costs, content and terms of conditions of the ancillary products or services.
2011/10/06
Committee: ECON
Amendment 506 #
Proposal for a directive
Article 10 – paragraph 3
3. Powers are delegated to the Commission in accordance with Article 26 and subject to the conditions of Articles 27 and 28, to update the list of information items on credit intermediaries to be provided to the consumer, as laid down in paragraph 1 of this Article. In particular, the Commission, when adopting such delegated acts shall amend, where necessary, the information items laid down in paragraph 1 of this Article.
2011/10/06
Committee: ECON
Amendment 512 #
Proposal for a directive
Article 10 – paragraph 4
4. In order to ensure uniform conditions of application of paragraph 1 of this Article, powers are conferred on the Commission to determine, where necessary, a standardised format and the presentation of the information items set out in paragraph 1 of this Article.deleted
2011/10/06
Committee: ECON
Amendment 515 #
Proposal for a directive
Article 11 – paragraph 1
Member States shall ensure that creditors and, where applicable, credit intermediaries provide adequate explanations to the consumer on the proposed credit agreement(s) and any ancillary service(s), in order to place the consumer in a position enabling him to assess whether the proposed credit agreements are is adapted to his needs and financial situation. An adequ, where appropriate by explanation shall include the provision of personalised information on the characteristics of the credits on offer, without however formulating any recommendation. Creditors and, where applicable, credit intermediaries shall accurately assess the level of knowledge and experience with credit of the consumer by any means necessary so as to enable the creditor or the intermediary to determine the level of explanations to be given to the consumer and adjust such explanations accordinglyining the pre-contractual information to be provided in accordance with Articles 9 and 10, the essential characteristics of the products proposed and the specific effects they may have on the consumer, including the consequences of default in payment by the consumer. Member States may adapt the manner by which and the extent to which such assistance is given, as well as by whom it is given, to the particular circumstances of the situation in which the credit agreement is offered, the person to whom it is offered and the type of credit offered.
2011/10/06
Committee: ECON
Amendment 530 #
Proposal for a directive
Article 12 – paragraph 2 – subparagraph 2
Where the opening of an account is obligatory in order to obtain the credit on the terms and conditions marketed, the costs of maintaining such an account, the costs of using a means of payment for both payment transactions and drawdowns on that account, and other costs relating to payment transactions shall be included in the total cost of credit to the consumer, unless the costs have been clearly and separately shown in the credit agreement or in any other agreement concluded with the consumer.
2011/10/06
Committee: ECON
Amendment 538 #
Proposal for a directive
Article 12 – paragraph 5
5. Powers are delegated to the Commission in accordance with Article 26 and subject to the conditions of Articles 27 and 28, to amend the formula and the assumptions used to calculate the annual percentage rate of charge as set out in Annex I. The Commission shall, when adopting such delegated acts, amend, where necessary, the formula or assumptions laid down in Annex I, in particular if the assumptions set out in this Article and in Annex I do not suffice to calculate the annual percentage rate of charge in a uniform manner or are not adapted any more to the commercial situation at the market.
2011/10/06
Committee: ECON
Amendment 568 #
Proposal for a directive
Article 14 – paragraph 2 – point a
(a) Where the assessment of the consumer's creditworthiness results in a negative prospect for his ability to repay the credit over the lifetime of the credit agreement, the creditor refuses credit.deleted
2011/10/06
Committee: ECON
Amendment 575 #
Proposal for a directive
Article 14 – paragraph 2 – point a a (new)
(a a) An assessment of an application for credit will not be solely based on data obtained through the consultation of a database. Nor can it be an automated decision or can it be solely based on systematic methods such as credit scoring systems.
2011/10/06
Committee: ECON
Amendment 579 #
Proposal for a directive
Article 14 – paragraph 2 – point b
(b) Where the credit application is rejected, the creditor informs the consumer immediatwithout delay and without charge of the reasons for rejection.
2011/10/06
Committee: ECON
Amendment 581 #
Proposal for a directive
Article 14 – paragraph 2 – point d
(d) Where the credit application is rejected on the basis of the data contained, or lack thereof, in a database that has been consulted, the creditor informs the consumer immediately and without charge of the name of the database that was consulted as well as of its controller and of his right to access and, where necessary, his right to rectify his data in that database.deleted
2011/10/06
Committee: ECON
Amendment 584 #
Proposal for a directive
Article 14 – paragraph 2 – point d a (new)
(d a) When a database is used during the assessment of an application for credit, and the result of the database consultation is negative for the consumer, based on the data or on the lack of data therein, the creditor informs, immediately and without charge, the consumer thereof, of the name of the database consulted, of its controller and of any other elements required by Directive 95/46/EC so as to enable the consumer to exercise his right to access and, where necessary, rectify, erase or block personal data concerning him and processed therein.
2011/10/06
Committee: ECON
Amendment 589 #
Proposal for a directive
Article 14 – paragraph 2 – point e
(e) Without prejudice to the general right of access contained in Article 12 of the Directive 95/46/EC, where the application is rejected on the basis of an automated decision or a decision based on methods such as automated credit scoring, the creditor informs the consumer immediately and without charge and that the creditor explains the general logic involved in the automated decision to the consumer.
2011/10/06
Committee: ECON
Amendment 590 #
Proposal for a directive
Article 14 – paragraph 2 – point e
(e) Without prejudice to the general right of access contained in Article 12 of the Directive 95/46/EC, where the application is rejected on the basis of an automated decision or a decision based on methods such as automated credit scoring, the creditor informs the consumer immediately and without charge and that the creditor explains the logic involved in the automated decision to the consumer and gives adequate information about the reason for such decline.
2011/10/06
Committee: ECON
Amendment 598 #
Proposal for a directive
Article 14 – paragraph 4
4. Further to assessing a consumer's creditworthiness, Member States shall ensure that creditors and credit intermediaries obtain the necessary information regarding the consumer's personal and financial situation, his preferences and objectives and consider a sufficiently large number of credit agreements from their product range in order to identify products that are not unsuitable for the consumer given his needs, financial situation and personal circumstances. Such considerations shall be based on information that is up to date at that moment in time and on reasonable assumptions as to the consumer's situation over the term of the proposed credit agreement.deleted
2011/10/06
Committee: ECON
Amendment 607 #
Proposal for a directive
Article 14 – paragraph 5
5. Powers are delegated to the Commission in accordance with Article 26 and subject to the conditions of Articles 27 and 28, to specify and amend the criteria to be considered in the conduct of a creditworthiness assessment as laid down in paragraph 1 of this Article and in ensuring that credit products are not unsuitable for the consumer as laid down in paragraph 4 of this Article.
2011/10/06
Committee: ECON
Amendment 616 #
Proposal for a directive
Article 15 – paragraph 2 – subparagraph 1
As regards the information to be provided by the consumer in order for the creditor to be able to conduct a thorough assessment of the consumer's creditworthiness and make a decision on whether or not to grant the credit, Member States shall ensure that creditors, at the pre-contractual phase, clearly specify the information, including independently verifiable evidence where necessary, that the consumer needs to provide. Member States shall also ensure that creditors state the exact timing by which consumers are required to provide such information.
2011/10/06
Committee: ECON
Amendment 626 #
Proposal for a directive
Article 16 – paragraph 2
2. Powers are delegated to the Commission in accordance with Article 26 and subject to the conditions of Articles 27 and 28, to define uniform credit registration criteria and data processing conditions to be applied to the databases referred to in paragraph 1 of this Article. In particular, such delegated acts shall define the registration thresholds to be applied to such databases and shall provide for agreed definitions for key terms used by such databases.
2011/10/06
Committee: ECON
Amendment 633 #
Proposal for a directive
Article 17 – paragraph 1
1. For the purposes of this Directive, ‘advice’ constitutes a separate service from the granting of a credit. Such a service can only be marketed as advice when the remuneration of the individual providing the service is transparent to the consumer.
2011/10/06
Committee: ECON
Amendment 640 #
Proposal for a directive
Article 17 – paragraph 2 – introductory part
2. Member States shall ensure that the creditor or credit intermediary informs the consumer, in the context of a given transaction, whether or not advice is being or will be provided, and if applicable, indicates the fee payable by the consumer for the provision of advice. This may be done through additional pre-contractual information. Where advice is provided to consumers, in addition to the requirements set out in Articles 5 and 6, Member States shall ensure that creditors and credit intermediaries:
2011/10/06
Committee: ECON
Amendment 648 #
Proposal for a directive
Article 17 – paragraph 2 – point a
(a) consider a sufficiently large number of credit agreements available on the market, in the case of provision of advice by an untied credit intermediary, or from within the creditor's organisation, in the case of provision of advice by the creditor or a tied credit intermediary, so as to enable the recommendation of the most suitable credit agreements for the consumer's needs, financial situation and personal circumstances;
2011/10/06
Committee: ECON
Amendment 661 #
Proposal for a directive
Article 18 – paragraph 1
1. Member States shall ensure that the consumer has a statutory or contractual right to discharge his obligations under a credit agreement prior to the expiry of that agreement. In such cases, he shall be entitled to a reduction in the total cost of the credit, such a reduction consisting of the interest and the costs for the remaining duration of the contract, without prejudice to the provisions contained in paragraph 2.
2011/10/06
Committee: ECON
Amendment 671 #
Proposal for a directive
Article 18 – paragraph 2 – subparagraph 1
Member States mayshall provide that the exercise of the right referred to in paragraph 1 is subject to certain conditions. Such conditions may include time limitations on the exercise of the right, different treatment depending on the type of the borrowing rate, or restrictions with regard to the circumstances under which the right may be exercised. Member States may also provide that the creditor should be entitled to fair and objectively justified compensation for potential costs directly linked to early repayment of the credit. In any event, if the early repayment falls within a period for which the borrowing rate is fixed, exercise of the right may be made subject to the existence of a special interest on the part of the consumer.
2011/10/06
Committee: ECON
Amendment 686 #
Proposal for a directive
Article 18 – paragraph 2 – subparagraph 2 a (new)
Member States shall ensure that the creditor is entitled to fair and objectively justified compensation for potential costs and losses directly linked to early repayment of the credit.
2011/10/06
Committee: ECON
Amendment 688 #
Proposal for a directive
Article 18 a (new)
Article 18a Portability Member States may investigate the possibility to establish national legal frameworks for lenders allowing borrowers on a contractual basis to keep a credit agreement when moving house provided that the value of the new property is sufficient to serve as the collateral required by the credit agreement.
2011/10/06
Committee: ECON
Amendment 693 #
Proposal for a directive
Article 18 b (new)
Article 18a Payment flexibility In cases where creditors and consumers agree to make payments which exceed the amount required by the amortisation structure of the loan contained in the credit agreement, the lender is entitled to fair and objectively justified compensation which needs to be concluded in the mortgage credit contract.
2011/10/06
Committee: ECON
Amendment 698 #
Proposal for a directive
Article 18 c (new)
Article 18c Reverse agreements Member States may assess, in order to cover risks of aging or retirement, the market potential for the development of reverse mortgages or other credit products under which a sum of money is advanced or paid periodically to the consumer to allow access to equity in the residential immovable property and which will eventually be repaid from the sale of the residential immovable property.
2011/10/06
Committee: ECON
Amendment 711 #
Proposal for a directive
Article 18 d (new)
Article 18d Valuation of residential immovable property Member States may ensure that valuers carrying out valuations of residential immovable property which are used to value the collateral in credit agreements are carried out according to the international valuation standards regarding independence and minimum professional standards for valuers.
2011/10/06
Committee: ECON
Amendment 712 #
Proposal for a directive
Article 18 e (new)
Article 18e Property indices Member States may promote the use of indices of residential immovable property prices at national and regional level in order to provide an improved basis for the monitoring of trends in valuation of residential immovable property.
2011/10/06
Committee: ECON
Amendment 714 #
Proposal for a directive
Article -19 a (new)
Article -19a General prudential requirements The ESRB shall assess continually the risk profile of residential immovable property in order to detect speculative bubbles, market instabilities and developments with implications for systemic risk taking into account the specific national features of these markets.
2011/10/06
Committee: ECON
Amendment 715 #
Proposal for a directive
Article -19 b (new)
Article -19b Prudential requirements 1. Member States shall ensure that the competent authorities pay particular attention to the following risk features: (a) the loan is granted in a foreign currency; (b) credit agreements which allow for significant variation in interest payments during the term of the agreement; 2. Member States shall ensure that local competent authorities have powers to specify additional features.
2011/10/06
Committee: ECON
Amendment 734 #
Proposal for a directive
Article 24 – paragraph 1 – subparagraph 2
Member States shall provide for penalties in particular cases where consumers knowingly provide incomplete or incorrect information in order to obtain a positive creditworthiness assessment where the complete and correct information would have resulted in a negative creditworthiness assessment, and are subsequently unable to fulfil the conditions of the agreement, and shall take all measures necessary to ensure that they are implemented.
2011/10/06
Committee: ECON
Amendment 737 #
Proposal for a directive
Article 24 – paragraph 2
2. Member States shall ensure that the competent authority discloses to the public any measure or sanction that will be imposed for infringement of the provisions adopted in the implementation of this Directive, unless such disclosure would seriously jeopardise the financial markets or cause disproportionate damage to the parties involvrights of the defendant are taken into account whenever a penalty or any other kind of measure is imposed.
2011/10/06
Committee: ECON
Amendment 739 #
Proposal for a directive
Article 26 – paragraph 1
1. The powers to adopt delegated acts referred to in Articles 6(4), 8(4), 9(3), 10(3), 14(5) and 16(2) shall be conferred on the Commission for an indeterminate period of time following the entry into force of this Directive.
2011/10/06
Committee: ECON
Amendment 744 #
Proposal for a directive
Article 26 – paragraph 2
2. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.
2011/10/06
Committee: ECON
Amendment 746 #
Proposal for a directive
Article 26 – paragraph 3
3. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in Articles 27 and 28.
2011/10/06
Committee: ECON
Amendment 751 #
Proposal for a directive
Article 27 – paragraph 1
1. The delegation of powers referred to in Articles 6(4), 8(4), 9(3), 10(3), 14(5) and 16(2) may be revoked at any time by the European Parliament or by the Council.deleted
2011/10/06
Committee: ECON
Amendment 755 #
Proposal for a directive
Article 27 – paragraph 2
2. The institution which has commenced an internal procedure for deciding whether to revoke the delegation of powers shall inform the other legislator and the Commission at the latest one month before the final decision is taken, stating the delegated powers which could be subject to revocation and the reasons for any revocation.deleted
2011/10/06
Committee: ECON
Amendment 756 #
Proposal for a directive
Article 27 – paragraph 3
3. The decision of revocation shall terminate the delegation of the powers specified in that decision. It shall take effect immediately or at a later date specified therein. It shall not affect the validity of the delegated acts already in force. It shall be published in the Official Journal of the European Union.deleted
2011/10/06
Committee: ECON
Amendment 758 #
Proposal for a directive
Article 28 – paragraph 1
1. The European Parliament and the Council may object to a delegated act within a period of two months from the date of notification. At the initiative of the European Parliament or the Council that period shall be extended by one month.deleted
2011/10/06
Committee: ECON
Amendment 759 #
Proposal for a directive
Article 28 – paragraph 2
2. Where, on expiry of the period referred to in paragraph 1, neither the European Parliament nor the Council has objected to the delegated act, it shall be published in the Official Journal of the European Union and shall enter into force on the date stated therein. The delegated act may be published in the Official Journal of the European Union and enter into force before the expiry of that period where the European Parliament and the Council have both informed the Commission of their intention not to raise objections.deleted
2011/10/06
Committee: ECON
Amendment 760 #
Proposal for a directive
Article 28 – paragraph 3
3. Where either the European Parliament or the Council objects to an adopted delegated act within the period referred to in paragraph 1, it shall not enter into force. The institution which objects shall state the reasons for objecting to the delegated act.
2011/10/06
Committee: ECON
Amendment 763 #
Proposal for a directive
Article 29 – paragraph 1 a (new)
1 a. Insofar as this Directive contains harmonised provisions, Member States may not maintain or introduce in their national law provisions which diverge from or add to the provisions laid down in this Directive.
2011/10/06
Committee: ECON
Amendment 764 #
Proposal for a directive
Article 29 – paragraph 2
2. Member States shall further ensure that the provisions they adopt in implementation of this Directive cannot be circumvented as a result of the way in which agreements are formulated, in particular by integrating credit agreements falling within the scope of this Directive into credit agreements the character or purpose of which would make it possible to avoid its application.deleted
2011/10/06
Committee: ECON
Amendment 765 #
Proposal for a directive
Article 29 – paragraph 3
3. Member States shall take the necessary measures to ensure that consumers do not lose the protection granted by this Directive by virtue of the choice of the law of a third country as the law applicable to the credit agreement.deleted
2011/10/06
Committee: ECON
Amendment 766 #
Proposal for a directive
Article 30 a (new)
Article 30 a Transitional Measures The Directive shall not apply to credit agreements existing on the date when the national implementing measures enter into force.
2011/10/06
Committee: ECON
Amendment 768 #
Proposal for a directive
Annex 1 – part I – paragraph 2 – point d
d) The result of the calculation shall be expressed with an accuracy of at least one decimal place. If the figure at the following decimal place is greater than or equal to 5, the figure at that particulare preceding decimal place shall be increased by one.
2011/10/06
Committee: ECON
Amendment 771 #
Proposal for a directive
Article 31 – paragraph 2 – point g
(g) an assessment of the need to extend its scope to small companies.deleted
2011/10/06
Committee: ECON