Activities of Eugen JURZYCA related to 2021/0171(COD)
Shadow reports (1)
REPORT on the proposal for a directive of the European Parliament and of the Council on consumer credits
Shadow opinions (1)
OPINION on the proposal for a directive of the European Parliament and of the Council on consumer credits
Amendments (184)
Amendment 67 #
Proposal for a directive
Recital 4
Recital 4
(4) Digitalisation has contributed to market developments that were not foreseen at the time when Directive 2008/48/EC was adopted. In fact, the rapid technological developments registered since the 2008 Directive have brought significant changes to the consumer credit market, both on the supply side and on the demand side, such as the emergence of new products and the evolution of consumer behaviour and preferences. Digitalisation has also brought wide range of reliable authentication options, including digital signature, voice authentication, face ID and others. Those options enable the digital approval and signing of credit contracts.
Amendment 68 #
Proposal for a directive
Recital 6
Recital 6
(6) The de facto and de jure situation resulting from those national differences in some cases leads to distortions of competition among creditors in the Union and creates obstacles to the internal market. The situation restricts consumers' ability to benefit from a gradually increasing offer of cross-border credit, which is expected to further grow as a result of digitalisation. Those distortions and restrictions may in turn have consequences in terms of reduced demand for goods and services. Only restrictions hampering the cross- border credit offers should be harmonised and the potential disadvantage due to less flexibility and customisations should be always considered. The situation also leads to an inadequate and non-consistent level of protection for consumers across the Union.
Amendment 69 #
Proposal for a directive
Recital 9
Recital 9
(9) In accordance with Article 26 of the Treaty on the Functioning of the European Union (TFEU), the internal market comprises an area in which the free movement of goods and services and the freedom of establishment are ensured. The development of a more transparent and efficient legal framework for consumer credit should increase consumer trust and welfare and facilitate the development of cross-border activities.
Amendment 70 #
Proposal for a directive
Recital 10
Recital 10
(10) In order to improve the functioning of the internal market for consumer credits, it is necessary to provide for a harmonised Union framework in a number of core areas. In view of the developing market in consumer credit, in particular in the online environment, and the increasing mobility of European citizens, forward-looking risk- oriented and proportionate Union legislation which is able to adapt to future forms of credit and which allows Member States the appropriate degree of flexibility in their implementation will help to create a level playing field for businesses.
Amendment 71 #
Proposal for a directive
Recital 12
Recital 12
(12) It is important that consumers benefit from a high level of consumer protection, convenient and cost-efficient solutions. Thus, it should be possible for the free movement of credit offers to take place under optimum conditions for both those who offer credit and those who require it, with due regard to specific situations in the Member States.
Amendment 72 #
Proposal for a directive
Recital 13
Recital 13
(13) Full hHarmonisation is necessary in order to ensure that all consumers in the Union enjoy a high and equivalent level of protection of their interests and to create a well-functioning internal market. Member States should therefore not be allowed to maintain or introduce national provisions diverging from other than those laid down in this Directive, unless otherwise provided in this Directive. However, such restriction should only apply where there are provisions harmonised in this Directive. Where no such harmonised provisions exist, Member States should remain free to maintain or introduce national legislation. Accordingly, Member States should have the possibility to maintain or introduce national provisions on joint and several liability of the seller or the service provider and the creditor. Member States should also have the possibility to maintain or introduce of national provisions on the cancellation of a contract for the sale of goods or supply of services where the consumer exercises his right of withdrawal from the credit agreement or from the agreement for the provision of crowdfunding credit services. In this respect, Member States, in the case of open-end credit agreements, should be allowed to fix a minimum period needing to elapse between the time when the creditor asks for reimbursement and the day on which the credit has to be reimbursed.
Amendment 75 #
Proposal for a directive
Recital 15
Recital 15
(15) A number of Member States have applied Directive 2008/48/EC to areas not covered by its scope to enhance the level of consumer protection. In fact, several of the credit agreements not falling within the scope of that Directive can be detrimental for consumers, including short-term high cost loans whose amount is typically lower than the minimum threshold of EUR 200 set out in Directive 2008/48/EC. In this context, and with the aim to ensure a high level of consumer protection and to facilitate the cross-border consumer credit market, the scope of this Directive should cover some agreements that were excluded from the scope of Directive 2008/48/EC, such as consumer credit agreements below the amount of EUR 200. Likewise, other potentially detrimental products, because of the high costs they entail or high fees in case of missed payments, should be covered by this Directive, to ensure increased transparency and better consumer protection, resulting in higher consumer confidence. To this extent, lMember States should have flexibility to derogate from such consumer credit agreements below the amount of EUR 200 if the overall net impact of the measure is negative due to national specificities. Leasing agreements, credit agreements in the form of an overdraft facility and where the credit has to be repaid within one month, and credit agreements where the credit is granted free of interest and without any other charges, including Buy Now Pay Later schemes, i.e. new digital financial tools that let consumers make purchases and pay them off over time, and credit agreements under the terms of which the credit has to be repaid within three months and only insignificant charges are payable should not be excluded from the scope of application of this Directive. Moreover, all credit agreement up until EUR 100 000 should be included in the scope of application of this Directive. The upper threshold of credit agreements under this Directive should be increased to take into account indexation to adjust for the effects of inflation since 2008 and in coming years.
Amendment 76 #
Proposal for a directive
Recital 16
Recital 16
(16) Crowdfunding is increasingly a form of finance available to consumers, typically for small expenses or investments. Regulation (EU) 2020/1503 of the European Parliament and of the Council26 excludes from its scope crowdfunding services, including those facilitating the granting of credit, that are provided to consumers as defined in Directive 2008/48/EC. In this context, this Directive aims to complement Regulation (EU) 2020/1503 by remedying this exclusion by bringing legal clarity on the applicable legal regime for crowdfunding services when a consumer seeks to take out a credit through a provider of crowdfunding credit services other than those under the scope of Regulation (EU) 2020/1503. __________________ 26 Regulation (EU) 2020/1503 of the European Parliament and of the Council of 7 October 2020 on European crowdfunding service providers for business, and amending Regulation (EU) 2017/1129 and Directive (EU) 2019/1937 (OJ L 347, 20.10.2020, p. 1).
Amendment 77 #
Proposal for a directive
Recital 18
Recital 18
(18) Some provisions of this Directive should moreover apply to providers of crowdfunding credit services, acting in such capacity and not as creditors or credit intermediaries, where they facilitate the granting of credit between, on the one side, persons granting consumer credit outside of the course of their trade, business or profession, and on the other side, consumers. In this context, the provider of crowdfunding credit services should comply with certain rules and obligations of this Directive including the obligation to carry out a creditworthiness assessment and the rules on pre-contractual information. Persons granting credit not in the course of their formal trade, business or profession, to consumers through a crowdfunding credit platform should not be subject to obligations for creditors under this Directive.
Amendment 78 #
Proposal for a directive
Recital 24
Recital 24
(24) Information to consumers, such as pre-contractual information or general information, should be provided free of charge. Upon agreement between the creditor or the provider of crowdfunding credit services and the consumer and at the consumers’ request, any additional information or transmission of information can be charged.
Amendment 81 #
Proposal for a directive
Recital 29
Recital 29
(29) Specific provisions should be laid down on advertising of credit agreements or crowdfunding credit services and certain items of standard information to be provided to consumers in order to enable them, in particular, to compare different offers. Such information should be given in a clear, concise and prominent way by means of a representative example. The standard information should be shown upfront and saliently, in a clear way and in an engaging format. It should be clearly legible and adapted to take into account the technical constraints of certain media such as mobile telephone screens. Temporary promotional conditions, such as a teaser rate with lower interest rate for the initial months of the credit agreement or crowdfunding credit services, should be clearly identified as such. Consumers should see all essential information at a glance, even when they watch it on the screen of a mobile telephone. The creditor and, where applicable, credit intermediary and provider of crowdfunding credit services’ telephone number and email address should also be communicated to the consumer to enable him or her to contact the creditor, the credit intermediary or provider of crowdfunding credit services quickly and efficiently. A ceiling should be provided where it is not possible to indicate the total amount of credit as the total sums made available, in particular where a credit agreement gives the consumer freedom of drawdown with a limitation with regard to the amount. The ceiling should indicate the upper limit of credit which can be made available to the consumer. In specific and justified cases, in order to improve consumer understanding of information disclosed in advertising of credit agreements or crowdfunding credit services where the medium used does not allow to visually display it, such as in radio advertising, the amount of information disclosed could be reduced. In addition, Member States should remain free to regulate information requirements in their national law regarding advertising of credit agreements or crowdfunding credit services which does not contain information on the cost of the credit.
Amendment 83 #
Proposal for a directive
Recital 30
Recital 30
(30) In order to be able to make their decisions in full knowledge of the facts, consumers should receive adequate information, for careful consideration at their own leisure and convenience, at least one day prior to the conclusion of the credit agreement or of the agreement for the provision of crowdfunding credit services, including information on the conditions and cost of the credit and on their obligations, as well as adequate explanations thereof. These rules should be without prejudice to Council Directive 93/13/EEC29. __________________ 29 Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts (OJ L 95, 21.4.1993, p. 29).
Amendment 85 #
Proposal for a directive
Recital 31
Recital 31
(31) Pre-contractual information should be provided through the Standard European Consumer Credit Information form. To help consumers understand and compare offers, a Standard European Consumer Credit Overview form summarising the key element of the credit should be provided in addition to the Standard European Consumer Credit Information form, through which consumers should see all essential information at a glance, even on the screen of a mobile telephone. Information should be clear, clearly legible and adapted to the technical constraints of certain media such as mobile telephone screens. It should be displayed in an adequate and suitable way on the different channels, to ensure that every consumer can access information on an equal basis and in line with Directive (EU) 2019/882 of the European Parliament and of the Council30. __________________ 30 Directive (EU) 2019/882 of the European Parliament and of the Council of 17 April 2019 on the accessibility requirements for products and services (OJ L 151, 7.6.2019, p. 70).
Amendment 86 #
Proposal for a directive
Recital 32
Recital 32
(32) To ensure the fullest possible transparency and comparability of offers, pre-contractual information should, in particular, include the annual percentage rate of charge applicable to the credit, determined in the same way throughout the Union. As the annual percentage rate of charge can at this stage be indicated only through an example, such 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 or crowdfunding credit services under consideration and, if applicable, to the goods purchased. When determining the representative example, the frequency of certain types of credit agreement or crowdfunding credit services in a specific market should also be taken into account. As regards the borrowing rate, the frequency of instalments and the capitalisation of interest, creditors should use their usual method of calculation for the consumer credit concerned. In case pre-contractual information is provided less than one day before the consumer is bound by any credit agreement or agreement for the provision of crowdfunding credit services, the creditor and, where applicable, the credit intermediary or providers of crowdfunding credit services should remind consumers, one day after conclusion of the contract, of the possibility to withdraw from the credit agreement.
Amendment 89 #
Proposal for a directive
Recital 40
Recital 40
(40) As highlighted in the Commission Proposal for a Regulation laying down harmonised rules on artificial intelligence (Artificial Intelligence Act)31 , artificial intelligence (AI) systems can be easily deployed in multiple sectors of the economy and society, including cross border, and can circulate throughout the Union. In this context, creditors, credit intermediaries and providers of crowdfunding credit services should be allowed to personalise the price of their offers for specific consumers or specific categories of consumer based on automated decision-making and profiling of consumer behaviour allowing them to assess the consumer’s purchasing power. Consumers should therefore be clearly informed when the price presented to them is personalised on the basis of automated processing in line with the Regulation (EU) 2016/679, so that they can take into account the potential risks in their purchasing decision. __________________ 31 COM/(2021/)0206 final.
Amendment 91 #
Proposal for a directive
Recital 43
Recital 43
(43) Providing advice in the form of a personalised recommendation (‘advisory services’) is an activity which may be combined with other aspects of granting or intermediating credit. Therefore, in order to be in a position to understand the nature of the services provided to them, consumers should be made aware of what constitutes such advisory services and of whether advisory services are being, or can be, provided or not. Given the importance which consumers attach to the use of the terms ‘advice’ and ‘advisors’, Member States should be allowed to prohibit the use of the those terms, or similar terms, when advisory services are being provided to consumers by creditors, credit intermediaries or providers of crowdfunding credit services. It is appropriate to ensure that Member States impose safeguards where advice is described as independent to ensure that the range of products considered and remuneration arrangements are commensurate with consumers’ expectations of such advice. When providing advisory services, the creditor, credit intermediary or provider of crowdfunding credit services should provide an indication of whether the recommendation will be based on only their own product range or on a wide range of products from across the market, so that the consumer can understand the basis on which the recommendation is made. Moreover, the creditor, credit intermediary or provider of crowdfunding credit services should provide an indication of the fee payable by the consumer for the advisory services or, where the amount cannot be ascertained at the time of disclosure, the method used for its calculation.
Amendment 95 #
Proposal for a directive
Recital 45
Recital 45
(45) Member States should take appropriate measures to promote responsible practices during all phases of the credit relationship, taking into account the specific features of their credit market. Those measures may include, for instance, the provision of information to, and the education of, consumers, including warnings about the risks attaching to default on payment and to over- indebtedness. In the expanding credit market, in particular, it is important that creditors should not engage in irresponsible lending or give out credit without prior assessment of creditworthiness. Member States should carry out the necessary supervision to avoid such behaviour of creditors and should determine the necessary means to sanction such behaviour. Without prejudice to the provisions on credit risk of Directive 2013/36/EU of the European Parliament and of the Council32, creditors or providers of crowdfunding credit services should bear the responsibility of checking individually and proportionally the creditworthiness of the consumer. To that end, creditors or providers of crowdfunding credit services should be allowed to use information provided by the consumer not only during the preparation of the credit agreement or of the agreement for the provision of crowdfunding credit services in question, but also during a long standing commercial relationship. Consumers should also act with prudence and respect their contractual obligations. __________________ 32 Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338).
Amendment 98 #
Proposal for a directive
Recital 46
Recital 46
(46) It is essential that the consumer’s ability and propensity to repay the credit is assessed and verified before a credit agreement or an agreement for the provision of crowdfunding credit services is concluded. That assessment of creditworthiness should be done in the interest of the consumer, to prevent irresponsible lending practices and over- indebtedness, and should take into consideration all necessary and relevant factors that could influence a consumer’s ability to repay the credit. The assessment should be proportionate considering the risk-based approach, data minimalisation principle and cost-effectiveness. Member States should be able to issue additional guidance on additional criteria and methods to assess a consumer’s creditworthiness, for example by setting limits on loan-to-value or loan- to-income ratios.
Amendment 107 #
Proposal for a directive
Recital 47
Recital 47
(47) The assessment of creditworthiness should be based on information on the financial and economic situation, including income and expenses, of the consumer. The European Banking Authority Guidelines on loan origination and monitoring (EBA/GL/2020/06) provide guidelines on what categories of data may be used for the processing of personal data for creditworthiness purposes, which include evidence of income or other sources of repayment, information on financial assets and liabilities, or information on other financial commitments. Personal data, such as personal data found on social media platforms or health data, including cancer data, should not be used when conducting a creditworthiness assessment. Consumers should provide information about their financial and economic situation in order to facilitate the creditworthiness assessment. In principle, credit should only be made available to the consumer where the result of the creditworthiness assessment indicates that the obligations resulting from the credit agreement or the agreement for the provision of crowdfunding credit services are likely to be met in the manner required under that agreement. However, should such assessment be negative, the creditor or the provider of crowdfunding credit services can exceptionally make credit available in specific and justified circumstances such as when they have a long-standing relationship with the consumer, or in case of loans to fund exceptional healthcare expenses, students loans or loans for consumers with disabilities. In such case, when deciding on whether or not to make the credit available to the consumer, the creditor or the provider of crowdfunding credit services should take into account the amount and the purpose of the credit, and the likelihood that the obligations resulting from the agreement will be met.
Amendment 109 #
Proposal for a directive
Recital 48
Recital 48
(48) The Proposal for a Regulation laying down harmonised rules on artificial intelligence (Artificial Intelligence Act), establishes that AI systems used to evaluate the credit score or creditworthiness of natural persons should be classified as high-risk AI systems, since they determine those persons’ access to financial resources or essential services such as housing, electricity, and telecommunication services. In view of those high stakes, whenever the creditworthiness assessment involves automated processing, the consumer should have a right to obtain human intervention on the part of the creditor or providers of crowdfunding credit services. The consumer should also have the right to obtain a meaningful explanation of the assessment made and of the functioning of the automated processing used, including among others the main variables, the logic and risks involved, as well as a right to express his or her point of view and to contest the assessment of the creditworthiness and the decision.
Amendment 113 #
Proposal for a directive
Recital 4
Recital 4
(4) Digitalisation has contributed to market developments that were not foreseen at the time when Directive 2008/48/EC was adopted. In fact, the rapid technological developments registered since the 2008 Directive have brought significant changes to the consumer credit market, both on the supply side and on the demand side, such as the emergence of new products and the evolution of consumer behaviour and preferences. Digitalisation has also brought wide range of reliable authentication options, including digital signature, voice authentication, face ID and others. Those options enable the digital approval and signing of credit contracts.
Amendment 114 #
Proposal for a directive
Recital 6
Recital 6
(6) The de facto and de jure situation resulting from those national differences in some cases leads to distortions of competition among creditors in the Union and creates obstacles to the internal market. The situation restricts consumers' ability to benefit from a gradually increasing offer of cross-border credit, which is expected to further grow as a result of digitalisation. Those distortions and restrictions may in turn have consequences in terms of reduced demand for goods and services. Only restrictions hampering the cross- border credit offers should be harmonised and the potential disadvantage due to less flexibility and customisations should be always considered. The situation also leads to an inadequate and non-consistent level of protection for consumers across the Union.
Amendment 116 #
Proposal for a directive
Recital 9
Recital 9
(9) In accordance with Article 26 of the Treaty on the Functioning of the European Union (TFEU), the internal market comprises an area in which the free movement of goods and services and the freedom of establishment are ensured. The development of a more transparent and efficient legal framework for consumer credit should increase consumer trust and welfare and facilitate the development of cross-border activities.
Amendment 116 #
Proposal for a directive
Recital 57
Recital 57
(57) Where a consumer withdraws from a credit agreement or an agreement for the provision of crowdfunding credit services in connection with which the consumer has received goods, in particular from a purchase in instalments or from a hiring or leasing agreement providing for an obligation to purchase, this Directive should be without prejudice to any regulation by Member States of questions concerning the return of the goods or any related questions.
Amendment 117 #
Proposal for a directive
Recital 10
Recital 10
(10) In order to improve the functioning of the internal market for consumer credits, it is necessary to provide for a harmonised Union framework in a number of core areas. In view of the developing market in consumer credit, in particular in the online environment, and the increasing mobility of European citizens, forward-looking risk- oriented and proportionate Union legislation which is able to adapt to future forms of credit and which allows Member States the appropriate degree of flexibility in their implementation will help to create a level playing field for businesses.
Amendment 118 #
Proposal for a directive
Recital 12
Recital 12
(12) It is important that consumers benefit from a high level of consumer protection, convenient and cost-efficient solutions. Thus, it should be possible for the free movement of credit offers to take place under optimum conditions for both those who offer credit and those who require it, with due regard to specific situations in the Member States.
Amendment 119 #
Proposal for a directive
Recital 13
Recital 13
(13) Full hHarmonisation is necessary in order to ensure that all consumers in the Union enjoy a high and equivalent level of protection of their interests and to create a well-functioning internal market. Member States should therefore not be allowed to maintain or introduce national provisions diverging from other than those laid down in this Directive, unless otherwise provided in this Directive. However, such restriction should only apply where there are provisions harmonised in this Directive. Where no such harmonised provisions exist, Member States should remain free to maintain or introduce national legislation. Accordingly, Member States should have the possibility to maintain or introduce national provisions on joint and several liability of the seller or the service provider and the creditor. Member States should also have the possibility to maintain or introduce of national provisions on the cancellation of a contract for the sale of goods or supply of services where the consumer exercises his right of withdrawal from the credit agreement or from the agreement for the provision of crowdfunding credit services. In this respect, Member States, in the case of open-end credit agreements, should be allowed to fix a minimum period needing to elapse between the time when the creditor asks for reimbursement and the day on which the credit has to be reimbursed.
Amendment 120 #
Proposal for a directive
Recital 65
Recital 65
(65) The fixing of caps on interest rates, on annual percentage rates of charge and or the total cost of the credit to the consumer is a common practice in a number of Member States. Such capping has proved beneficial for consumers. In that context, Member States should be able to maintain their current legal regime. However, in an effort to increase consumer protection without imposing unnecessary limits on Member States, caps on interest rates, on annual percentage rates of charge and or on the total cost of the credit to the consumer should be introduced throughout the Union.
Amendment 122 #
Proposal for a directive
Recital 15
Recital 15
(15) A number of Member States have applied Directive 2008/48/EC to areas not covered by its scope to enhance the level of consumer protection. In fact, several of the credit agreements not falling within the scope of that Directive can be detrimental for consumers, including short-term high cost loans whose amount is typically lower than the minimum threshold of EUR 200 set out in Directive 2008/48/EC. In this context, and with the aim to ensure a high level of consumer protection and to facilitate the cross-border consumer credit market, the scope of this Directive should cover some agreements that were excluded from the scope of Directive 2008/48/EC, such as consumer credit agreements below the amount of EUR 200. Likewise, other potentially detrimental products, because of the high costs they entail or high fees in case of missed payments, should be covered by this Directive, to ensure increased transparency and better consumer protection, resulting in higher consumer confidence. To this extent, lIn order to strike the right balance and to create proportionate regime, Member States should have flexibility to derogate from certain products, such as consumer credit agreements below the amount of EUR 200 if the overall net impact of the measure is negative due to national specificities. Leasing agreements, credit agreements in the form of an overdraft facility and where the credit has to be repaid within one month, and credit agreements where the credit is granted free of interest and without any other charges, including Buy Now Pay Later schemes, i.e. new digital financial tools that let consumers make purchases and pay them off over time, and credit agreements under the terms of which the credit has to be repaid within three months and only insignificant charges are payable should not be excluded from the scope of application of this Directive. Moreover, all credit agreement up until EUR 100 000 should be included in the scope of application of this Directive. The upper threshold of credit agreements under this Directive should be increased to take into account indexation to adjust for the effects of inflation since 2008 and in coming years.
Amendment 125 #
Proposal for a directive
Recital 87
Recital 87
(87) Member States should apply the measures necessary to comply with this Directive from [OP: please insert date: sixtwenty-four months from the transposition deadline]. However, taking into account the difficult economic circumstances created by the COVID-19 pandemic and the specific challenges faced by micro, small and medium undertakings, such undertakings should be provided with sufficient time to prepare for the application of this Directive. Hence, as regards micro, small and medium undertakings, Member States should apply the measures necessary to comply with this Directive from [OP: please insert date: 1830 months from the transposition deadline].
Amendment 127 #
Proposal for a directive
Recital 16
Recital 16
(16) Crowdfunding is increasingly a form of finance available to consumers, typically for small expenses or investments. Regulation (EU) 2020/1503 of the European Parliament and of the Council26 excludes from its scope crowdfunding services, including those facilitating the granting of credit, that are provided to consumers as defined in Directive 2008/48/EC. In this context, this Directive aims to complement Regulation (EU) 2020/1503 by remedying this exclusion by bringing legal clarity on the applicable legal regime for crowdfunding services when a consumer seeks to take out a credit through a provider of crowdfunding credit services other than those under the scope of Regulation (EU) 2020/1503. _________________ 26 Regulation (EU) 2020/1503 of the European Parliament and of the Council of 7 October 2020 on European crowdfunding service providers for business, and amending Regulation (EU) 2017/1129 and Directive (EU) 2019/1937 (OJ L 347, 20.10.2020, p. 1).
Amendment 129 #
Proposal for a directive
Recital 20
Recital 20
(20) Agreements for the provision on a continuing basis of services or for the supply of goods of the same kind, where the consumer pays for them for the duration of their provision by means of instalments, may differ considerably, in terms of the interests of the contractual parties involved, and the modalities and performance of the transactions, from credit agreements covered by this Directive. Therefore, such agreements should not be regarded as credit agreements for the purposes of this Directive. Such agreement includes, for example, an insurance contract, where the insurance is paid for in monthly instalments, electronic communication bundles or energy contracts.
Amendment 130 #
Proposal for a directive
Recital 24
Recital 24
(24) Information to consumers, such as pre-contractual information or general information, should be provided free of charge. Upon agreement between the creditor or the provider of crowdfunding credit services and the consumer and at the consumers’ request, any additional information or transmission of information can be charged.
Amendment 132 #
Proposal for a directive
Article 2 – paragraph 2 – point j a (new)
Article 2 – paragraph 2 – point j a (new)
(ja) hiring or leasing agreements where an obligation to purchase the object of the agreement is not laid down either by the agreement itself or by any separate agreement; such an obligation shall be deemed to exist if it is so decided unilaterally by the creditor;
Amendment 137 #
Proposal for a directive
Article 2 – paragraph 2 – point j b (new)
Article 2 – paragraph 2 – point j b (new)
(jb) deferred debit cards and deferred payments offered free of interest and charges to be paid less than 30 days from delivery of the good or service;
Amendment 142 #
Proposal for a directive
Article 2 – paragraph 2 – point j c (new)
Article 2 – paragraph 2 – point j c (new)
(jc) credit agreements in the form of an overdraft facilities where the credit has to be repaid within one month;
Amendment 143 #
Proposal for a directive
Article 2 – paragraph 2 – point j d (new)
Article 2 – paragraph 2 – point j d (new)
(jd) credit agreements where the credit is granted free of interest and without any other charges and credit agreements under the terms of which the credit has to be repaid within three months and only insignificant charges are payable;
Amendment 144 #
Proposal for a directive
Recital 29
Recital 29
(29) Specific provisions should be laid down on advertising of credit agreements or crowdfunding credit services and certain items of standard information to be provided to consumers in order to enable them, in particular, to compare different offers. Such information should be given in a clear, concise and prominent way by means of a representative example. The standard information should be shown upfront and saliently, in a clear way and in an engaging format. It should be clearly legible and adapted to take into account the technical constraints of certain media such as mobile telephone screens. Temporary promotional conditions, such as a teaser rate with lower interest rate for the initial months of the credit agreement or crowdfunding credit services, should be clearly identified as such. Consumers should see all essential information at a glance, even when they watch it on the screen of a mobile telephone. The creditor and, where applicable, credit intermediary and provider of crowdfunding credit services’ telephone number and email address should also be communicated to the consumer to enable him or her to contact the creditor, the credit intermediary or provider of crowdfunding credit services quickly and efficiently. A ceiling should be provided where it is not possible to indicate the total amount of credit as the total sums made available, in particular where a credit agreement gives the consumer freedom of drawdown with a limitation with regard to the amount. The ceiling should indicate the upper limit of credit which can be made available to the consumer. In specific and justified cases, in order to improve consumer understanding of information disclosed in advertising of credit agreements or crowdfunding credit services where the medium used does not allow to visually display it, such as in radio advertising, the amount of information disclosed could be reduced. In addition, Member States should remain free to regulate information requirements in their national law regarding advertising of credit agreements or crowdfunding credit services which does not contain information on the cost of the credit.
Amendment 144 #
Proposal for a directive
Article 2 – paragraph 2 – point j e (new)
Article 2 – paragraph 2 – point j e (new)
(je) crowdfunding services provided under the scope of Regulation (EU) 2020/1503.
Amendment 146 #
Proposal for a directive
Article 2 – paragraph 3 a (new)
Article 2 – paragraph 3 a (new)
3a. A Member State may derogate from Article 2 (1) in respect of credit agreements involving a total amount of credit of less than EUR 200 or more than EUR 100 000. Member States shall notify the Commission of the use of a derogation. The Commission shall publish a list of those derogations.
Amendment 148 #
Proposal for a directive
Article 2 – paragraph 4 a (new)
Article 2 – paragraph 4 a (new)
4a. In the case of credit agreements of less than 200 EUR and credit agreements under the terms of which the credit has to be repaid within three months, only Article 1, Article 2, Article 3, Article 8(1), Article 8(2)(a) to (c), Article 18(8), Article 19, Article 30 and Article 37 shall apply. The creditor shall also disclose the annual percentage rate of charge to the consumer in the advertising at the pre-contractual and contractual stage.
Amendment 150 #
Proposal for a directive
Article 2 – paragraph 4 b (new)
Article 2 – paragraph 4 b (new)
4b. In case of hiring and lease agreements where an obligation to purchase the object of the agreement is laid down either by the agreement itself or by any separate agreement, only Articles 1, Article 2, Article 3, Article 19, and Article 37 shall apply. The creditor shall also disclose the annual percentage rate of charge to the consumer in the advertising at the pre-contractual and contractual stage.
Amendment 151 #
Proposal for a directive
Recital 30
Recital 30
(30) In order to be able to make their decisions in full knowledge of the facts, consumers should receive adequate information, for careful consideration at their own leisure and convenience, at least one day prior to the conclusion of the credit agreement or of the agreement for the provision of crowdfunding credit services, including information on the conditions and cost of the credit and on their obligations, as well as adequate explanations thereof. These rules should be without prejudice to Council Directive 93/13/EEC29 . _________________ 29 Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts (OJ L 95, 21.4.1993, p. 29).
Amendment 151 #
Proposal for a directive
Article 2 – paragraph 4 c (new)
Article 2 – paragraph 4 c (new)
4c. In the case of credit agreements of less than 200 EUR and credit agreements under the terms of which the credit has to be repaid within three months and to credit agreements for amounts less than or equal to €3000 which do not provide for the payment of interest or other charges only Article 1, Article 2, Article 3,Article 8(1), Article 8(2)(a) to (c), Article18(8), Article 19, Article 30 and Article 37shall apply. The creditor shall also disclose the annual percentage rate of charge to the consumer in the advertising at the pre-contractual and contractual stage.
Amendment 152 #
Proposal for a directive
Recital 31
Recital 31
(31) Pre-contractual information should be provided through the Standard European Consumer Credit Information form. To help consumers understand and compare offers, a Standard European Consumer Credit Overview form summarising the key element of the credit should be provided in addition to the Standard European Consumer Credit Information form, through which consumers should see all essential information at a glance, even on the screen of a mobile telephone. Information should be clear, clearly legible and adapted to the technical constraints of certain media such as mobile telephone screens. It should be displayed in an adequate and suitable way on the different channels, to ensure that every consumer can access information on an equal basis and in line with Directive (EU) 2019/882 of the European Parliament and of the Council30 . _________________ 30 Directive (EU) 2019/882 of the European Parliament and of the Council of 17 April 2019 on the accessibility requirements for products and services (OJ L 151, 7.6.2019, p. 70).
Amendment 158 #
Proposal for a directive
Recital 32
Recital 32
(32) To ensure the fullest possible transparency and comparability of offers, pre-contractual information should, in particular, include the annual percentage rate of charge applicable to the credit, determined in the same way throughout the Union. As the annual percentage rate of charge can at this stage be indicated only through an example, such 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 or crowdfunding credit services under consideration and, if applicable, to the goods purchased. When determining the representative example, the frequency of certain types of credit agreement or crowdfunding credit services in a specific market should also be taken into account. As regards the borrowing rate, the frequency of instalments and the capitalisation of interest, creditors should use their usual method of calculation for the consumer credit concerned. In case pre-contractual information is provided less than one day before the consumer is bound by any credit agreement or agreement for the provision of crowdfunding credit services, the creditor and, where applicable, the credit intermediary or providers of crowdfunding credit services should remind consumers, one day after conclusion of the contract, of the possibility to withdraw from the credit agreement.
Amendment 158 #
Proposal for a directive
Article 3 – paragraph 1 – point 3
Article 3 – paragraph 1 – point 3
(3) ‘credit agreement’ means an agreement whereby a creditor grants or promises to grant to a consumer credit in the form of a deferred payment, loan or other similar financial accommodation, except for agreements for the provision on a continuing basis of services or for the supply of goods of the same kind, where the consumer pays for such services or goods for the duration of their provision by means of instalments and except of hiring or leasing agreements where an obligation to purchase the object of the agreement is not laid down either by the agreement itself or by any separate agreement;
Amendment 159 #
Proposal for a directive
Article 3 – paragraph 1 – point 4
Article 3 – paragraph 1 – point 4
(4) ‘crowdfunding credit services’ means services provided by a crowdfunding platform to facilitate the granting of consumer credit which falls outside of the scope of Regulation (EU) 2020/1503;
Amendment 162 #
Proposal for a directive
Article 3 – paragraph 1 – point 18
Article 3 – paragraph 1 – point 18
(18) ‘advisory services’ means personal paid recommendations to a consumer in respect of one or more transactions relating to credit agreements or crowdfunding credit services and that constitute a separate activity from the granting of a credit and from the and from the activities of credit intermediary as defined in point (12);
Amendment 170 #
Proposal for a directive
Recital 45
Recital 45
(45) Member States should take appropriate measures to promote responsible practices during all phases of the credit relationship, taking into account the specific features of their credit market. Those measures may include, for instance, the provision of information to, and the education of, consumers, including warnings about the risks attaching to default on payment and to over- indebtedness. In the expanding credit market, in particular, it is important that creditors should not engage in irresponsible lending or give out credit without prior assessment of creditworthiness. Member States should carry out the necessary supervision to avoid such behaviour of creditors and should determine the necessary means to sanction such behaviour. Without prejudice to the provisions on credit risk of Directive 2013/36/EU of the European Parliament and of the Council32 , creditors or providers of crowdfunding credit services should bear the responsibility of checking individually and proportionally the creditworthiness of the consumer. To that end, creditors or providers of crowdfunding credit services should be allowed to use information provided by the consumer not only during the preparation of the credit agreement or of the agreement for the provision of crowdfunding credit services in question, but also during a long standing commercial relationship. Consumers should also act with prudence and respect their contractual obligations. _________________ 32 Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338).
Amendment 170 #
Proposal for a directive
Article 6 – paragraph 1
Article 6 – paragraph 1
Member States shall ensure that the conditions to be fulfilled for being granted a credit do not discriminate against consumers legally resident in the Union on ground of their nationality or place of residence or on any ground as referred to in Article 21 of the Charter of Fundamental Rights of the European Union, when those consumers request, conclude or hold a credit agreement or crowdfunding credit services within the Union with exception of differences justified by objective criteria.
Amendment 173 #
Proposal for a directive
Recital 46
Recital 46
(46) It is essential that the consumer’s ability and propensity to repay the credit is assessed and verified before a credit agreement or an agreement for the provision of crowdfunding credit services is concluded. That assessment of creditworthiness should be done in the interest of the consumer, to prevent irresponsible lending practices and over- indebtedness, and should take into consideration all necessary and relevant factors that could influence a consumer’s ability to repay the credit. The assessment should be proportionate considering the risk-based approach, data minimalisation principle and cost-effectiveness. Member States should be able to issue additional guidance on additional criteria and methods to assess a consumer’s creditworthiness, for example by setting limits on loan-to-value or loan- to-income ratios.
Amendment 179 #
Proposal for a directive
Article 8 – paragraph 2 – subparagraph 1 – introductory part
Article 8 – paragraph 2 – subparagraph 1 – introductory part
2. The standard information shall be easily legible or clearly audible, as appropriate, and adapted to the technical constraints of the medium used for advertising and shall, if feasible, specify in a clear, concise and prominent way, by means of a representative example, all of the following elements:
Amendment 186 #
Proposal for a directive
Article 8 – paragraph 2 – subparagraph 2
Article 8 – paragraph 2 – subparagraph 2
In specific and justified cases where the medium used to communicate the standard information referred to in the first subparagraph does not allow the information to be visually displayed, points (e) and (f) in that subparagraph shall not apply. In cases of website pop- ups/banners, social networks advertising, and similar digital forms of advertising points (a), (e) and (f) in that subparagraph shall not apply and these information shall be included in a web page directly linked to such advertisements.
Amendment 187 #
Proposal for a directive
Recital 48
Recital 48
(48) The Proposal for a Regulation laying down harmonised rules on artificial intelligence (Artificial Intelligence Act), establishes that AI systems used to evaluate the credit score or creditworthiness of natural persons should be classified as high-risk AI systems, since they determine those persons’ access to financial resources or essential services such as housing, electricity, and telecommunication services. In view of those high stakes, whenever the creditworthiness assessment involves automated processing, the consumer should have a right to obtain human intervention on the part of the creditor or providers of crowdfunding credit services. The consumer should also have the right to obtain a meaningful explanation of the assessment made and of the functioning of the automated processing used, including among others the main variables, the logic and risks involved, as well as a right to express his or her point of view and to contest the assessment of the creditworthiness and the decision.
Amendment 194 #
Proposal for a directive
Article 9 – paragraph 2 – point e
Article 9 – paragraph 2 – point e
Amendment 196 #
Proposal for a directive
Article 10 – paragraph 1 – subparagraph 1
Article 10 – paragraph 1 – subparagraph 1
1. Member States shall require that the creditor and, where applicable, the credit intermediary or the provider of crowdfunding credit services provide the consumer with the pre-contractual information needed to compare different offers in order to take an informed decision on whether to conclude a credit agreement or crowdfunding credit services on the basis of the credit terms and conditions offered by the creditor or by the provider of crowdfunding credit services and, where applicable, the preferences expressed and information supplied by the consumer. Such pre-contractual information shall be provided to the consumer at least one day before he or she is bound by any credit agreement or offer, or by any agreement or offer for the provision of crowdfunding credit services.
Amendment 198 #
Proposal for a directive
Article 10 – paragraph 1 – subparagraph 2
Article 10 – paragraph 1 – subparagraph 2
Amendment 202 #
(57) Where a consumer withdraws from a credit agreement or an agreement for the provision of crowdfunding credit services in connection with which the consumer has received goods, in particular from a purchase in instalments or from a hiring or leasing agreement providing for an obligation to purchase, this Directive should be without prejudice to any regulation by Member States of questions concerning the return of the goods or any related questions.
Amendment 202 #
Proposal for a directive
Article 10 – paragraph 3 – subparagraph 1 – point g
Article 10 – paragraph 3 – subparagraph 1 – point g
(g) the annual percentage rate of charge and the total amount payable by the consumer, illustrated by means of a representative example mentioning all the assumptions used in order to calculate that rate; Where the consumer has informed the creditor or the provider of crowdfunding credit services of one or more components of his or her preferred credit, such as the duration of the credit agreement or of the agreement for the provision of crowdfunding credit services and the total amount of credit, the creditor or the provider of crowdfunding credit services shall take those components into account;
Amendment 206 #
Proposal for a directive
Article 10 – paragraph 3 – subparagraph 1 a (new)
Article 10 – paragraph 3 – subparagraph 1 a (new)
Elements stipulated in letters (c), (d), (e), (f), (g) and (m) shall be provided on the front page of the Standard European Consumer Credit Information, visually separated and highlighted in comparison with other elements of the other elements.
Amendment 209 #
Proposal for a directive
Recital 65
Recital 65
(65) The fixing of caps on interest rates, on annual percentage rates of charge and or the total cost of the credit to the consumer is a common practice in a number of Member States. Such capping has proved beneficial for consumers. In that context, Member States should be able to maintain their current legal regime. However, in an effort to increase consumer protection without imposing unnecessary limits on Member States, caps on interest rates, on annual percentage rates of charge and or on the total cost of the credit to the consumer should be introduced throughout the Union.
Amendment 209 #
Proposal for a directive
Article 10 – paragraph 4
Article 10 – paragraph 4
Amendment 220 #
Proposal for a directive
Article 10 – paragraph 5 – subparagraph 1
Article 10 – paragraph 5 – subparagraph 1
5. Information displayed in the Standard European Consumer Credit Information form and in the Standard European Consumer Credit Overview form shall be consistent. It shall be clearly legible and take into account the technical constraints of the medium on which it is displayed. Information shall be displayed in an adequate and suitable way on the different channels.
Amendment 221 #
Proposal for a directive
Article 10 – paragraph 5 – subparagraph 2
Article 10 – paragraph 5 – subparagraph 2
Any additional information which the creditor may provide to the consumer shall be given in a separate document which may be annexed to the Standard European Consumer Credit Information form or the Standard European Consumer Credit Overview form.
Amendment 228 #
Proposal for a directive
Article 10 – paragraph 7
Article 10 – paragraph 7
7. If the agreement has been concluded at the consumer's request using a means of distance communication which does not enable the information to be provided in accordance with this article, the creditor and, where applicable, the credit intermediary or the provider of crowdfunding credit services shall provide the consumer with the Standard European Consumer Credit Information form and the Standard European Consumer Credit Overview form immediately after the conclusion of the credit agreement or of the agreement for the provision of crowdfunding credit services.
Amendment 230 #
Proposal for a directive
Article 10 – paragraph 8
Article 10 – paragraph 8
8. Upon request from the consumer, the creditor and, where applicable, the credit intermediary or the provider of crowdfunding credit services shall, in addition to the Standard European Consumer Credit Information form and the Standard European Consumer Credit Overview form, provide the consumer free of charge with a copy of the draft credit agreement, or of the draft agreement for the provision of crowdfunding credit services, provided that the creditor at the time of the request is willing to proceed to the conclusion of the credit agreement or of the agreement for the provision of crowdfunding credit services with the consumer.
Amendment 231 #
Proposal for a directive
Recital 87
Recital 87
(87) Member States should apply the measures necessary to comply with this Directive from [OP: please insert date: sixtwenty four months from the transposition deadline]. However, taking into account the difficult economic circumstances created by the COVID-19 pandemic and the specific challenges faced by micro, small and medium undertakings, such undertakings should be provided with sufficient time to prepare for the application of this Directive. Hence, as regards micro, small and medium undertakings, Member States should apply the measures necessary to comply with this Directive from [OP: please insert date: 18 months from the transposition deadline].
Amendment 233 #
Proposal for a directive
Article 11 – paragraph 3
Article 11 – paragraph 3
Amendment 234 #
Proposal for a directive
Article 11 – paragraph 4
Article 11 – paragraph 4
4. Information displayed in the European Consumer Credit Information form and in the Standard Consumer Credit Overview form shall be consistent. It shall be clearly legible and take into account the technical constraints of the medium on which it is displayed. Information shall be displayed in an adequate and suitable way on the different channels.
Amendment 236 #
Proposal for a directive
Article 11 – paragraph 6
Article 11 – paragraph 6
6. Upon request from the consumer, the creditor and, where applicable, the credit intermediary shall, in addition to the European Consumer Credit Information and the Standard European Consumer Credit Overview form, provide the consumer free of charge with a copy of the draft credit agreement, provided that the creditor at the time of the request is willing to proceed to the conclusion of the credit agreement with the consumer.
Amendment 238 #
Proposal for a directive
Article 11 – paragraph 7
Article 11 – paragraph 7
7. If the agreement has been concluded at the consumer's request using a means of distance communication which does not enable the information to be provided in accordance with this Article, the creditor shall immediately after the conclusion of the credit agreement provide the consumer with the European Consumer Credit Information form and the Standard European Consumer Credit Overview form immediately after the conclusion of the credit agreement.
Amendment 242 #
Proposal for a directive
Article 13
Article 13
Amendment 247 #
Proposal for a directive
Article 14 – paragraph 1
Article 14 – paragraph 1
1. Member States mayshall allow bundling practices but shall prohibit tying practices.
Amendment 248 #
Proposal for a directive
Article 2 – paragraph 2 – point j a (new)
Article 2 – paragraph 2 – point j a (new)
Amendment 253 #
Proposal for a directive
Article 2 – paragraph 2 – point j b (new)
Article 2 – paragraph 2 – point j b (new)
(j b) deferred debit cards and deferred payments offered free of interest and charges to be paid less than 30 days from delivery of the good or service;
Amendment 254 #
Proposal for a directive
Article 14 – paragraph 3
Article 14 – paragraph 3
3. By way of derogation from paragraph 1 and without prejudice to the application of competition law, Member States may allow tying practices where the creditor or the provider of crowdfunding credit services can demonstrate to the competent authority that the tied products or categories of product offered, on terms and conditions similar to each other, aresult in a clear of benefit to the consumers taking due account of the availability and the prices of the relevant products offered on the market.
Amendment 255 #
Proposal for a directive
Article 14 – paragraph 4
Article 14 – paragraph 4
4. Member States may allow creditors or providers of crowdfunding credit services to require the consumer to hold a relevant insurance policy related to the credit agreement or crowdfunding credit services, taking into account proportionality considerations. In such cases, Member States shall ensure that the creditor or the provider of crowdfunding credit services is required to accept the insurance policy from a supplier different to his or her preferred supplier where such insurance policy has a level of guarantee equivalent to the one the creditor or the provider of crowdfunding credit services has proposed, without modifying the condition of the credit offering to the consumerArticle 24 of Directive (EU) 2016/97 applies.
Amendment 256 #
Proposal for a directive
Article 2 – paragraph 2 – point j c (new)
Article 2 – paragraph 2 – point j c (new)
(j c) credit agreements in the form of an overdraft facility where the credit has to be repaid within one month;
Amendment 258 #
Proposal for a directive
Article 2 – paragraph 2 – point j d (new)
Article 2 – paragraph 2 – point j d (new)
(j d) credit agreements where the credit is granted free of interest and without any other charges and credit agreements under the terms of which the credit has to be repaid within three months and only insignificant charges are payable;
Amendment 259 #
Proposal for a directive
Article 2 – paragraph 2 – point j e (new)
Article 2 – paragraph 2 – point j e (new)
(j e) crowdfunding services provided under the scope of Regulation (EU) 2020/1503;
Amendment 260 #
Proposal for a directive
Article 2 – paragraph 2 – point j f (new)
Article 2 – paragraph 2 – point j f (new)
(j f) credit agreements provided by intermediaries and business for whom the provision of such credit agreements does not constitute their core business, and they are provided to consumers merely as payment option.
Amendment 261 #
Proposal for a directive
Article 2 – paragraph 3 a (new)
Article 2 – paragraph 3 a (new)
3 a. A Member State may derogate from Article 2 (1) in respect of credit agreements involving a total amount of credit of less than EUR 200 or more than EUR 100 000. Member States shall notify the Commission of the use of a derogation. The Commission shall publish a list of those derogations.
Amendment 267 #
Proposal for a directive
Article 2 – paragraph 4 a (new)
Article 2 – paragraph 4 a (new)
4 a. In the case of credit agreements of less than 200 EUR and credit agreements under the terms of which the credit has to be repaid within three months, only Article 1, Article 2, Article 3, Article 8(1), Article 8(2)(a) to (c), Article 18(8), Article 19, Article 30 and Article 37 shall apply. The creditor shall also disclose the annual percentage rate of charge to the consumer in the advertising at the pre-contractual and contractual stage.
Amendment 269 #
Proposal for a directive
Article 2 – paragraph 4 b (new)
Article 2 – paragraph 4 b (new)
4 b. In case of hiring and lease agreements where an obligation to purchase the object of the agreement is laid down either by the agreement itself or by any separate agreement, only Articles 1, Article 2, Article 3, Article 19, and Article 37 shall apply. The creditor shall also disclose the annual percentage rate of charge to the consumer in the advertising at the pre-contractual and contractual stage.
Amendment 274 #
Proposal for a directive
Article 16 – paragraph 5
Article 16 – paragraph 5
5. Member States shallmay require that creditors and, where applicable, credit intermediaries or providers of crowdfunding credit services to warn a consumer when a credit agreement or crowdfunding credit services may induce a specific risk for the consumer considering his or her financial situation.
Amendment 276 #
Proposal for a directive
Article 3 – paragraph 1 – point 3
Article 3 – paragraph 1 – point 3
(3) ‘credit agreement’ means an agreement whereby a creditor grants or promises to grant to a consumer credit in the form of a deferred payment, loan or other similar financial accommodation, except for agreements for the provision on a continuing basis of services or for the supply of goods of the same kind, where the consumer pays for such services or goods for the duration of their provision by means of instalments and except of hiring or leasing agreements where an obligation to purchase the object of the agreement is not laid down either by the agreement itself or by any separate agreement;
Amendment 277 #
Proposal for a directive
Article 17 – paragraph 1
Article 17 – paragraph 1
Without prejudice to the possibility of marketing communication, Member States shall prohibit any salegranting of credit to consumers, without their prior request and explicit agreement.
Amendment 282 #
Proposal for a directive
Article 3 – paragraph 1 – point 4
Article 3 – paragraph 1 – point 4
(4) ‘crowdfunding credit services’ means services provided by a crowdfunding platform to facilitate the granting of consumer credit which falls outside of the scope of Regulation (EU) 2020/1503;
Amendment 284 #
Proposal for a directive
Article 17 – paragraph 1 a (new)
Article 17 – paragraph 1 a (new)
The provision in paragraph 1 shall not apply to credit agreements concluded at a point of sale.
Amendment 286 #
Proposal for a directive
Article 18 – paragraph 1
Article 18 – paragraph 1
1. Member States shall require that, before concluding a credit agreement, or an agreement for the provision of crowdfunding credit services, the creditor or, where applicable, the provider of crowdfunding credit services makes a thorough assessment of the consumer’s creditworthiness. That assessment shall be proportionate and be done in the interest of the consumer, to prevent irresponsible lending practices and over-indebtedness, and shall take appropriate account of factors relevant to verifying the prospect of the consumer to meet his or her obligations under the credit agreement or the agreement for the provision of crowdfunding credit serviceswhile bearing in mind the proportionate risk assessment to protect financial stability of the creditor and provider of the crowdfunding services and shall take appropriate account of nature, duration, amount of the credit and the risk and profile of the consumer and of factors relevant to verifying the prospect of the consumer to meet his or her obligations under the credit agreement or the agreement for the provision of crowdfunding credit services, according to the nature, duration and amount of the credit and the risk profile of the consumer. The obligation to assess the creditworthiness is considered fulfilled if the creditor has met the requirements provided by Directive 2013/36/EU, Regulation n. 575/2013 EU and EBA Guidelines ABE/GL/2020/06.
Amendment 299 #
Proposal for a directive
Article 18 – paragraph 2 – subparagraph 1
Article 18 – paragraph 2 – subparagraph 1
2. The assessment of creditworthiness shall be carried out on the basis of relevant and accurate information on the consumer’s income and expenses and other financial and economic circumstances which is necessary and proportionate such as evidence of income or other sources of repayment, information on financial assets and liabilities, or information on other financial commitmentsthat shall take appropriate account of nature, duration, amount of the credit and the risk and profile of the consumer. The information shall be obtained from relevant internal or external sources, including the consumer and, where necessary, on the basis of a consultation of a database referred to in Article 19.
Amendment 300 #
Proposal for a directive
Article 18 – paragraph 2 – subparagraph 2
Article 18 – paragraph 2 – subparagraph 2
Amendment 300 #
Proposal for a directive
Article 3 – paragraph 1 – point 25 a (new)
Article 3 – paragraph 1 – point 25 a (new)
(25 a) benchmark’ means any index by reference as defined in Article 3, section 1, point (3), of Regulation (EU) 2016/1011.
Amendment 302 #
Proposal for a directive
Article 18 – paragraph 2 – subparagraph 2
Article 18 – paragraph 2 – subparagraph 2
The information obtained in accordance with this paragraph shall be appropriately verified, where necessary through reference to independently verifiable documentation or by using statistical methods within automated decision- making systems.
Amendment 308 #
Proposal for a directive
Article 18 – paragraph 3 – subparagraph 2
Article 18 – paragraph 3 – subparagraph 2
Member States shall also require that after the conclusion of the credit agreement involving a total amount of credit of more than EUR 50.000, the creditor or the provider of crowdfunding credit services documents and maintains the information referred to in paragraph 2. for a period of at least one year.
Amendment 312 #
Proposal for a directive
Article 18 – paragraph 4 – subparagraph 1
Article 18 – paragraph 4 – subparagraph 1
4. Member States shall ensure that the creditor or the provider of crowdfunding credit services may only makes the credit available to the consumer where the result of the creditworthiness assessment indicates that the obligations resulting from the credit agreement or the agreement for the provision of crowdfunding credit services are likely to be met in the manner required under that agreement.
Amendment 313 #
Proposal for a directive
Article 6 – paragraph 1
Article 6 – paragraph 1
Member States shall ensure that the conditions to be fulfilled for being granted a credit do not discriminate against consumers legally resident in the Union on ground of their nationality or place of residence or on any ground as referred to in Article 21 of the Charter of Fundamental Rights of the European Union, when those consumers request, conclude or hold a credit agreement or crowdfunding credit services within the Union with exception of differences justified by objective criteria.
Amendment 318 #
Proposal for a directive
Article 18 – paragraph 4 – subparagraph 2
Article 18 – paragraph 4 – subparagraph 2
Notwithstanding the first subparagraphs, where the result of the creditworthiness assessment indicates that the obligations resulting from the credit agreement or the agreement for the provision of crowdfunding credit services are not likely to be met in the manner required under that agreement, the creditor or the provider of crowdfunding credit services may exceptionally make credit available to the consumer in specific and well justified circumstances.
Amendment 319 #
Proposal for a directive
Article 18 – paragraph 4 a (new)
Article 18 – paragraph 4 a (new)
4a. A positive creditworthiness assessment shall not oblige the creditor to provide credit.
Amendment 320 #
Proposal for a directive
Article 18 – paragraph 5
Article 18 – paragraph 5
Amendment 322 #
Proposal for a directive
Article 18 – paragraph 6 – point b
Article 18 – paragraph 6 – point b
(b) request and obtain from the creditor or the provider of crowdfunding credit services a clear explanation of the assessment of creditworthiness, including on the logic and risks involved in the automated processing of personal data as well as its significance and effects on the decision;
Amendment 323 #
Proposal for a directive
Article 18 – paragraph 6 – point b
Article 18 – paragraph 6 – point b
(b) request and obtain from the creditor or the provider of crowdfunding credit services a clearn explanation of the assessment of creditworthiness, including on the logic and risks involved in the automated processing of personal data as well as its significance and effects on the decision;
Amendment 324 #
Proposal for a directive
Article 18 – paragraph 6 – point c
Article 18 – paragraph 6 – point c
Amendment 325 #
Proposal for a directive
Article 18 – paragraph 6 – point c
Article 18 – paragraph 6 – point c
(c) express his or her point of view and contest the assessment of the creditworthiness and the decision.
Amendment 327 #
Proposal for a directive
Article 18 – paragraph 7
Article 18 – paragraph 7
7. Member States shall ensure that where the credit application is rejected the creditor or the provider of crowdfunding credit services is required to inform the consumer without delay of the rejection and, where applicable, of the fact that the assessment of creditworthiness is based on automated processing of data.
Amendment 329 #
Proposal for a directive
Article 8 – paragraph 2 – introductory part
Article 8 – paragraph 2 – introductory part
2. The standard information shall be easily legible or clearly audible, as appropriate, and adapted to the technical constraints of the medium used for advertising and shall, if feasible, specify in a clear, concise and prominent way, by means of a representative example, all of the following elements considering the relevance or existence of the elements for a type of advertised credit:
Amendment 330 #
Proposal for a directive
Article 18 – paragraph 9 a (new)
Article 18 – paragraph 9 a (new)
9a. A Member State may derogate from Article 18 in respect of credit agreements involving a total amount of credit of less than EUR 200, credit agreements where the credit is granted free of interest and without any other charges and credit agreements under the terms of which the credit has to be repaid within three months. Member States shall notify the Commission of the use of such derogation. The Commission shall publish a list of those derogations.
Amendment 333 #
Proposal for a directive
Article 19 – paragraph 2
Article 19 – paragraph 2
2. Paragraph 1 shall apply both to public and private credit databases.
Amendment 336 #
Proposal for a directive
Article 8 – paragraph 2 – subparagraph 1
Article 8 – paragraph 2 – subparagraph 1
In specific and justified cases where the medium used to communicate the standard information referred to in the first subparagraph does not allow the information to be visually displayed, points (e) and (f) in that subparagraph shall not apply. In cases of website pop- ups/banners, social networks advertising, sms, and similar digital forms of advertising points (a), (e) and (f) in that subparagraph shall not apply and these information shall be included in a web page directly linked to such advertisements.
Amendment 352 #
Proposal for a directive
Article 9 – paragraph 2 – point e
Article 9 – paragraph 2 – point e
Amendment 358 #
Proposal for a directive
Article 26 – paragraph 1 – subparagraph 2 – point b
Article 26 – paragraph 1 – subparagraph 2 – point b
(b) the day on which the consumer receives the contractual terms and conditions and informationinformation on the right of withdrawal in accordance with Articles 20 and 21, if that day is later than the date referred to in point (a) of this subparagraph1.1 p).
Amendment 360 #
Proposal for a directive
Article 26 – paragraph 1 – subparagraph 3 a (new)
Article 26 – paragraph 1 – subparagraph 3 a (new)
If the creditor or the provider of crowdfunding credit services has not provided the consumer with the information on the right of withdrawal in accordance with Article 21.1 p), the withdrawal period shall expire 6 months after the day of the conclusion of the credit agreement or of the agreement for the provision of crowdfunding credit services.
Amendment 360 #
Proposal for a directive
Article 10 – paragraph 1 – introductory part
Article 10 – paragraph 1 – introductory part
1. Member States shall require that the creditor and, where applicable, the credit intermediary or the provider of crowdfunding credit services provide the consumer with the pre-contractual information needed to compare different offers in order to take an informed decision on whether to conclude a credit agreement or crowdfunding credit services on the basis of the credit terms and conditions offered by the creditor or by the provider of crowdfunding credit services and, where applicable, the preferences expressed and information supplied by the consumer. Such pre-contractual information shall be provided to the consumer at least one day before he or she is bound by any credit agreement or offer, or by any agreement or offer for the provision of crowdfunding credit services”.
Amendment 362 #
Proposal for a directive
Article 10 – paragraph 1 – subparagraph 1
Article 10 – paragraph 1 – subparagraph 1
Amendment 370 #
Proposal for a directive
Article 29 – paragraph 1
Article 29 – paragraph 1
1. Member States shall ensure that the consumer is at any time entitled to early repayment. In such cases, the consumer shall be entitled to a reduction in the total cost of the credit, consisting of the interest and the costs for the remaining duration of the contract. When calculating that reduction, all the costs imposed on the consumer by the creditor shall be taken into considerationexcept for the costs corresponding to services effectively provided to the consumer or to costs effectively incurred by the creditor, as well as third party costs shall be taken into consideration. The upfront costs should be identified in the credit contract. Costs that remunerate credit intermediaries' activities or costs that do not remunerate creditor’s services as well as taxes are excluded from the calculation of the reduction of the total cost of credit. As regards the method of reimbursement the amortised cost criterion (interest curve) for the calculation of the proportional reduction of costs should be used unless otherwise regulated in the contract.
Amendment 373 #
Proposal for a directive
Article 29 – paragraph 4
Article 29 – paragraph 4
Amendment 380 #
Proposal for a directive
Article 31
Article 31
Amendment 387 #
Proposal for a directive
Article 31 – paragraph 1 – introductory part
Article 31 – paragraph 1 – introductory part
1. Member States shallmay introduce caps on one or more of the following:
Amendment 391 #
Proposal for a directive
Article 10 – paragraph 3 – point g
Article 10 – paragraph 3 – point g
(g) the annual percentage rate of charge and the total amount payable by the consumer, illustrated by means of a representative example mentioning all the assumptions used in order to calculate that rate; Where the consumer has informed the creditor or the provider of crowdfunding credit services of one or more components of his or her preferred credit, such as the duration of the credit agreement or of the agreement for the provision of crowdfunding credit services and the total amount of credit, the creditor or the provider of crowdfunding credit services shall take those components into account;
Amendment 400 #
Proposal for a directive
Article 31 – paragraph 2
Article 31 – paragraph 2
2. Member States may introduce additional caps for revolving credit facilitiesThe provision of Paragraph 1 is considered fulfilled whereas there are national legislations already in force setting up caps on one of the options listed in letters a, b, c.
Amendment 414 #
Proposal for a directive
Article 10 – paragraph 3 – subparagraph 1 a (new)
Article 10 – paragraph 3 – subparagraph 1 a (new)
Elements stipulated in letters (c), (d), (e), (f), (g) and (m) shall be provided on the front page of the Standard European Consumer Credit Information, visually separated and highlighted in comparison with other elements of the other elements.
Amendment 418 #
Proposal for a directive
Article 10 – paragraph 4
Article 10 – paragraph 4
Amendment 423 #
Proposal for a directive
Article 34 – paragraph 2
Article 34 – paragraph 2
2. The Commission shall assess and publish a report on the financial education available toNot later than 12 months from the date the Directive is adopted, the Commission shall adopt delegating act with measurable result indicators, enabling Member States to benchmark themselves with other countries and assess and publish a report on progress in financial literacy of consumers in the Member States and identify examples of best practices which could be further developed in order to increase the financial awareness of consumers.
Amendment 442 #
Proposal for a directive
Article 10 – paragraph 5 – introductory part
Article 10 – paragraph 5 – introductory part
5. Information displayed in the Standard European Consumer Credit Information form and in the Standard European Consumer Credit Overview form shall be consistent. It shall be clearly legible and take into account the technical constraints of the medium on which it is displayed. Information shall be displayed in an adequate and suitable way on the different channels.
Amendment 449 #
Proposal for a directive
Article 10 – paragraph 5 – subparagraph 1
Article 10 – paragraph 5 – subparagraph 1
Any additional information which the creditor may provide to the consumer shall be given in a separate document which may be annexed to the Standard European Consumer Credit Information form or the Standard European Consumer Credit Overview form.
Amendment 455 #
Proposal for a directive
Article 37 – paragraph 1 a (new)
Article 37 – paragraph 1 a (new)
An entity admitted, registered or authorised pursuant to national law applicable to provision of services stipulated in this Directive prior to the entry into force of this Directive is considered admitted, registered or authorised for providing services according to this Directive for which it was authorised or registered according to national law.
Amendment 456 #
Proposal for a directive
Article 37 – paragraph 1 b (new)
Article 37 – paragraph 1 b (new)
Where an creditor and credit intermediary admitted, registered or authorised pursuant to national law applicable to services that are included in the scope of this Directive prior to the entry into force of this Directive, applies for admission, authorisation or registration as service provider under this Directive, the Member State shall not require that entity to provide information or documents which it has already submitted when applying for admission, authorisation or registration pursuant to national law, provided that such information or documents remain up-to-date and are accessible to the competent authority.
Amendment 456 #
Proposal for a directive
Article 10 – paragraph 7
Article 10 – paragraph 7
7. If the agreement has been concluded at the consumer's request using a means of distance communication which does not enable the information to be provided in accordance with this article, the creditor and, where applicable, the credit intermediary or the provider of crowdfunding credit services shall provide the consumer with the Standard European Consumer Credit Information form and the Standard European Consumer Credit Overview form immediately after the conclusion of the credit agreement or of the agreement for the provision of crowdfunding credit services.
Amendment 457 #
Proposal for a directive
Article 37 – paragraph 1 c (new)
Article 37 – paragraph 1 c (new)
Amendment 464 #
Proposal for a directive
Article 44 – paragraph 1
Article 44 – paragraph 1
1. Member States shall lay down the rules on penalties applicable to infringements of the national provisions adopted pursuant to this Directive and shall take all measures necessary to ensure that they are implemented. The penalties provided for shall be effective, proportionate and dissuasive. Member States shall notify those rules and of those measures to the Commission by [OP: please insert date - six24 months from the transposition deadline] and shall notify it, without delay, of any subsequent amendment affecting them.
Amendment 465 #
Proposal for a directive
Article 44 – paragraph 2
Article 44 – paragraph 2
2. Member States shall ensure that when penalties are to be imposed in accordance with Article 21 of Regulation (EU) 2017/2394, they include the possibility either to impose fines through administrative procedures or to initiate legal proceedings for the imposition of fines, or both, the maximum amount of such fines being at least 1% and not more than 4% of the creditor, the credit intermediary or the provider of crowdfunding credit services’ annual turnover in all Member States concerned by the coordinated enforcement action. Member states shall proportionally reduce the fine in case when the turnover of the enterprise comprises not only of providing consumer credits, but also of other activities.
Amendment 465 #
Proposal for a directive
Article 10 – paragraph 8
Article 10 – paragraph 8
8. Upon request from the consumer, the creditor and, where applicable, the credit intermediary or the provider of crowdfunding credit services shall, in addition to the Standard European Consumer Credit Information form and the Standard European Consumer Credit Overview form, provide the consumer free of charge with a copy of the draft credit agreement, or of the draft agreement for the provision of crowdfunding credit services, provided that the creditor at the time of the request is willing to proceed to the conclusion of the credit agreement or of the agreement for the provision of crowdfunding credit services with the consumer.
Amendment 467 #
Proposal for a directive
Article 46 – paragraph 1
Article 46 – paragraph 1
1. The Commission shall undertake, every five years and for the first time five years from the date of application, an evaluation of this Directive. The evaluation shall include (a) an assessment of the thresholds laid down in Article 2(2), point c, and in Part II of Annex IV, and(b) an assessment of the percentages used to calculate the compensation payable in the event of early repayment as referred to in Article 29, in the light of economic trends in the Union and the situation in the market concerned. ; (c) the functioning of the market for consumer credit in the Union, including market development and trends, taking into account supervisory experience, the number of providers and their market share, as well as the impact of this Directive in relation to other relevant Union law; (d) whether the requirements set out in Article 10, Article 11 and Article 18 remain appropriate to pursue the objectives of this Directive; (e) the impact of this Regulation on the proper functioning of the Union’s internal market for consumer credit; (f) the implementation of technological innovation in the lending sector, including the application of new innovative business models and technologies including electronic identification; (g) whether the information to be included in the credit agreement set out in Article 21 remain appropriate to pursue the objectives of this Directive; (h) the effects that national laws, regulations and administrative provisions governing marketing communications have on the freedom to provide services, competition and investor protection; (i) the total number and the market share of creditors and crowdfunding providers registered under this Directive, classified by small, medium-sized and large enterprises; (j) volumes and trends of the cross- border provision of credits per Member State; (k) the share of the credits provided under this Directive in the global credit market and the Union financial market; (l) the costs of complying with this Directive for creditors and crowdfunding service providers as a percentage of operational costs; (m) the volume of credits withdrawn by consumers within the withdrawal period, its share of the total volume of credits, classified by a type and size of the credit, including credits under EUR 200, and, based on those data, assess whether the duration and the nature of the withdrawal period set out in Article 26 is appropriate and does not harm the efficiency of the capital raising process or investor protection; (n) the number and amount of penalties imposed according to or in relation with this Directive classified by Member States; (o) types and trends of fraudulent or other undesirable behaviour of creditors, crowdfunding service providers, third parties and consumers occurring in relation to this Directive.
Amendment 468 #
Proposal for a directive
Article 47 – paragraph 1
Article 47 – paragraph 1
Directive 2008/48/EC is repealed with effect from [OP: please insert date - sixtwenty-four months from the transposition deadline]. However, as regards relations, within the scope of this Directive, between consumers and creditors or credit intermediaries or providers of crowdfunding credit services who qualify as micro, small and medium undertakings as referred to in Article 3 of Directive 2013/34/EU of the European Parliament and of the Council45 , Directive 2008/48/EC shall continue to apply until [OP: please insert date - 1830 months from the transposition deadline]. __________________ 45 Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19).
Amendment 469 #
Proposal for a directive
Article 47 – paragraph 2
Article 47 – paragraph 2
Directive 2008/48/EC shall also continue to apply to credit agreements existing on [OP: please insert date - six24 months from the transposition deadline] until [their termination].
Amendment 471 #
Proposal for a directive
Article 47 – paragraph 3
Article 47 – paragraph 3
However, Articles 23 and 24, Article 25(1), second sentence, Article 25(2) and Articles 28 and 39 of this Directive shall apply to all open-end credit agreements existing on [OP: please insert date - sixtwenty four months from the transposition deadline].
Amendment 473 #
Proposal for a directive
Article 48 – paragraph 1 – subparagraph 1
Article 48 – paragraph 1 – subparagraph 1
1. Member States shall adopt and publish, by [OP: please insert date - 24 months from the date the Directive is adopted] at the latest, the laws, regulations and administrative provisions necessary to comply with this Directive. They shall forthwith communicate to the Commission the text of those provisions. They shall apply those measures from [OP: please insert date - six24 months from the transposition deadline].
Amendment 475 #
Proposal for a directive
Article 48 – paragraph 1 – subparagraph 2
Article 48 – paragraph 1 – subparagraph 2
Amendment 477 #
Proposal for a directive
Annex II
Annex II
Amendment 477 #
Proposal for a directive
Article 11 – paragraph 3
Article 11 – paragraph 3
Amendment 482 #
Proposal for a directive
Article 11 – paragraph 4
Article 11 – paragraph 4
4. Information displayed in the European Consumer Credit Information form and in the Standard Consumer Credit Overview form shall be consistent. It shall be clearly legible and take into account the technical constraints of the medium on which it is displayed. Information shall be displayed in an adequate and suitable way on the different channels.
Amendment 485 #
Proposal for a directive
Article 11 – paragraph 6
Article 11 – paragraph 6
6. Upon request from the consumer, the creditor and, where applicable, the credit intermediary shall, in addition to the European Consumer Credit Information and the Standard European Consumer Credit Overview form, provide the consumer free of charge with a copy of the draft credit agreement, provided that the creditor at the time of the request is willing to proceed to the conclusion of the credit agreement with the consumer.
Amendment 492 #
Proposal for a directive
Article 11 – paragraph 7
Article 11 – paragraph 7
7. If the agreement has been concluded at the consumer's request using a means of distance communication which does not enable the information to be provided in accordance with this Article, the creditor shall immediately after the conclusion of the credit agreement provide the consumer with the European Consumer Credit Information form and the Standard European Consumer Credit Overview form immediately after the conclusion of the credit agreement.
Amendment 499 #
Proposal for a directive
Article 13
Article 13
Amendment 508 #
Proposal for a directive
Article 14 – paragraph 1
Article 14 – paragraph 1
1. Member States mayshall allow bundling practices butand shall prohibit tying practices.
Amendment 514 #
Proposal for a directive
Article 14 – paragraph 3
Article 14 – paragraph 3
3. By way of derogation from paragraph 1 and without prejudice to the application of competition law, Member States may allow tying practices where the creditor or the provider of crowdfunding credit services can demonstrate to the competent authority that the tied products or categories of product offered, on terms and conditions similar to each other, aresult in a clear of benefit to the consumers taking due account of the availability and the prices of the relevant products offered on the market.
Amendment 518 #
Proposal for a directive
Article 14 – paragraph 4
Article 14 – paragraph 4
4. Member States may allow creditors or providers of crowdfunding credit services to require the consumer to hold a relevant insurance policy related to the credit agreement or crowdfunding credit services, taking into account proportionality considerations. In such cases, Member States shall ensure that the creditor or the provider of crowdfunding credit services is required to accept the insurance policy from a supplier different to his or her preferred supplier where such insurance policy has a level of guarantee equivalent to the one the creditor or the provider of crowdfunding credit services has proposed, without modifying the condition of the credit offering to the consumerArticle 24 of Directive(EU) No 2016/97 applies.
Amendment 537 #
Proposal for a directive
Article 16 – paragraph 5
Article 16 – paragraph 5
5. Member States shallmay require that creditors and, where applicable, credit intermediaries or providers of crowdfunding credit services to warn a consumer when a credit agreement or crowdfunding credit services may induce a specific risk for the consumer considering his or her financial situation.
Amendment 543 #
Proposal for a directive
Article 17 – paragraph 1
Article 17 – paragraph 1
Without prejudice to the possibility of marketing communication, Member States shall prohibit any salegranting of credit to consumers, without their prior request and explicit agreement.
Amendment 547 #
Proposal for a directive
Article 17 – paragraph 1 a (new)
Article 17 – paragraph 1 a (new)
The provision in paragraph 1 shall not apply to credit agreements concluded at a point of sale.
Amendment 549 #
Proposal for a directive
Article 18 – paragraph 1
Article 18 – paragraph 1
1. Member States shall require that, before concluding a credit agreement, or an agreement for the provision of crowdfunding credit services, the creditor or, where applicable, the provider of crowdfunding credit services makes a thorough assessment of the consumer’s creditworthiness. That assessment shall be proportionate and be done in the interest of the consumer, to prevent irresponsible lending practices and over-indebtedness, while bearing in mind the proportionate risk assessment to protect financial stability of the creditor and provider of the crowdfunding services and shall take appropriate account of factors relevant to verifying the prospect of the consumer to meet his or her obligations under the credit agreement or the agreement for the provision of crowdfunding credit services, according to the nature, duration and amount of the credit and the risk profile of the consumer. The obligation to assess the creditworthiness is considered fulfilled if the creditor has met the requirements provided by Directive2013/36/EU, Regulation n. 575/2013 EU and EBA Guidelines ABE/GL/2020/06.
Amendment 562 #
Proposal for a directive
Article 18 – paragraph 2 – introductory part
Article 18 – paragraph 2 – introductory part
2. The assessment of creditworthiness shall be carried out on the basis of relevant and accurate information on the consumer’s income and expenses and other financial and economic circumstances which is necessary and proportionate such as evidence of income or other sources of repayment, information on financial assets and liabilities, or information on other financial commitmentsthat shall take appropriate account of nature, duration, amount of the credit and the risk and profile of the consumer. The information shall be obtained from relevant internal or external sources, including the consumer and, where necessary, on the basis of a consultation of a database referred to in Article 19.
Amendment 565 #
Proposal for a directive
Article 18 – paragraph 2 – subparagraph 1
Article 18 – paragraph 2 – subparagraph 1
Amendment 568 #
Proposal for a directive
Article 18 – paragraph 2 – subparagraph 1
Article 18 – paragraph 2 – subparagraph 1
The information obtained in accordance with this paragraph shall be appropriately verified, where necessary through reference to independently verifiable documentation or by using statistical methods within automated decision- making systems.
Amendment 581 #
Proposal for a directive
Article 18 – paragraph 3 – introductory part
Article 18 – paragraph 3 – introductory part
3. Member States shall also require that the creditor or, where applicable, the provider of crowdfunding credit services establishes procedures for the assessment referred to in paragraph 1 and thatafter the conclusion of the credit agreement involving a total amount of credit of more than EUR 50.000, the creditor or the provider of crowdfunding credit services documents and maintains such proceduresthe information referred to in paragraph 2 for a period of at least one year.
Amendment 588 #
Proposal for a directive
Article 18 – paragraph 4 – introductory part
Article 18 – paragraph 4 – introductory part
4. Member States shall ensure that the creditor or the provider of crowdfunding credit services may only makes the credit available to the consumer where the result of the creditworthiness assessment indicates that the obligations resulting from the credit agreement or the agreement for the provision of crowdfunding credit services are likely to be met in the manner required under that agreement.
Amendment 597 #
Proposal for a directive
Article 18 – paragraph 4 a (new)
Article 18 – paragraph 4 a (new)
4 a. A positive creditworthiness assessment shall not oblige the creditor to provide credit.
Amendment 598 #
Proposal for a directive
Article 18 – paragraph 5
Article 18 – paragraph 5
Amendment 611 #
Proposal for a directive
Article 18 – paragraph 6 – point b
Article 18 – paragraph 6 – point b
(b) request and obtain from the creditor or the provider of crowdfunding credit services a clear explanation of the assessment of creditworthiness, including on the logic and risks involved in the automated processing of personal data as well as its significance and effects on the decision;
Amendment 615 #
Proposal for a directive
Article 18 – paragraph 6 – point c
Article 18 – paragraph 6 – point c
Amendment 617 #
Proposal for a directive
Article 18 – paragraph 6 – point c
Article 18 – paragraph 6 – point c
(c) express his or her point of view and contest the assessment of the creditworthiness and the decision.
Amendment 619 #
Proposal for a directive
Article 18 – paragraph 7
Article 18 – paragraph 7
7. Member States shall ensure that where the credit application is rejected the creditor or the provider of crowdfunding credit services is required to inform the consumer without delay of the rejection and, where applicable, of the fact that the assessment of creditworthiness is based on automated processing of data.
Amendment 629 #
Proposal for a directive
Article 18 – paragraph 9 a (new)
Article 18 – paragraph 9 a (new)
9 a. A Member State may derogate from Article 18 in respect of credit agreements involving a total amount of credit of less than EUR 200, credit agreements where the credit is granted free of interest and without any other charges and credit agreements under the terms of which the credit has to be repaid within three months. Member States shall notify the Commission of the use of such derogation. The Commission shall publish a list of those derogations.
Amendment 636 #
Proposal for a directive
Article 19 – paragraph 2
Article 19 – paragraph 2
2. Paragraph 1 shall apply both to public and private credit databases.
Amendment 641 #
4 a. Not later than 12 months after entering into force of this Directive, the Commission shall produce guidelines and publish best practices as regards provision of database information to creditors.
Amendment 674 #
Proposal for a directive
Article 26 – paragraph 1 – subparagraph 1 – point b
Article 26 – paragraph 1 – subparagraph 1 – point b
(b) the day on which the consumer receives the contractual terms and conditions and informationinformation on the right of withdrawal in accordance with Articles 20 and 21, if that day is later than the date referred to in point (a) of this subparagraph1.1 p).
Amendment 678 #
Proposal for a directive
Article 26 – paragraph 1 – subparagraph 2
Article 26 – paragraph 1 – subparagraph 2
The deadline referred to in the first subparagraph shall be deemed to have been met if the notification referred to in paragraph 3, point (a), is dispatched by the consumer to the creditor of to the provider of crowdfunding credit services before that deadline expires. If the creditor or the provider of crowdfunding credit services has not provided the consumer with the information on the right of withdrawal in accordance with Article 21.1 p), the withdrawal period shall expire 6 months after the day of the conclusion of the credit agreement or of the agreement for the provision of crowdfunding credit services.
Amendment 689 #
Proposal for a directive
Article 29 – paragraph 1
Article 29 – paragraph 1
1. Member States shall ensure that the consumer is at any time entitled to early repayment. In such cases, the consumer shall be entitled to a reduction in the total cost of the credit, consisting of the interest and the costs for the remaining duration of the contract. When calculating that reduction, all the costs imposed on the consumer by the creditor shall be taken into considerationexcept for the costs corresponding to services effectively provided to the consumer or to costs effectively incurred by the creditor, as well as third party costs shall be taken into consideration. The upfront costs should be identified in the credit contract. Costs that remunerate credit intermediaries activities or costs that do not remunerate creditor’s services as well as taxes are excluded from the calculation of the reduction of the total cost of credit. As regards the method of reimbursement the amortised cost criterion (interest curve) for the calculation of the proportional reduction of costs should be used unless otherwise regulated in the contract.
Amendment 696 #
Proposal for a directive
Article 29 – paragraph 4
Article 29 – paragraph 4
Amendment 705 #
Proposal for a directive
Article 31
Article 31
Amendment 743 #
Proposal for a directive
Article 34 – paragraph 2
Article 34 – paragraph 2
2. The Commission shall assess and publish a report on the financial education available toNot later than 12 months from the date the Directive is adopted, the Commission shall adopt delegating act with measurable result indicators, enabling Member States to benchmark themselves with other countries and assess and publish a report on progress in financial literacy of consumers in the Member States and identify examples of best practices which could be further developed in order to increase the financial awareness of consumers.
Amendment 765 #
Proposal for a directive
Article 37 – paragraph 1 a (new)
Article 37 – paragraph 1 a (new)
An entity admitted, registered or authorised pursuant to previous paragraph prior to the entry into force of this Directive is considered admitted, registered or authorised for providing services according to this Directive for which it was authorised or registered according to national law.
Amendment 767 #
Proposal for a directive
Article 37 – paragraph 1 b (new)
Article 37 – paragraph 1 b (new)
Where an creditor and credit intermediary admitted, registered or authorised pursuant to national law applicable to services that are included in the scope of this Directive prior to the entry into force of this Directive, applies for admission, authorisation or registration as service provider under this Directive, the Member State shall not require that entity to provide information or documents which it has already submitted when applying for admission, authorisation or registration pursuant to national law, provided that such information or documents remain up-to-date and are accessible to the competent authority.
Amendment 769 #
Proposal for a directive
Article 37 – paragraph 1 c (new)
Article 37 – paragraph 1 c (new)
Creditors and credit intermediaries may continue in accordance with the applicable national law to provide services that are included within the scope of this Directive until 30 June 2024 or until they are granted admission, authorisation or registration to provide services according to this Directive, whichever is sooner. Until 30 June 2024, Member States may have in place simplified admission, authorisation or registration procedures for creditors, credit intermediaries and crowdfunding service providers that, at the time of entry into force of this Directive, are authorised under national law to provide crowdfunding services.
Amendment 785 #
Proposal for a directive
Article 44 – paragraph 1
Article 44 – paragraph 1
1. Member States shall lay down the rules on penalties applicable to infringements of the national provisions adopted pursuant to this Directive and shall take all measures necessary to ensure that they are implemented. The penalties provided for shall be effective, proportionate and dissuasive. Member States shall notify those rules and of those measures to the Commission by [OP: please insert date - sixtwenty four months from the transposition deadline] and shall notify it, without delay, of any subsequent amendment affecting them.
Amendment 786 #
Proposal for a directive
Article 44 – paragraph 2
Article 44 – paragraph 2
2. Member States shall ensure that when penalties are to be imposed in accordance with Article 21 of Regulation (EU) 2017/2394, they include the possibility either to impose fines through administrative procedures or to initiate legal proceedings for the imposition of fines, or both, the maximum amount of such fines being at least 1% and not more than 4% of the creditor, the credit intermediary or the provider of crowdfunding credit services’ annual turnover in all Member States concerned by the coordinated enforcement action. Member states shall proportionally reduce the fine in case when the turnover of the enterprise comprises not only of providing consumer credits, but also of other activities.
Amendment 792 #
Proposal for a directive
Article 46 – paragraph 1
Article 46 – paragraph 1
1. The Commission shall undertake, every five years and for the first time five years from the date of application, an evaluation of this Directive. The evaluation shall include an assessment of a) the thresholds laid down in Article 2(2), point c, and in Part II of Annex IV, and ofb) the percentages used to calculate the compensation payable in the event of early repayment as referred to in Article 29, in the light of economic trends in the Union and the situation in the market concerned. ; c) the functioning of the market for consumer credit in the Union, including market development and trends, taking into account supervisory experience, the number of providers and their market share, as well as the impact of this Directive in relation to other relevant Union law; d) whether the requirements set out in Article 10, Article 11 and Article 18 remain appropriate to pursue the objectives of this Directive; e) the impact of this Regulation on the proper functioning of the Union’s internal market for consumer credit; f) the implementation of technological innovation in the lending sector, including the application of new innovative business models and technologies including electronic identification; g) whether the information to be included in the credit agreement set out in Article 21 remain appropriate to pursue the objectives of this Directive; h) the effects that national laws, regulations and administrative provisions governing marketing communications have on the freedom to provide services, competition and investor protection; i) the total number and the market share of creditors and crowdfunding providers registered under this Directive, classified by small, medium-sized and large enterprises; j) volumes and trends of the cross-border provision of credits per Member State; k) the share of the credits provided under this Directive in the global credit market and the Union financial market; l) the costs of complying with this Directive for creditors and crowdfunding service providers as a percentage of operational costs; m) the volume of credits withdrawn by consumers within the withdrawal period, its share of the total volume of credits, classified by a type and size of the credit, including credits under EUR 200, and, based on those data, assess whether the duration and the nature of the withdrawal period set out in Article 26 is appropriate and does not harm the efficiency of the capital raising process or investor protection; n) the number and amount of penalties imposed according to or in relation with this Directive classified by Member States; o) types and trends of fraudulent or other undesirable behaviour of creditors, crowdfunding service providers, third parties and consumers occurring in relation to this Directive.
Amendment 797 #
Proposal for a directive
Article 47 – paragraph 1
Article 47 – paragraph 1
Directive 2008/48/EC is repealed with effect from [OP: please insert date - sixtwenty four months from the transposition deadline]. However, as regards relations, within the scope of this Directive, between consumers and creditors or credit intermediaries or providers of crowdfunding credit services who qualify as micro, small and medium undertakings as referred to in Article 3 of Directive 2013/34/EU of the European Parliament and of the Council45 , Directive 2008/48/EC shall continue to apply until [OP: please insert date - 1830 months from the transposition deadline]. _________________ 45 Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19).
Amendment 798 #
Proposal for a directive
Article 47 – paragraph 2
Article 47 – paragraph 2
Directive 2008/48/EC shall also continue to apply to credit agreements existing on [OP: please insert date - sixtwenty four months from the transposition deadline] until [their termination].
Amendment 799 #
Proposal for a directive
Article 47 – paragraph 3
Article 47 – paragraph 3
However, Articles 23 and 24, Article 25(1), second sentence, Article 25(2) and Articles 28 and 39 of this Directive shall apply to all open-end credit agreements existing on [OP: please insert date - sixtwenty four months from the transposition deadline].
Amendment 800 #
Proposal for a directive
Article 48 – paragraph 1 – introductory part
Article 48 – paragraph 1 – introductory part
1. Member States shall adopt and publish, by [OP: please insert date - 24 months from the date the Directive is adopted] at the latest, the laws, regulations and administrative provisions necessary to comply with this Directive. They shall forthwith communicate to the Commission the text of those provisions. They shall apply those measures from [OP: please insert date - sixtwenty four months from the transposition deadline].
Amendment 801 #
Proposal for a directive
Article 48 – paragraph 1 – subparagraph 1
Article 48 – paragraph 1 – subparagraph 1
Amendment 804 #
Proposal for a directive
Annex II
Annex II