Activities of Antolín SÁNCHEZ PRESEDO related to 2011/0062(COD)
Plenary speeches (3)
Credit agreements relating to residential property (debate)
Credit agreements relating to residential property (debate)
Credit agreements relating to residential property (A7-0202/2012 - Antolín Sánchez Presedo) (vote)
Reports (1)
REPORT on the proposal for a directive of the European Parliament and of the Council on credit agreements relating to residential property PDF (1 MB) DOC (1 MB)
Amendments (33)
Amendment 204 #
Proposal for a directive
Recital 14 a (new)
Recital 14 a (new)
(14a) Cross-selling practices are a common strategy for retail financial service providers throughout the Union. They are an integral part of creditors’ commercial strategies and can help limit creditors’ risks and reduce costs. However, certain forms of cross-selling practices, namely tying practices where two or more financial services are sold together in a package and at least one of those services is not available separately, can distort competition and negatively affect customer mobility and consumers’ ability to make informed choices. The use of such practices should be restricted in order to promote competition and consumer choice. Bundling, where two or more financial services are sold together in a package, but each of the services can also be purchased separately, is allowed under this Directive. However, Member States should monitor retail financial services markets closely to ensure that bundling does not excessively distort competition on the market and choice for consumers.
Amendment 206 #
Proposal for a directive
Recital 14 b (new)
Recital 14 b (new)
(14b) Flexibility during the life of the contract can help both creditors and consumers to manage debt responsibly, in line with good practice identified by the Financial Stability Board. It is therefore appropriate to ensure that consumers who wish to move home can retain their credit agreement where they can provide appropriate collateral from a new property, that consumers as well as creditors have the possibility to transfer a credit agreement to a third party creditor where that third party makes a binding offer which improves on the terms of the existing credit agreement, and to provide for payment flexibility to enable consumers to overpay when they can and hence build up a reserve of funds which can help them in periods where their income and hence ability to repay the loan might be lower, to the benefit of creditors as well as consumers.
Amendment 226 #
Proposal for a directive
Recital 24
Recital 24
(24) An assessment of creditworthiness should take into consideration all necessary factors that could influence a consumer’s ability to repay over the lifetime of the loan including, but not limited to, the consumer’s income, regular expenditures, credit score, past credit history, ability to handle interest rate adjustments, and other existing credit commitments. AddiTo that end, they should be allowed to use informational provisions may be necessary to further elaborateded by the consumer not only during the preparation onf the different elements that may be taken into consideration in a creditworthiness assessmentcredit agreement in question, but also during a long-standing commercial relationship. Member States may issue additional guidance on the method and criteria to assess a consumer’s creditworthiness, for example by setting limits on loan-to-value or loan-to-income ratios in addition to the reference levels for such ratios which should be established to identify when stricter prudential or other supervisory measures are warranted.
Amendment 238 #
Proposal for a directive
Recital 29
Recital 29
(29) Where a decision to reject an application for credit is made, the creditor should explain at high level the reason for the rejection but should not be required to divulge the assessment methodology required to reach the decision. Where a decision to reject an application for credit is based on data obtained through the consultation of a database or the lack of data therein, the creditor should inform the consumer thereof, of the name of the database consulted and of any other elements required by Directive 95/46/EC so as to enable the consumer to exercise his right to access and, where necessary, rectify, erase or block personal data concerning him and processed therein. Where a decision to reject an application for credit is based on an automated decision or on systematic methods such as credit scoring systems, the creditor should inform the consumer thereof and explain the logic involved in the decision and of the arrangements enabling the consumer to request the automated decision to be reviewed manually. However, the creditor should not be required to give such information when to do so would be prohibited by other Union legislation such as legislation on money laundering or the financing of terrorism. Neither should such information be provided where to do so would be contrary to the objectives of public policy or public security such as the prevention, investigation, detection or prosecution of criminal offences.
Amendment 297 #
Proposal for a directive
Article 2 – paragraph 2 – point a
Article 2 – paragraph 2 – point a
(a) Credit agreements which will eventually be repaid from the sale proceeds of an immovable property. ere the creditor advances a lump sum of money or makes periodic payments or other forms of credit disbursement to the consumer who has an existing proprietary right in residential immovable property in return for a sum deriving from the future sale of the residential immovable property or a right in the residential immovable property to which the credit agreement relates and will not seek repayment of the credit until the occurrence of one or more specified life events of the consumer, unless a breach of contractual obligations that allows the creditor to terminate the credit agreement occurs.
Amendment 315 #
Proposal for a directive
Article 3 – paragraph 1 – point d a (new)
Article 3 – paragraph 1 – point d a (new)
(da) ‘Tying practice’ means the selling of an ancillary service with the credit agreement in a package where the credit agreement is not made available to the consumer separately.
Amendment 322 #
Proposal for a directive
Article 3 – paragraph 1 – point i
Article 3 – paragraph 1 – point i
(i) ‘Non-credit institution’ means any natural or legal person who grants or promises to grant credit within the meaning of Article 2 in the course of his trade, business or profession andcreditor that is not a credit institution.
Amendment 335 #
Proposal for a directive
Article 3 – paragraph 1 – point o
Article 3 – paragraph 1 – point o
(o) ‘Creditworthiness assessment’ means the evaluation of a consumer’s ability to meet his debt obligationsthe prospect for the debt obligations resulting from the credit agreement to be repaid.
Amendment 342 #
Proposal for a directive
Article 3 – paragraph 1 – point r a (new)
Article 3 – paragraph 1 – point r a (new)
(ra) ‘Appraisal’ means the valuation of residential immovable property or the land on which such residential immovable property is or could be situated.
Amendment 344 #
Proposal for a directive
Article 3 – paragraph 1 – point r b (new)
Article 3 – paragraph 1 – point r b (new)
(rb) ‘Appraiser’ means a natural or legal person who, in the course of his trade, business or profession, makes an appraisal.
Amendment 345 #
Proposal for a directive
Article 3 – paragraph 1 – point r c (new)
Article 3 – paragraph 1 – point r c (new)
(rc) ‘Deposit account’ means a ‘Payment account’ as defined in Article 4(14) of Directive 2007/64 or an account through which a credit institution authorised in accordance with Directive 2006/48/EC takes deposits or other repayable funds from the public.
Amendment 365 #
Proposal for a directive
Article 5 – paragraph 2 a (new)
Article 5 – paragraph 2 a (new)
Amendment 374 #
Proposal for a directive
Article 6 – paragraph 1 – point a
Article 6 – paragraph 1 – point a
(a) The staff of creditors and credit intermediaries possess an appropriate level of knowledge and competence in relation to the offering or granting of credit agreements within the meaning of Article 2, or the activity of credit intermediation as defined in Article 3(e). W, and in relation to any associated ancillary service, appropriate to the function they are performing and the relevant market. In particular, where the conclusion of a credit agreement includes an ancillary service related to it, in particular insurance or investment services, they shall also possess appropriate knowledge and competence in relation to that ancillary service in order to satisfy the requirements set out in Article 19 of Directive 2004/39/EC and Article 4 of Directive 2002/92/EC.
Amendment 445 #
Proposal for a directive
Article 9 – paragraph 1 – subparagraph 2 – point j
Article 9 – paragraph 1 – subparagraph 2 – point j
(j) whether a valuation of the property is necessary and, where applicable, by whom it should be carried outif applicable, information on the measures required from the consumer regarding the valuation of the property and any related cost to the consumer;
Amendment 461 #
Proposal for a directive
Article 9 – paragraph 2 – subparagraph 1
Article 9 – paragraph 2 – subparagraph 1
Member States shall ensure that the creditor and, where applicable, the credit intermediary, without undue delay after the consumer has given the necessary information on his needs, financial situation and preferences in accordance with Article 14, provides the consumer for free with the personalised information needed to compare the credits available on the market, assess their implications and take an informed decision on whether to conclude a credit agreement in good time after the consumer has given the necessary information on his needs, financial situation and preferences in accordance with Article 14 and before the consumer is bound by any credit agreement or offer. Such information, on paper or on another durable medium, shall be provided by means of the European Standardised Information Sheet (‘ESIS’), as set out in Annex II.
Amendment 473 #
Proposal for a directive
Article 9 – paragraph 2 – subparagraph 2
Article 9 – paragraph 2 – subparagraph 2
Member States shall ensure that when an offer binding on the creditoffer is provided to the consumer, it shall be accompanied by an ESIS. In such circumstances, Member States shall ensure that the credit agreement cannot be concluded until the consumer has had sufficient time if none has been provided to the consumer previously or the characteristics of the offer are different from those contained in the ESIS previously provided, and that the credit agreement cannot be concluded until the consumer has been provided in a durable medium with an offer binding on the creditor and has a sufficient period of reflection which is no less than 14 working days to compare it with other offers, obtain third party advice if necessary and assess theirits implications and take an informed decision on whether to accept anthe offer, regardless of the means of conclusion of the contract. Where a Member State allows the credit agreement to be concluded before the end of the reflection period it shall provide for a right of withdrawal from the credit agreement for at least the remainder of the reflection period.
Amendment 484 #
Proposal for a directive
Article 9 – paragraph 4 a (new)
Article 9 – paragraph 4 a (new)
4a. The provisions of Article 3(3)b and Article 5(2) of Directive 2002/65/EC shall not apply to credit agreements.
Amendment 487 #
Proposal for a directive
Article 9 – paragraph 5
Article 9 – paragraph 5
5. Member States shall ensure that the creditor or credit intermediary, upon request of the consumer, provides the consumer with a copy of the draft credit agreement in a durable medium free of charge. This provision shall not apply in cases where the creditor is unwilling, at the time of the request, to proceed to the conclusion of the credit agreement with the consumer.
Amendment 490 #
Proposal for a directive
Article 9 a (new)
Article 9 a (new)
Amendment 492 #
Proposal for a directive
Article 9 b (new)
Article 9 b (new)
Article 9b Supply and formalization of the credit agreement In relation to supply and formalization of a credit agreement, the appraised or appraisal company, notaries, legal advisers or any other provider will be chosen by mutual agreement of the parties.
Amendment 502 #
Proposal for a directive
Article 10 – paragraph 2
Article 10 – paragraph 2
2. Credit intermediaries who are not tied shall, at the consumer’s request, provide information on the variation in levels of commission payable by the different creditors providing the credit agreements being offered to the consumer. The consumer shall be informed that he has the right to request such information.
Amendment 531 #
Proposal for a directive
Article 12 – paragraph 2 – subparagraph 2
Article 12 – paragraph 2 – subparagraph 2
Where the opening of an payment account is obligatory in order to obtain the credit, the costs of maintaining such an account, the costs of using a means of payment for both payment transactions and drawdowns on that account, and other costs relating to payment transactions shall be included in the total cost of crediloan cost to the consumer, unless the costs have been clearly and separately shown in the credit agreement or in any other agreement concluded with the consumer.
Amendment 532 #
Proposal for a directive
Article 12 – paragraph 2 – subparagraph 2 a (new)
Article 12 – paragraph 2 – subparagraph 2 a (new)
Where a credit agreement allows for a repayment structure where the accrued interest is not fully paid, and the amount of the additional interest due is added to the total loan amount, this shall be included in the total loan amount used in the calculation.
Amendment 535 #
Proposal for a directive
Article 12 – paragraph 4
Article 12 – paragraph 4
4. In the case of credit agreements containing clauses allowing variations in the borrowing rate and, where applicable, in the charges contained in the annual percentage rate of charge but unquantifiable at the time of calculation, the annual percentage rate of charge shall be calculated on the assumption that the borrowing rate and other charges will be calculated at the level seimplied by the credit agreement at the signature of the contract.
Amendment 562 #
Proposal for a directive
Article 14 – paragraph 1 a (new)
Article 14 – paragraph 1 a (new)
1 a. Member States shall ensure that the assessment of creditworthiness shall be applied without discrimination to loans relating to residential immovable property located within their territory and shall include at least the following criteria: (a) the assessment shall not allow any reliance on an increase in the value of the property as a means of repaying the loan; (b) the assessment shall be made on the basis of the consumer’s current net disposable income, taking account of social benefits, debts and other financial commitments as well as foreseeable changes due to retirement during the term of the loan; where the assessment relates to a credit agreement under which the consumer will not occupy the property and which allows the consumer to rent the property to a third party, Member States may allow creditors to take account of reasonable projected rental income in carrying out the creditworthiness assessment; (c) the assessment shall be based on a realistic assessment of the repayment amount which shall be sufficient to repay the debt by final maturity at the fully indexed rate assuming a fully amortising repayment schedule and of the repayment structure which shall include foreseeable changes arising from the structure of the product, an allowance for increases in adjustable rates where such increases are permitted under the credit agreement, and where applicable an allowance for the impact of negative amortization on subsequent payments.
Amendment 580 #
Proposal for a directive
Article 14 – paragraph 2 – point b
Article 14 – paragraph 2 – point b
(b) Where the credit application is rejected on the basis of a negative creditworthiness assessment for the consumer, the creditor informs the consumer immediately and withoutfree of charge of the main reasons for such rejection.
Amendment 622 #
Proposal for a directive
Article 16 – paragraph 1 a (new)
Article 16 – paragraph 1 a (new)
1 a. Member States shall ensure that adequate mechanisms to compensate consumers are in place if an adverse decision not to grant a loan was taken by a credit institution on the basis of an inaccurate credit report provided by a credit register.
Amendment 628 #
Proposal for a directive
Article 16 – paragraph 2 – subparagraph 1
Article 16 – paragraph 2 – subparagraph 1
Amendment 680 #
Proposal for a directive
Article 18 – paragraph 2 – subparagraph 2
Article 18 – paragraph 2 – subparagraph 2
Amendment 690 #
Proposal for a directive
Article 18 a (new)
Article 18 a (new)
Article 18a Conversion of foreign currency loans 1. Member States shall ensure that where a credit agreement relates to a loan in a currency other than that in which the consumer holds the majority of assets or receives the majority of income from which the loan is to be repaid, the consumer shall have the right to convert the loan into the currency of the consumer’s assets or income within a reasonable period. 2. Member States shall provide that the creditor should be entitled to obtain fair and objectively justified compensation for potential costs directly linked to the exercise of the right but shall not allow creditors to impose a penalty arising from the exercise of the right.
Amendment 695 #
Proposal for a directive
Article 18 b (new)
Article 18 b (new)
Article 18b Payment flexibility Member States shall ensure that creditors allow consumers to make payments which exceed the amount required by the amortisation structure of the loan contained in the credit agreement without penalty and thereby have the right to reduce or temporarily cease the payments due under the amortization structure up to the value by which they have previously exceeded the required amount.
Amendment 703 #
Proposal for a directive
Article 18 c (new)
Article 18 c (new)
Article 18c Switching of borrower 1. Where Member States allow the transfer from a borrower to a consumer of a credit agreement which would be within the scope of Article 2(1)if it were transferred to the consumer in parallel to the sale of a property on condition that the creditor has satisfied the requirements of this directive and in particular has carried out a creditworthiness assessment of the consumer in accordance with Article 14 and has not concluded that there is a negative prospect for his ability to repay and has provided the consumer with a binding offer prior to the transfer of the credit agreement. 2. Member States shall prohibit developers from tying the sale of a projected or existing property by making it conditional upon the transfer to the consumer of a credit agreement which would be within the scope of Article 2(1) if it were transferred to the consumer.
Amendment 716 #
Proposal for a directive
Article -19 a (new)
Article -19 a (new)
Article -19a Special prudential requirements 1. Member States shall ensure that the local competent authorities formulate and publish binding standards for different categories of credit agreements which constitute special risk credit agreements. 2. Those binding standards shall include at least: (a) additional information and risk warnings to be included in pre- contractual information relating to special risk products; (b) special prudential measures as described in Article -19(2). 3. Member States shall ensure that the following credit agreements are always deemed to be special risk credit agreements: (a) credit agreements where the loan is granted in a currency other than that in which the consumer holds the majority of assets or receives the majority of income; (b) credit agreements which allow for significant variation in interest payments during the term of the agreement; (c) credit agreements where it is agreed between the parties that the return of the collateral will be sufficient to repay the loan. 4. Member States shall ensure that local competent authorities have powers to specify additional features which shall be deemed to constitute special risk credit agreements within their territory.