Activities of Sirpa PIETIKÄINEN related to 2021/0171(COD)
Shadow opinions (1)
OPINION on the proposal for a directive of the European Parliament and of the Council on consumer credits
Amendments (33)
Amendment 99 #
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, as well as a consumer’s ability to afford the credit. 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 114 #
Proposal for a directive
Recital 54
Recital 54
(54) In order to ensure full transparency, the consumer should be provided with information concerning the borrowing rate, both at a pre-contractual stage and when the credit agreement or the agreement for the provision of crowdfunding credit services is concluded. During the contractual relationship, the consumer should further be informed of changes to the variable borrowing rate and changes to the payments caused thereby at least seven days in advance. This is without prejudice to provisions of national law not related to consumer information which lay down conditions for, or prescribe the consequences of, changes, other than changes concerning payments, in borrowing rates and other economic conditions governing the credit, for instance rules providing that the creditor or the provider of crowdfunding credit services may change the borrowing rate only where there is a valid reason for such change or that the consumer may terminate the contract should there be a change in the borrowing rate or in other specific economic condition concerning the credit.
Amendment 117 #
Proposal for a directive
Recital 58
Recital 58
(58) In some cases, national law already provides that funds cannot be made available to the consumer before the expiry of a specific deadline. In those cases, consumers may wish to ensure that they receive the goods or services purchased early. Therefore, in the case of linked credit agreements, Member States should have the possibility to exceptionally provide that, if the consumer explicitly wishes early receipt of the purchased goods or services, the deadline for the exercise of the right of withdrawal could be reduced so that it is the same as the deadline before which funds cannot be made available. In order to ensure the effectiveness of the right of withdrawal, goods or services which form part of a linked credit agreement should not be delivered before a cooling-off period of 48 hours after the conclusion of the contract.
Amendment 121 #
Proposal for a directive
Recital 72
Recital 72
(72) Consumers facing difficulties to meet their financial commitments stand to benefit from specialised help on managing their debts. The objective of debt advisory services is to help consumers facing financial problems and guide them to repay, as far as possible, their outstanding debts, while maintaining a decent level of life and preserving their dignity. This personalised and independent assistance provided by professional operators which are not creditors, credit intermediaries, providers of crowdfunding credit services or credit servicers, may include legal counselling, money and debt management as well as social and psychological assistance. Member States should ensure that qualitative debt advisory services provided by independent professional operators are made available, directly or indirectly, to consumers, and that where possible, free of charge, and that consumers facing difficulties to repay their debts are referred to debt advisory services before that enforcement proceedings are initiated. Member States remain free to maintain or introduce specific requirements for such services.
Amendment 122 #
Proposal for a directive
Recital 76
Recital 76
(76) Assignment of the creditor's rights under a credit agreement or an agreement for the provision of crowdfunding credit services should not have the effect of placing the consumer in a less favourable position. Creditors should not be able to transfer credit contracts which can no longer be enforced or have no proven legal basis. The consumer should also be properly informed via a standard notification form no later than 48 hours after the conclusion of the contract formalising the assignment to a third party. The consumer should also be properly informed when the credit agreement or the agreement for the provision of crowdfunding credit services is assigned to a third party. However, where the initial creditor, in agreement with the assignee, continues to service the credit vis-à-vis the consumer, the consumer has no significant interest in being informed of the assignment. Therefore, a requirement at Union level that the consumer be informed of the assignment in such cases would be excessive.
Amendment 124 #
Proposal for a directive
Recital 81
Recital 81
(81) Current national rules on penalties differ significantly across the Union. In particular, not all Member States ensure that effective, proportionate and dissuasive fines can be imposed on traders responsible for widespread infringements or widespread infringements with a Union dimension. To ensure that Member States’ authorities can impose effective, proportionate and dissuasive penalties in relation to widespread infringements and to widespread infringements with a Union dimension that are subject to coordinated investigation and enforcement measures in accordance with Regulation (EU) 2017/2394 of the European Parliament and of the Council36 , fines should be introduced as an element of penalties for such infringements. In order to ensure that the fines have a deterrent effect, Member States should set in their national law the maximum fine for such infringements at a level that is at least 4 % of the creditor, credit intermediary or provider of crowdfunding credit services’ annual turnover in the Member State or Member States concerned. In certain cases, those traders can also be a group of companies. __________________ 36 Regulation (EU) 2017/2394 of the European Parliament and of the Council of 12 December 2017 on cooperation between national authorities responsible for the enforcement of consumer protection laws and repealing Regulation (EC) No 2006/2004 (OJ L 345, 27.12.2017, p. 1).
Amendment 135 #
Proposal for a directive
Article 2 – paragraph 2 – point j a (new)
Article 2 – paragraph 2 – point j a (new)
(ja) credit agreements in the form of an overdraft facility and where the credit has to be repaid within one month
Amendment 200 #
Proposal for a directive
Article 10 – paragraph 2
Article 10 – paragraph 2
2. The pre-contractual information referred to in paragraph 1 shall be provided on paper or on another durable mediumdurable medium (digitally by default, paper on request of the consumer or creditor) by means of the Standard European Consumer Credit Information form set out in Annex I. All the information provided in the form shall be equally prominent. The creditor shall be deemed to have fulfilled the information requirements in this paragraph and in Article 3, paragraphs (1) and (2) of Directive 2002/65/EC if he or she has supplied the Standard European Consumer Credit Information.
Amendment 204 #
Proposal for a directive
Article 10 – paragraph 3 – subparagraph 1 – point q
Article 10 – paragraph 3 – subparagraph 1 – point q
(q) the right of early repayment, and, where applicable, information concerning the creditor's right to compensation and the way in which that compensation will be determined in accordance with Article 29;
Amendment 260 #
Proposal for a directive
Article 16 – paragraph 4 – subparagraph 1
Article 16 – paragraph 4 – subparagraph 1
4. Member States mayshall prohibit the use of the terms ‘advice’ and ‘advisor’ or similar terms when the advisory services are being marketed and provided to consumers by creditors or, where applicable, credit intermediaries or providers of crowdfunding credit services.
Amendment 264 #
Proposal for a directive
Article 16 – paragraph 4 – subparagraph 2 – introductory part
Article 16 – paragraph 4 – subparagraph 2 – introductory part
Amendment 265 #
Proposal for a directive
Article 16 – paragraph 4 – subparagraph 2 – point a
Article 16 – paragraph 4 – subparagraph 2 – point a
(a) creditors and, where applicable, credit intermediaries or providers of crowdfunding credit servic intermediaries shall consider a sufficiently large number of credit agreements or crowdfunding credit services available on the market;
Amendment 269 #
Proposal for a directive
Article 16 – paragraph 4 – subparagraph 3
Article 16 – paragraph 4 – subparagraph 3
Amendment 272 #
Proposal for a directive
Article 16 – paragraph 4 – subparagraph 4
Article 16 – paragraph 4 – subparagraph 4
Member States may impose more stringent requirements for the use of the terms ‘independent advice’ or ‘independent advisor’provision of advisory services by creditors and, where applicable, credit intermediaries or providers of crowdfunding credit services.
Amendment 280 #
Proposal for a directive
Article 17 – paragraph 1
Article 17 – paragraph 1
Member States shall prohibit any offer or sale of credit to consumers, without their prior request and explicit agreement.
Amendment 289 #
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 thoroughhas made a positive assessment of the consumer’s creditworthiness. That assessment shall 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 services.
Amendment 291 #
Proposal for a directive
Article 18 – paragraph 1 – subparagraph 1 a (new)
Article 18 – paragraph 1 – subparagraph 1 a (new)
Member States shall ensure that the creditworthiness assessment and corresponding re-payment plans are tailored to the borrower’s specific profile and repayment capacity, including in the case of the most vulnerable consumers. In particular, where a creditor or a provider of crowdfunding credit services fulfils a social purpose as required by national law, the specificities of the loan such as its nature, maturity and interest rate, as well as the re-payment plan should fit the borrower’s specific profile, including their needs, income, savings, personal and family situation.
Amendment 339 #
Proposal for a directive
Article 21 – paragraph 1 – subparagraph 1 – point v a (new)
Article 21 – paragraph 1 – subparagraph 1 – point v a (new)
(va) the relevant contact details of debt- advisory services and a recommendation for the consumer to contact such services in case of re-payment difficulties.
Amendment 345 #
Proposal for a directive
Article 23 – paragraph 1 – subparagraph 1
Article 23 – paragraph 1 – subparagraph 1
1. Member States shall require that the creditor or the provider of crowdfunding credit services inform the consumer of any change in the borrowing rate, on paper or another durable medium, chosen by the consumer, at least seven days before the change enters into force.
Amendment 349 #
Proposal for a directive
Article 24 – paragraph 2 – subparagraph 1
Article 24 – paragraph 2 – subparagraph 1
2. Where a credit has been granted in the form of an overdraft facility, Member States shall require that the creditor informs the consumer, on paper or another durable medium chosen by the consumer, of increases in the borrowing rate or in any charges payable, at least seven days before the change in question enters into force.
Amendment 366 #
Proposal for a directive
Article 26 – paragraph 7 – subparagraph 1 a (new)
Article 26 – paragraph 7 – subparagraph 1 a (new)
Member States shall ensure that goods or services which form part of a linked credit agreement shall not be delivered before a cooling-off period of 48 hours after the conclusion of the contract.
Amendment 369 #
Proposal for a directive
Article 27 – paragraph 1
Article 27 – paragraph 1
1. Member States shall ensure that the cooling-off period referred to in Article 26(7) is respected and that a consumer who has exercised the right of withdrawal under Article 26 or based on Union law, concerning a contract for the supply of goods or services she or he shall no longer be bound by a linked credit agreement.
Amendment 406 #
Proposal for a directive
Article 32 – paragraph 1 – point e a (new)
Article 32 – paragraph 1 – point e a (new)
(ea) promoting the sale of goods or services, covered by a linked credit agreement
Amendment 408 #
Proposal for a directive
Article 32 – paragraph 2 subparagraph 1 a (new)
Article 32 – paragraph 2 subparagraph 1 a (new)
Member States shall as a general rule, prohibit remuneration policies contingent upon the interest rate or cost of the credit, or the type of credit product subscribed.
Amendment 411 #
Proposal for a directive
Article 32 – paragraph 3 – point a
Article 32 – paragraph 3 – point a
(a) the remuneration policy is consistent with and promotes sound and effective risk management and does not encourage risk-taking that exceeds the level of tolerated risk of the creditor;excessive risk-taking.
Amendment 413 #
Proposal for a directive
Article 32 – paragraph 4
Article 32 – paragraph 4
4. Member States shall ensure that where creditors, credit intermediaries or providers of crowdfunding credit services provide advisory services the remuneration structure of the staff involved does not prejudice their ability to act in the consumer’s best interest and is not contingent on sales targets. In order to achieve that goal, Member States may also ban commissions or any other specific forms of compensation, monetary or not, contingent on the number or proportion of or accepted applications for credit paid by the creditor to the credit intermediary.
Amendment 419 #
Proposal for a directive
Article 32 a (new)
Article 32 a (new)
Article 32a Product governance and oversight 1. In accordance with the EBA Guidelines on product oversight and governance arrangements for retail banking products, this Directive introduces rules on product oversight and governance for credit manufacturers and distributors. When designing consumer credit products, creditors should take consumer interests, objectives and characteristics into account; identify the target market; test products with consumers before launching them on the market; monitor products once they are brought to market and take timely corrective measures to prevent consumer detriment. Credit distributors should provide credit only to the relevant target market, with the aim to minimise defaults and arrears. Notably, where providers of point-of-sale credit offer revolving credit, they should offer consumers a choice between instalment and revolving credit. Credit distributors should assess the suitability of annex products, such as insurance, to the consumer’s needs and expectations. 2. When designing consumer credit products, creditors or providers of crowdfunding credit services should take consumer interests, objectives and characteristics into account. Creditors or providers of crowdfunding credit services shall maintain, operate, and regularly review a product oversight and governance policy, including a process for the approval of each credit product. The product approval process shall specify an identified target market for each product, ensure that all relevant risks to such identified target market are assessed and that the intended distribution strategy is consistent with the identified target market. Creditors or providers of crowdfunding credit services shall take reasonable steps to ensure that the consumer credit product is only distributed to the identified target market. Member States shall ensure that creditors or providers of crowdfunding credit services regularly review the products they offer, taking into account any event that could materially affect the potential risk to the identified target market, to assess whether the product remains consistent with the needs of the identified target market and whether the intended distribution strategy remains appropriate. 3. Creditors or providers of crowdfunding credit services who act as product manufacturers shall make available to creditors, providers of crowdfunding credit services or credit intermediaries who act as distributors, all appropriate information on the consumer credit product and the product approval process, including the identified target market of the consumer credit product. Where a creditor, credit intermediary, or provider of crowdfunding credit services, advises on, or proposes, consumer credit products which it does not manufacture, it shall have in place adequate arrangements to obtain relevant information on the product approval process and on the characteristics of the target market of each consumer credit product it distributes. Member States shall ensure that products are only distributed to such relevant target market.
Amendment 422 #
Proposal for a directive
Article 34 – paragraph 1 – subparagraph 1
Article 34 – paragraph 1 – subparagraph 1
1. Member States shall promote measures that support the education of consumers in relation to responsible borrowing and debt management, in particular in relation to consumer credit agreements, and general knowledge about budget management. Clear and general information on the credit granting process shall be provided to consumers in order to guide them, in particular those who take out a consumer credit for the first time, and especially on digital tools. These measures shall be taken in cooperation with consumer organisations, namely those who provide debt support services.
Amendment 441 #
Proposal for a directive
Article 36 – paragraph 1
Article 36 – paragraph 1
Member States shall ensure that qualitative debt advisory services are made available to consumers, free of charge, and that adequate support is provided to debt- advice structures, including when provided by consumer associations.
Amendment 445 #
Proposal for a directive
Article 36 – paragraph 1 a (new)
Article 36 – paragraph 1 a (new)
Member States shall ensure that creditors systematically refer consumers experiencing or likely to experience financial difficulties, to the nearest debt- advice service available in their area.
Amendment 447 #
Proposal for a directive
Article 36 – paragraph 1 b (new)
Article 36 – paragraph 1 b (new)
The European Commission should within two years of implementation of this Directive, produce a report providing an overview of the availability of debt-advice services across Member States, including their structure and financing models, and identify best practices for the further developments of such services.
Amendment 453 #
Proposal for a directive
Article 37 – paragraph 1
Article 37 – paragraph 1
Member States shall ensure that creditors, credit intermediaries and providers of crowdfunding credit services that are not credit institutions as defined in Article 4(1), point (1), of Regulation (EU) No 575/2013 are subject to an adequate admission process and to registration and supervision arrangements set up by an independent competent authority. The appropriate European level shall oversee the efficiency of the admission, registration and supervision of non-credit institutions on a regular basis.
Amendment 460 #
Proposal for a directive
Article 40 – paragraph 2 a (new)
Article 40 – paragraph 2 a (new)
2a. The participation of creditors, credit intermediaries and providers of crowdfunding credit services in out-of- court dispute settlement mechanisms for household customers shall be mandatory unless the Member State demonstrates to the Commission that other mechanisms are equally effective.