44 Amendments of Sven GIEGOLD related to 2011/0062(COD)
Amendment 181 #
Proposal for a directive
Recital 3 a (new)
Recital 3 a (new)
Amendment 396 #
Proposal for a directive
Article 8 – paragraph 1 – introductory part
Article 8 – paragraph 1 – introductory part
1. Member States shall ensure that any advertising concerning credit agreements as set out in Article 2 which indicates an interest rate or any figures relating to the cost of the credit to the consumer shall include the standard information in accordance with this Article on a durable medium or in electronic form.
Amendment 397 #
Proposal for a directive
Article 8 – paragraph 1 a (new)
Article 8 – paragraph 1 a (new)
Amendment 403 #
Proposal for a directive
Article 8 – paragraph 2 – subparagraph 1 – point e
Article 8 – paragraph 2 – subparagraph 1 – point e
(e) the annual percentage rate of charge, if applicable under the different assumptions as defined in Article 12;
Amendment 408 #
Proposal for a directive
Article 8 – paragraph 2 – subparagraph 1 – point g
Article 8 – paragraph 2 – subparagraph 1 – point g
(g) the number, frequency and amount of the instalments; , if applicable under the different assumptions as defined in Article 12.
Amendment 416 #
Proposal for a directive
Article 8 – paragraph 2 – subparagraph 1 – point i a (new)
Article 8 – paragraph 2 – subparagraph 1 – point i a (new)
(ia) the amount of aggregated charges the consumer has to pay besides his repayments to the creditor in the national currency.
Amendment 417 #
Proposal for a directive
Article 8 – paragraph 2 – subparagraph 1 – point i b (new)
Article 8 – paragraph 2 – subparagraph 1 – point i b (new)
(ib) the possibility and the costs of early repayment.
Amendment 418 #
Proposal for a directive
Article 8 – paragraph 2 – subparagraph 1 – point i c (new)
Article 8 – paragraph 2 – subparagraph 1 – point i c (new)
(ic) the currency of the credit and if it is a credit in foreign currencies an explicit warning concerning the exchange rate risk.
Amendment 420 #
Proposal for a directive
Article 8 – paragraph 3 a (new)
Article 8 – paragraph 3 a (new)
3a. Member States shall ensure that the national responsible authorities provide binding guidelines which set out the standards for an easily legible appearance and comparable content of the standard information in accordance with this article.
Amendment 421 #
Proposal for a directive
Article 8 – paragraph 3 b (new)
Article 8 – paragraph 3 b (new)
3b. Any advertising for credit agreements has to mention clearly understandable the word ‘credit’.
Amendment 426 #
Proposal for a directive
Article 8 a (new)
Article 8 a (new)
Amendment 438 #
Proposal for a directive
Article 9 – paragraph 1 – subparagraph 2 – point g
Article 9 – paragraph 1 – subparagraph 2 – point g
(g) an indicative example of the total cost of credit for the consumer and annual percentage rate of charge, if applicable under the different assumptions as defined in Article 12;
Amendment 440 #
Proposal for a directive
Article 9 – paragraph 1 – subparagraph 2 – point g a (new)
Article 9 – paragraph 1 – subparagraph 2 – point g a (new)
(ga) the number, frequency and amount of the instalments, if applicable under the different assumptions as defined in Article 12;
Amendment 453 #
Proposal for a directive
Article 9 – paragraph 1 – subparagraph 2 – point k a (new)
Article 9 – paragraph 1 – subparagraph 2 – point k a (new)
(ka) an explicit warning of the exchange rate risk if the credit is repayable in a foreign currency;
Amendment 454 #
Proposal for a directive
Article 9 – paragraph 1 – subparagraph 2 – point k b (new)
Article 9 – paragraph 1 – subparagraph 2 – point k b (new)
(kb) the charges for the credit intermediary if applicable;
Amendment 455 #
Proposal for a directive
Article 9 – paragraph 1 – subparagraph 2 – point k c (new)
Article 9 – paragraph 1 – subparagraph 2 – point k c (new)
(kc) If the credit agreement is an endowment mortgage or if the consumer has to redeem the loan indirectly by funding a savings-contract or investing in other financial instruments to repay the loan by the return of those investments, the costs for this model and an explicit warning if there is a risk, that the amount of the endowment or the financial instruments will not be sufficient to meet his credit obligations and a total of the gap in a worst case;
Amendment 467 #
Proposal for a directive
Article 9 – paragraph 2 – subparagraph 2
Article 9 – paragraph 2 – subparagraph 2
Member States shall ensure that wthen an offer binding on the creditor is provided to the consumer, it shall be accompanied by an ESIS. In such circumstances, Member States shall ensure that the credit agreement cannot be concluded until the consumer credit agreement cannot be concluded until the consumer has been provided with an offer binding on the creditor on paper or on a durable medium and has hada sufficient timeperiod 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. The offer shall be binding for the creditor for at least one week. A right of withdrawal shall be granted for two weeks when the contract is concluded.
Amendment 486 #
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 provides the consumer automatically with a copy on paper or on a durable medium of the draft credit agreement 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. The draft copy shall neither in appearance nor in structure aberrate significantly from the final agreement.
Amendment 488 #
Proposal for a directive
Article 9 a (new)
Article 9 a (new)
Article 9 a Variable interest rates 1. Member States shall adopt measures to protect consumers against defaulting when variable interest rates change significantly. If Member States do not define general caps on variable interest rates, they shall ensure that all lenders specify a maximum cap. Creditworthiness shall be checked on the basis of this maximum cap. 2. Changes in interest rates shall be based only on objective, reliable, public and external indices to the lender, like market rates. 3. When the interest rate increases, the consumer shall always have the possibility to opt to extend the repayment period, with a maximum of 5 years, without supplementary costs and without increase in the periodic instalments.
Amendment 521 #
Proposal for a directive
Article 12 – title
Article 12 – title
Calculation of the annual percentage rate of charge or cost scenarios
Amendment 522 #
Proposal for a directive
Article 12 – paragraph 1 – subparagraph 2 a (new)
Article 12 – paragraph 1 – subparagraph 2 a (new)
The annual percentage rate of charge for credit agreements can only be calculated for periods of fixed interest rates and fixed charges. For periods of variable interest rates the annual percentage rate of charge has to be calculated under the estimations according to Article 12 – paragraph 4 – point 2 (new). Both results have to be published in the ESIS. Because of the exchange rate risk for consumers credit agreements in foreign currencies shall be considered as credit agreements with variable interest rates. The annual percentage rate of charge for those credit agreements has also to be calculated under the estimations according to Article 12 – paragraph 4 – point 2 (new). Both results have to be published in the ESIS. In the case of credit agreements containing clauses allowing variations in the borrowing rate after a certain period of fixed interest rates, the annual percentage rate of charge has to be calculated for the fixed rate period, including all charges. If the credit agreement contains charges unquantifiable at the time of the conclusion of the agreement, the annual percentage rate of charge shall contain the highest possible charges, or if the maximal rate of charges is not limited the highest rate of charges which would have been applicable under the same conditions during the last 15 years.
Amendment 527 #
Proposal for a directive
Article 12 – paragraph 2 – subparagraph 2
Article 12 – paragraph 2 – subparagraph 2
Where the opening of an 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 credit to the consumer, unless the costs have been clearly and separately shown in the credit agreement or in any other agreement concluded with the consumer.
Amendment 533 #
Proposal for a directive
Article 12 – paragraph 4
Article 12 – paragraph 4
Amendment 536 #
Proposal for a directive
Article 12 – paragraph 4 – subparagraph 1 a (new)
Article 12 – paragraph 4 – subparagraph 1 a (new)
If the credit agreement is an endowment mortgage or if the consumer has to redeem the loan indirectly by funding a savings-contract or investing in other financial instruments to repay the loan by the return of those investments, Member States shall ensure that the costs for those models are calculated along the lines of the calculation of the annual percentage rate of charges for direct repayments.
Amendment 537 #
Proposal for a directive
Article 12 – paragraph 4 – subparagraph 2 a (new)
Article 12 – paragraph 4 – subparagraph 2 a (new)
For all periods of variable interest rates, variable charges, or credit agreements in a foreign currency, creditors shall provide the consumer with estimations of the charges, whereby the annual percentage rate of charge has to be calculated on the assumptions that the borrowing rate and other charges, or the exchange rate will be calculated at the rate set: - at the signature of the contract and - at the most disadvantageous moment regarding at least the last 15 years.
Amendment 542 #
Proposal for a directive
Article 12 a (new)
Article 12 a (new)
Article 12 a (1) If a credit has to be repaid in a foreign currency, member states shall ensure, that the exchange rate risk for consumers is limited to the worst case scenario as published in the ESIS. (2) If the credit agreement is an endowment mortgage or if the consumer has to redeem the loan indirectly by funding a savings-contract or investing in other financial instruments to repay the loan by the return of those investments and the amount of the endowment or the financial instrument differs after its lifetime from the worst case scenario as described in the ESIS, the creditor shall be liable.
Amendment 552 #
Proposal for a directive
Article 13 – paragraph 2 a (new)
Article 13 – paragraph 2 a (new)
2 a. The same principal shall be applicable for mortgage endowments and similar credit agreements.
Amendment 561 #
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 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 borrower will not occupy the property and which allows the borrower to rent the property, 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 meet the credit obligations 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 572 #
Proposal for a directive
Article 14 – paragraph 2 – point a
Article 14 – paragraph 2 – point a
(a) Where the assessment of the consumer's creditworthiness results in a negative prospect for his ability to repay the credit over the lifetimemeet the obligations of the credit agreement, the creditor refuses credit.
Amendment 609 #
Proposal for a directive
Article 14 a (new)
Article 14 a (new)
Amendment 610 #
Proposal for a directive
Article 15 – title
Article 15 – title
Disclosure obligation on the part of the consumer
Amendment 611 #
Proposal for a directive
Article 15 – paragraph 1
Article 15 – paragraph 1
1. Member States shall ensure that consumers provide creditors and, where applicable, credit intermediaries withrequest relevant, complete and correct information on their financial situation and personal circumstances in the contexturse of the credit application process. That information should be supported, when necessary, by documentary evidence from independently verifiable sources. The request has to be clear and easily understandable for consumers. The creditor and where applicable the credit intermediary shall provide the consumer with a documentation of the request and the consumers reply on paper or another durable medium when handing over the ESIS referred to in Art 9.
Amendment 617 #
Proposal for a directive
Article 15 – paragraph 2 – subparagraph 2
Article 15 – paragraph 2 – subparagraph 2
Member States shall ensure that in cases where the consumer chooses not to provide the information necessary for an assessment of his creditworthiness, the creditor or credit intermediary warns the consumer that they are unable to carry out a creditworthiness assessment and therefore that the credit may not be granted. This warning may be provided in a standardised format. In those cases the creditor should not be liable for an inaccurate creditworthiness assessment.
Amendment 634 #
Proposal for a directive
Article 17 – paragraph 1
Article 17 – paragraph 1
1. For the purposes of this Directive, ‘advice’ constituteMember States shall ensure that advice is provided as a separate service from the granting of a credit. S and that such a service can only be marketed as advice when the remuneration of the individual providing the service is transparent to the consumer: (a) the natural or legal person providing the advice is an appropriately authorised creditor or credit intermediary; (b) the adviser has the appropriate professional competence; (c) there are no conflicts of interest between the one providing advice and the consumer, and; (d) the remuneration for the service is transparent to the consumer and explicitly agreed with the consumer before the provision of the service.
Amendment 653 #
Proposal for a directive
Article 17 – paragraph 2 a (new)
Article 17 – paragraph 2 a (new)
2 a. Member states shall ensure that consumers receive a full documentation of the whole advisory service on paper or on a durable medium.
Amendment 659 #
Proposal for a directive
Article 18 – paragraph 1
Article 18 – paragraph 1
1. Member States shall ensure that the consumer has a statutory or contractual right to discharge his obligations under a credit agreement prior to the expiry of that agreement. In such cases, he shall be entitled to a reduction in the total cost of the credit, such a reduction consisting of the interest and the costs for the remaining duration of the contract. Those reductions can be offset against legitimate indemnities by creditors.
Amendment 669 #
Proposal for a directive
Article 18 – paragraph 2 – subparagraph 1
Article 18 – paragraph 2 – subparagraph 1
Member States may provide that the exercise of the right refershall ensure that cred ito in paragraph 1 is subject to certain conditions. Such conditions may include time limitations on the exercise of the right, different treatment depending on the type of the borrowing rate, or restrictions with regard to the circumstances under which the right may be exercised. Member States may also provide that the crs shall not impose any penalty above a legitimate indemnity on a consumer who exercises the right referred to in paragraph 1.Creditors should be entitled to fair and objectively justifiedall be assured of appropriate compensation for potential costs directly linked to early repayment of the credit. In any event, if the early repayment falls within a period for which the borrowing rate is fixed, exercise of the right may be made subject to the existence of a special interest on the part of the consumer by Member States.
Amendment 679 #
Proposal for a directive
Article 18 – paragraph 2 – subparagraph 2
Article 18 – paragraph 2 – subparagraph 2
Amendment 685 #
Proposal for a directive
Article 18 – paragraph 2 – subparagraph 2 a (new)
Article 18 – paragraph 2 – subparagraph 2 a (new)
The EBA shall develop guidelines for the calculation of indemnities in case of early repayment in accordance with Art. 16 of regulation No. 1093/2010 of the European Parliament and of the Council.
Amendment 699 #
Proposal for a directive
Article 18 a (new)
Article 18 a (new)
Article 18 a Switching of creditor 1. Member States shall ensure that creditors may transfer credit agreements or portfolios of credit agreement to other financial institutions as long as the loan conditions are not altered to the disadvantage of the consumer. This paragraph shall be without prejudice to Article 122a of Directive 2006/48/EC. The credit agreement can not be transferred to another creditor without the consent of the consumer. If the creditor is an institute which undergoes a process of restructuring the national competent authority may decide to suspend this prerequisite of approval. In this case member states shall ensure that mortgages portfolios are transferable to a new lender without registration of a new mortgage deed for each loan in the transferred portfolio. 2. Member States shall ensure that consumers also have the right to transfer a credit agreement to a new creditor which is prepared to accept the transfer and which makes a binding offer. Such a transfer shall be possible under the same conditions as an early repayment pursuant to of Article 18. The creditor shall also be entitled to adequate compensation as foreseen for early repayment under the conditions of Art. 18.
Amendment 713 #
Proposal for a directive
Article -19a (new)
Article -19a (new)
Article -19a Loan-to-value Ratio (LTV) Member States shall ensure that the value of a loan shall not exceed a total of the value of the residential property, notary fees, administrative costs and taxes. Stricter ratios may be adopted by the relevant competent authorities temporarily or permanently. Member states shall adopt stricter LTVs in their markets for credit agreements which bear the risk of varying instalments due to the development of exchange rates or interest rates. The loan shall in those cases not exceed a total of 90% of the value of the property, notary fees, administrative costs and taxes EBA on its own initiative or on request of the ESRB may, based on sound assessment of the residential property market developments in a Member State, issue warnings to the relevant competent authorities and call for the introduction of stricter LTVs in general or on specific credit agreements. In case of non action EBA shall publish those warnings. EBA on its own initiative or on request of the ESRB may also call on the council to take a decision in accordance with Article 18 Paragraph 2 of Regulation No. 1093/2010 of the European Parliament and of the Council. In this case EBA may take a decision in accordance to Art. 18 Paragraph 3 of Regulation No. 1093/2010 of the European Parliament and of the Council to implement stricter LTVs for the affected markets.
Amendment 723 #
Proposal for a directive
Article 19 – paragraph 4
Article 19 – paragraph 4
4. Member States shall ensure that authorised credit intermediaries are subject to supervision of their ongoing activities by their relevant homest competent authorityies as referred to in Article 4. Host competent authorities shall have the power to intervene if credit intermediaries fail to comply with their duties and responsibilities defined in this Directive. Host competent authorities shall have the right to refuse a passport access if they have justifiable reason to doubt that the accessing intermediaries comply with the preconditions defined in this Directive.
Amendment 732 #
Proposal for a directive
Article 24 – paragraph 1 – subparagraph 2
Article 24 – paragraph 1 – subparagraph 2
Amendment 738 #
Proposal for a directive
Article 25 – paragraph 1
Article 25 – paragraph 1
1. Member States shall ensure that appropriate, independent, balanced and effective complaints and redress procedures are established for the out-of- court settlement of disputes concerning rights and obligations established under this Directive between creditors and consumers and between credit intermediaries and consumers, using e. Existing bodies wheremay be used if they are neutrally set, balanced, free of charge for consumers and appropriate. Member States shall further ensure that all creditors and credit intermediaries adhere to one or more such bodies implementing such complaint and redress procedures.