33 Amendments of Pablo ARIAS ECHEVERRÍA related to 2021/0171(COD)
Amendment 123 #
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, albeit subject to a strict application of the principle of proportionality in order to avoid an undue administrative burden, to ensure increased transparency and better consumer protection, resulting in higher consumer confidence. To this extent, 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 133 #
Proposal for a directive
Recital 26
Recital 26
(26) Consumers who are legally resident in the Union should not be discriminated against on ground of their nationality or place of residence, or on any ground as referred to in Article 21 of the Charter when requesting, concluding or holding a credit agreement or an agreement for the provision of crowdfunding credit services within the Union. However, nothing in this Directive should be construed to oblige a creditor, credit intermediary or provider of crowdfunding credit services to provide services in Member States in which they do not conduct the business.
Amendment 134 #
Proposal for a directive
Article 2 – paragraph 2 – point j a (new)
Article 2 – paragraph 2 – point j a (new)
(ja) credit agreements for deferred debit products Low risk credit products are in scope of this Directive, but Articles 18, 30 and 31 do not apply to the provision of such products.
Amendment 140 #
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 and/or digital channels. 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, with further information made available on the consumer by clicking or swiping 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 or digital channels, the amount of information disclosed could be reduced. General and generic information should be provided through an appropriate medium which may include digital channels such as the undertaking's websites, etc. 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 148 #
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 daywithin a reasonable time 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 149 #
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 dayin good time 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 165 #
Proposal for a directive
Article 3 – paragraph 1 – point 25 a (new)
Article 3 – paragraph 1 – point 25 a (new)
(25a) deferred debit’ is a payment instrument offering a deferred debit of not more than 40days, repaid in full in one single payment, free of interest and incurring no other costs for the consumer except those linked to membership ancillary benefits and foreign exchange or other fees related to the manner of accessing the deferred debit facility;
Amendment 166 #
Proposal for a directive
Article 3 – paragraph 1 – point 25 b (new)
Article 3 – paragraph 1 – point 25 b (new)
(25b) low risk credit products’ means products where no interest is charged, there are no significant fees directly linked to the provision of the credit and revenue from late payment or default makes up in each financial year less than 1% of the total revenue generated by the product for the provider.
Amendment 168 #
Proposal for a directive
Recital 44
Recital 44
(44) Credit sales that have not been solicited by the consumers may in some cases be associated with practices that are harmful to the consumer. In this regard, harmful unsolicited sale of credit, including non- requested pre-approved credit cards sent to the consumers, or the unilateral increase of a consumers’ overdraft, overrunning or credit card limit, should be prohibited.
Amendment 175 #
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 and in keeping with the principle of proportionality, 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. 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 183 #
Proposal for a directive
Recital 47 a (new)
Recital 47 a (new)
(47 a) Taking into account the principle of proportionality, this Directive should lay down special rules for assessing the creditworthiness of consumers for ‘small value credit’ as defined in the definition norms. In this regard, data other than those specified in the Directive should not be consulted when assessing creditworthiness.
Amendment 200 #
Proposal for a directive
Recital 56
Recital 56
(56) Consumers should have a right of withdrawal without penalty and with no obligation to provide justification. However, the right of withdrawal should not be used in bad faith that is why this Directive also sets an objective deadline for exercising the right of withdrawal.
Amendment 229 #
Proposal for a directive
Recital 86 b (new)
Recital 86 b (new)
(86 b) Due to the ubiquitous trend of digitalisation and the emergence of new service providers in the consumer credit market, the European Commission should actively monitor the situation on the market and propose review of the Directive if new forms of actors appear whose business is not currently covered by this Directive.
Amendment 241 #
Proposal for a directive
Article 2 – paragraph 2 – point f a (new)
Article 2 – paragraph 2 – point f a (new)
(f a) credit agreements where the credit is granted free of interest and without any other charges other than late payment fees;
Amendment 244 #
Proposal for a directive
Article 2 – paragraph 2 – point g
Article 2 – paragraph 2 – point g
(g) credit agreements which relate to the deferred payment, free of interests and without any other charges, of an existing debt;
Amendment 249 #
Proposal for a directive
Article 2 – paragraph 2 – point j a (new)
Article 2 – paragraph 2 – point j a (new)
(j a) credit agreements for deferred debit products Low risk credit products are in scope of this Directive, but Articles 18, 30 and 31 do not apply to the provision of such products.
Amendment 274 #
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: I) agreements for the provision on a continuing basis of services or for the supply of goods of the same kind, where under which the consumer pays for for such services or goods for the duration of their provision by means of instalments; , (II) rental or leasing contracts in which the obligation to purchase the object to which the contract relates is not established either by the contract itself or by any other contract;such an obligation shall be deemed to exist if the creditor so decides unilaterally; (III) deferred payment of an invoice where the trader grants the consumer time to pay the invoice, free of interest and free of any other charge, including penalties, as agreed between the parties, as set out in the supplier’s invoice or as established by law, and where this payment is to be made within 30 days of the issuing of the invoice;
Amendment 279 #
(3 a) 'small value credit’ means a credit agreement involving a total amount of credit of up to EUR 200;
Amendment 304 #
Proposal for a directive
Article 3 – paragraph 1 a (new)
Article 3 – paragraph 1 a (new)
‘deferred debit’ is a payment instrument offering a deferred debit of not more than 40 days, repaid in full in one single payment, free of interest and incurring no other costs for the consumer except those linked to membership ancillary benefits and foreign exchange or other fees related to the manner of accessing the deferred debit facility.”
Amendment 305 #
Proposal for a directive
Article 3 – paragraph 1 b (new)
Article 3 – paragraph 1 b (new)
‘low risk credit products’ means products where no interest is charged, there are no significant fees directly linked to the provision of the credit and revenue from late payment or default makes up in each financial year less than 1% of the total revenue generated by the product for the provider
Amendment 340 #
Proposal for a directive
Article 8 – paragraph 3 a (new)
Article 8 – paragraph 3 a (new)
3 a. Without prejudice to (Digital Services Act Regulation) and Regulation 2016/679 (GDPR), if online advertisement concerning credit agreements covered by this regulation are based on personalized data they must clearly and unambiguously inform the consumer of this.
Amendment 341 #
Proposal for a directive
Article 8 – paragraph 3 a (new)
Article 8 – paragraph 3 a (new)
3a. Where the means used to communicate the standard information does not allow the information to be displayed visually in a simple manner, the consumer shall be able to access additional information through a hyperlink.
Amendment 358 #
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 dayin good time 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 359 #
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 within a reasonable time 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 542 #
Proposal for a directive
Article 17 – paragraph 1
Article 17 – paragraph 1
Without prejudice to the creditor’s ability to make offers to consumers, Member States shall prohibiensure that any sale of credit to consumers, withou is carried out at their prior request and with their explicit agreement.
Amendment 577 #
Proposal for a directive
Article 18 – paragraph 2 c (new)
Article 18 – paragraph 2 c (new)
2 c. Member States shall ensure that creditors or providers of crowdfunding services are held liable and are subject to appropriate sanctions in case of a breach of the above-mentioned provision.
Amendment 631 #
Proposal for a directive
Article 18 – paragraph 9 a (new)
Article 18 – paragraph 9 a (new)
9 a. This article shall apply without prejudice to Regulation (EU) n°2016/679 (GDPR).
Amendment 634 #
Proposal for a directive
Article 19 – paragraph 1 – subparagraph 1 (new)
Article 19 – paragraph 1 – subparagraph 1 (new)
Member States shall ensure that only those creditors and providers of crowdfunding credit services who are under the supervision of the competent national authority and who fully comply with Regulation (EU) n°2016/679 (GDPR) have access to the database.
Amendment 637 #
Proposal for a directive
Article 19 – paragraph 3
Article 19 – paragraph 3
3. ThState or private databases referred to in paragraph 1 shall hold at least information on consumers’ arrears in payment and shall not hold personal data revealing racial or ethnic origin, political opinions, religious or philosophical beliefs, or trade union membership, and the processing of genetic data, biometric data for the purpose of uniquely identifying a natural person, data concerning health or data concerning a natural person's sex life or sexual orientation nor data collected from digital social networks.
Amendment 639 #
Proposal for a directive
Article 19 – paragraph 4 – subparagraph 1 (new)
Article 19 – paragraph 4 – subparagraph 1 (new)
Member States shall ensure that consumers are notified within thirty days of the registration of any negative credit data in a database, informing them of the possibility of exercising their right of access, rectification, erasure and opposition, in line with Regulation (EU) n°2016/679 (GDPR).
Amendment 676 #
Proposal for a directive
Article 26 – paragraph 1 – subparagraph 1 a (new)
Article 26 – paragraph 1 – subparagraph 1 a (new)
Amendment 682 #
Proposal for a directive
Article 26 – paragraph 1 – subparagraph 2 a (new)
Article 26 – paragraph 1 – subparagraph 2 a (new)
The withdrawal period shall expire 12 months after the end of the initial withdrawal period.
Amendment 794 #
Proposal for a directive
Article 46 – paragraph 1 – subparagraph 1 (new)
Article 46 – paragraph 1 – subparagraph 1 (new)
In the evaluation referred to in the paragraph (1), the European Commission will include an assessment of new forms of service providers participating in the consumer credit market with a special focus on digital trends and will propose the necessary amendment to the Directive accordingly.