Activities of Alfredo PALLONE related to 2011/0062(COD)
Plenary speeches (2)
Credit agreements relating to residential property (debate)
Credit agreements relating to residential property (debate)
Shadow 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 (43)
Amendment 192 #
Proposal for a directive
Recital 8
Recital 8
(8) As consumers and enterprises are not in the same position, they do not need the same level of protection. While it is important to guarantee consumers’ rights by provisions that cannot be derogated from by contract, it is reasonable to let enterprises and organisations engage in other agreements. This Directive should therefore apply to credit granted to consumers. Member States should, however, have the possibility to extend the scope to natural or legal persons that are not consumers, notably micro-enterprises, as defined by Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises26 .
Amendment 196 #
Proposal for a directive
Recital 9
Recital 9
(9) The objective of this Directive is to ensurepromote responsible lending and borrowing in the context of a transparent, efficient and competitive internal market for loans related to residential immovable property, while ensuring that all credits provided to consumers benefit from a high level of protection. It should therefore apply to credits secured by real estate, or credits which are used to purchase a property in some Member States and to credits for the renovation of residential property that are not covered by Directive 2008/48/EC of the European Parliament and of the Council of 23 April 2008 on credit agreements for consumers and repealing Council Directive 87/102/EEC27 which lays down rules at Union level concerning consumer credit agreements. Furthermore, this Directive should not be applied to certain types of credit agreements where the credit is granted by an employer to his employees under certain circumstances, as already provided in Directive 2008/48/EC or where a credit is granted to a restricted public under a statutory provision, on terms more favourable to consumers that those prevailing on the market.
Amendment 208 #
Proposal for a directive
Recital 16
Recital 16
(16) The applicable legal framework should give consumers the confidence that creditors and credit intermediaries are acting in the bestby taking into account the interests of the consumer. A key aspect of ensuring such consumer confidence is the requirement to ensure a high degree of fairness, honesty and professionalism in the industry. While this Directive should require relevant knowledge and competence to be proven at the level of the institution, Member States should be free to introduce or maintain such requirements applicable to individual natural persons.
Amendment 211 #
Proposal for a directive
Recital 16 a (new)
Recital 16 a (new)
Amendment 217 #
Proposal for a directive
Recital 20 a (new)
Recital 20 a (new)
(20a) Consumers should receive personalised information by means of the ESIS in good time prior to the conclusion of the credit agreement in order to enable them to compare and reflect on the characteristics of credit products. Member States shall ensure that when a binding offer is provided to the consumer, it shall be accompanied by the ESIS. Credit agreement should not be concluded until the consumer has had sufficient time to compare the offers, assess their implications and take an informed decision on whether to accept an offer, regardless of the means of conclusion of the contract. In order to achieve this objective Member States may regulate the period of time regarded as sufficient for the consumer to compare the offers, assess their implications and take an informed decision on whether to accept an offer.
Amendment 222 #
Proposal for a directive
Recital 23
Recital 23
(23) In order to promote the establishment and functioning of the internal market and to ensure a high degree of protection for consumers throughout the Union, it is necessary to ensure the comparability of information relating to annual percentage rates of charge throughout the Union. The total cost of the credit to the consumer should comprise all the costs that the consumer has to pay in connection with the credit agreement, except for notarial costs and registration costs. It should therefore include interest, commissions, taxes, fees for credit intermediaries and any other fees as well as the cost of insurance, the valuation of the property or other ancillary products, where these are obligatory in order to obtain the credit on the terms and conditions marketed. As the annual percentage rate of charge can at the pre- contractual stage be indicated only through an example, such an 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 under consideration. Given the complexities of calculating an annual percentage rate of charge (for instance, for credits based on variable interest rates or non-standard amortisation) and in order to be able to accommodate product innovation, technical regulatory standards could be employed to amend or specify the method of calculation of the annual percentage rate of charge. The definition of and methodology used for calculating the annual percentage rate of charge in this Directive should be the same as those in Directive 2008/48/EC in order to facilitate consumer understanding and comparison. Those definitions and methodologies may, however, differ in the future should Directive 2008/48/EC be modified at a later date. Member States are free to maintain or introduce prohibitions on unilateral changes to the borrowing rate by the creditor.
Amendment 225 #
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 the credit over theits lifetime of the loan including, but not limited to, the consumer’s income, savings, assets, regular expenditures, debts and other financial commitments, credit score, past credit history, ability to handle interest rate adjustments, and other existing credit commitreasonable assumptions as to the consumer’s situation over the term of the proposed credit agreements. Additional provisions may be necessary to further elaborate on the different elements that may be taken into consideration in a creditworthiness assessment. These objectives may be satisfied through an effective prudential regulation. Member States may issue 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 ratio. If a consumer is subsequently unable to meet his debt obligation relating to the credit agreement after a positive creditworthiness assessment, this should not automatically mean that the creditworthiness assessment was conducted improperly. The provisions of this Directive are without prejudice to the national and Union regulations on the sound and prudent management of creditors.
Amendment 231 #
Proposal for a directive
Recital 25
Recital 25
(25) A negative creditworthiness assessment should indicate to the creditor that the consumer is unable to afford the credit and as a consequence, the creditor should not grant the credit. Such a negative outcome may derive from a wide range of reasons, including but not limited to the consultation of a database or a negative credit score. A positive creditworthiness assessment should not constitute an obligation for the creditor to provide credit.
Amendment 243 #
Proposal for a directive
Recital 31
Recital 31
(31) In order to be in a position to understand the nature of the service, consumers should be made aware of what constitutes a personalised recommendation on suitable credit agreements for that consumer’s needs and financial situation (‘advice’) and when it is being provided and when it is not. It is therefore important to ensure that the service of advice is a distinct service which is separately remunerated in a manner transparent to the consumer. Consumers should also be able to rely on the competence of the adviser. Those providing advice should comply with general standards in order to ensure that the consumer is presented with a range of products suitable for his needs and circumstances and should also have the necessary professional competence to provide expert advice. That service should be based on a fair and sufficiently wide- ranging analysis of the products available on the market, in the case of provision of advice by an untied credit intermediary, or from within the creditor’s organisation in the case of provision of advice by the creditor or a tied credit intermediary, and on a close inspection of the consumer’s financial situation, preferences and objectives. Such an assessment should be based on up-to-date information and reasonable assumptions on the consumer’s circumstances during the lifetime of the loan. Member States may clarify how the suitability of a given product for a consumer should be assessed in the context of the provision of advice. The act of making a binding offer to a consumer does not in itself constitute advice.
Amendment 253 #
Proposal for a directive
Recital 32
Recital 32
(32) A consumer’s ability to repay his credit prior to the expiry of his credit agreement may play an important role in promoting competition in the single market and the free movement of EU citizens. However, substantial differences exist between the national principles and conditions under which consumers have the ability to repay and the conditions under which such early repayment can take place. Whilst recognising the diversity in mortgage funding mechanisms and the range of products available, certain standards with regard to early repayment of credit are essential at Union level in order to ensure that consumers have the possibility to discharge their obligations before the date agreed in the credit agreement and the confidence to shop around for the best products to meet their needs. Member States should therefore ensure, either by legislation or by means of contractual clauses, that consumers have a statutory or contractual right to early repayment; nevertheless, Member States should be able to define the conditions for the exercise of such a right. These conditions may include time limitations on the exercise of the right, different treatment depending on the type of the borrowing rate, whether fixed or variable, restrictions with regard to the circumstances under which the right may be exercised. Member States cshould also providensure that the creditor should beis entitled to fair and objectively justified 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. Such special interest may for example occur in case of divorce or unemployment. Where a Member State chooses to lay down such conditions, these should not make the exercise of the right excessively difficult or onerous for the consumer.
Amendment 277 #
Proposal for a directive
Article 1 – paragraph 1
Article 1 – paragraph 1
The purpose of this Directive is to lay down a framework for certain aspects of the laws, regulations and administrative provisions of the Member States concerning credit agreements concluded with consumers relating to residential immovable property for consumers and concerning certain aspects of the prudential and supervisory requirements for credit intermediaries and creditors.
Amendment 283 #
Proposal for a directive
Article 2 – paragraph 1 – introductory part
Article 2 – paragraph 1 – introductory part
1. This Directive shall apply to the following credit agreements as defined in Article 1:
Amendment 304 #
Proposal for a directive
Article 2 – paragraph 2 – point b a (new)
Article 2 – paragraph 2 – point b a (new)
(ba) Credit agreement where the creditor: – contributes a lump sum and/or periodic payments and/or other forms of credit disbursement in return for a sum deriving from the future sale of an immovable property and/or a right relating to immovable property and – will not seek full repayment of the credit until the occurrence of one or more specified life events of the borrower, as defined by Member States, unless a breach of contractual obligations that allows the creditor to terminate the credit agreement occurs (equity release).
Amendment 305 #
Proposal for a directive
Article 2 – paragraph 2 – point b b (new)
Article 2 – paragraph 2 – point b b (new)
(bb) credit agreements where the credit is granted free of interest and without any other charges.
Amendment 307 #
Proposal for a directive
Article 2 – paragraph 2 a (new)
Article 2 – paragraph 2 a (new)
2a. Member States may provide that some or all articles of this Directive do not apply to credit agreements which relate to loans granted to a restricted public under a statutory provision with a general interest purpose, and at lower interest rates than those prevailing on the market or for free of interest or on other terms which are more favourable to the consumer than those prevailing on the market and at interest rates not higher than those prevailing on the market.
Amendment 320 #
Proposal for a directive
Article 3 – paragraph 1 – point f
Article 3 – paragraph 1 – point f
(f) ‘Tied credit intermediary’ means any credit intermediary who acts on behalf of and under the full responsibility of only one creditor or one group or of more creditors and more groups.
Amendment 326 #
Proposal for a directive
Article 3 – paragraph 1 – point k
Article 3 – paragraph 1 – point k
(k) ‘Total cost of the credit to the consumer’ means the total cost of the credit to the consumer as defined in Article 3(g) of Directive 2008/48/ECall costs, including interest, commissions, taxes and any other kind of fee, which the consumer is required to pay in connection with the credit agreement and which are known to the lender, except notary fees and mortgage registration fees; costs in respect of ancillary services relating to the credit agreement, in particular costs relating to the valuation of the property and insurance premiums, are also included if the conclusion of a service contract is compulsory in order to obtain the credit or to obtain it on the terms and conditions marketed and these costs are known to the lender.
Amendment 334 #
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 obligationsn the prospect for the debt obligations resulting from the credit agreement to be repaid.
Amendment 354 #
Proposal for a directive
Article 5 – paragraph 1
Article 5 – paragraph 1
1. Member States shall require that, when granting, intermediating or advising on credit and, where appropriate, ancillary services to consumers, the creditor or the credit intermediary acts honestly, fairly and professionally in accordance with the besttaking into account the interests of the consumer.
Amendment 359 #
Proposal for a directive
Article 5 – paragraph 2
Article 5 – paragraph 2
2. Member States shall ensure that the manner in which creditors remunerate their staff and the relevant credit intermediaries and the manner in which credit intermediaries remunerate their staff do not impede compliance with the obligation to act in accordance with the besttaking into account the interests of the consumer, as referred to in paragraph 1.
Amendment 375 #
Proposal for a directive
Article 6 – paragraph 1 – point a
Article 6 – paragraph 1 – point a
(a) The staff of creditors and credit intermediaries who are in direct contact with the consumer 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). 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 393 #
Proposal for a directive
Article 6 – paragraph 4
Article 6 – paragraph 4
Amendment 475 #
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 creditor is provided to, in good time before the consumer, it shall be accompanied by an ESISs bound by any credit agreement or offer, an ESIS is provided. In such circumstances, Member States shall ensure that the credit agreement cannot be concluded until the consumer has had sufficient time to compare the offers, assess their implications and take an informed decision on whether to accept an offer, regardless of the means of conclusion of the contract.
Amendment 516 #
Proposal for a directive
Article 11 – paragraph 1
Article 11 – paragraph 1
Member States shall ensure that creditors and, where applicable, credit intermediaries provide adequate explanations to the consumer on the proposed credit agreement(s) and any ancillary service(s), in order to place the consumer in a position enabling him to assess whether the proposed credit agreements and ancillary services are adapted to his needs and financial situation. An adequate explanation shall include the provision of personalised information on the characteristics of the credits on offer, without however formulating any recommendation. Creditors and, where applicable, credit intermediaries shall accurately assess the level of knowledge and experience with credit of the consumer by any means necessary so as to enable the creditor or the intermediary to determine the level of explanations to be given to the consumer and adjust such explanations accordinglyAn explanation of the risks connected with the choice of a variable or of a fixed borrowing rate should be included as well.
Amendment 523 #
Proposal for a directive
Article 12 – paragraph 1 a (new)
Article 12 – paragraph 1 a (new)
1 a. The annual percentage rate of charge shall be determined including exclusively the costs levied by the lender for the loan for his benefit.
Amendment 526 #
Proposal for a directive
Article 12 – paragraph 2 – subparagraph 1
Article 12 – paragraph 2 – subparagraph 1
Amendment 529 #
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, on the terms and the conditions marketed, 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 540 #
Proposal for a directive
Article 12 – paragraph 5 – subparagraph 1
Article 12 – paragraph 5 – subparagraph 1
Powers are delegated to the Commission in accordance with Article 26 and subject to the conditions of Articles 27 and 28, to amend the formula ato adopt regulatory technical standards in order to amend the assumptions used to calculate the annual percentage rate of charge as set out in Annex I.
Amendment 567 #
Proposal for a directive
Article 14 – paragraph 2 – point a
Article 14 – paragraph 2 – point a
Amendment 583 #
Proposal for a directive
Article 14 – paragraph 2 – point d
Article 14 – paragraph 2 – point d
(d) Where the credit application is rejected on the basis of the data contained, or lack thereof, in a database that has been consulted, the creditor informs the consumer immediately and without charge of the name of the database that was consulted, the result of the consultation as well as of its controller and of his right to access and, where necessary, his right to rectify his data in that database. The information shall be provided unless the provision of such information is prohibited by other Union legislation or is contrary to objectives of public policy or public security.
Amendment 599 #
Proposal for a directive
Article 14 – paragraph 4
Article 14 – paragraph 4
4. Further to assessing a consumer's creditworthiness, Member States shall ensure that creditors and credit intermediaries obtain the necessary information regarding the consumer's personal and financial situation, his preferences and objectives and consider a sufficiently large number of credit agreements from their product range in order for the consumer to identify products that are not unsuitable for the consumer givento his needs, financial situation and personal circumstances. Such considerations shall be based on the information that is up to date at that moment in time and on reasonable assumptions as to the consumer's situation over the term of the proposed credit agreement.
Amendment 601 #
Proposal for a directive
Article 14 – paragraph 4 a (new)
Article 14 – paragraph 4 a (new)
4 a. Consumers shall act with prudence and respect their contractual obligations.
Amendment 605 #
Proposal for a directive
Article 14 – paragraph 5
Article 14 – paragraph 5
Amendment 641 #
Proposal for a directive
Article 17 – paragraph 2 – introductory part
Article 17 – paragraph 2 – introductory part
2. Member States shall ensure that the creditor or credit intermediary informs the consumer, in the context of a given transaction, whether or not advice is being or will be provided to him and, if applicable, indicates the fee payable by the consumer for the provision of advice. This may be done through additional pre- contractual information. Where advice is provided to consumers, in addition to the requirements set out in Articles 5 and 6, Member States shall ensure that creditors and credit intermediaries:
Amendment 647 #
Proposal for a directive
Article 17 – paragraph 2 – point a
Article 17 – paragraph 2 – point a
(a) consider a sufficiently large number of credit agreements available owithin the marketcreditor’s or the credit intermediary’s range of offered products so as to enable the recommendation of the most suitable credit agreements for the consumer's needs, financial situation and personal circumstances;
Amendment 660 #
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. In return, the creditor should be entitled to fair and objectively justified compensation for potential costs directly linked to early repayment of the credit.
Amendment 673 #
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 referred to 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 providshall ensure that the creditor ishould be entitled to fair and objectively justified 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.
Amendment 743 #
Proposal for a directive
Article 26 – paragraph 1
Article 26 – paragraph 1
1. The powers to adopt delegated acts referred to in Articles 6(4), 8(4), 9(3), 10(3), 14(5) and 16(2) shall be conferred on the Commission for an indeterminate period of time following the entry into force of this Directive.
Amendment 754 #
Proposal for a directive
Article 27 – paragraph 1
Article 27 – paragraph 1
1. The delegation of powers referred to in Articles 6(4), 8(4), 9(3), 10(3), 14(5) and 16(2) may be revoked at any time by the European Parliament or by the Council.
Amendment 761 #
Proposal for a directive
Article 29 – title
Article 29 – title
Amendment 762 #
Proposal for a directive
Article 29 – paragraph 1 a (new)
Article 29 – paragraph 1 a (new)
1 a. Insofar as this directive contains harmonised provisions, Member States cannot maintain or introduce into their national law provisions diverging from those laid down in this directive.
Amendment 772 #
Proposal for a directive
Article 31 – paragraph 2 – point g
Article 31 – paragraph 2 – point g
Amendment 782 #
Proposal for a directive
Annex 2 – part A – point 6 – introductory part
Annex 2 – part A – point 6 – introductory part