European Commission consults on review of CCD under New Consumer Agenda

Industry News | 30/06/20

The European Commission has launched a public consultation a proposal for a directive to review the Consumer Credit Directive (CCD) under its New Consumer Agenda. This follows the recent publication of an inception impact assessment, which found that the CCD does not fully achieve its objectives and identified the following main problems: inadequate scope, which fails to take into account new trends; issues with the content and disclosure of information; insufficient safeguards ensuring responsible lending and borrowing; and a lack of provisions dealing with exceptional situations, such as the disruption caused by the COVID-19 pandemic. As such the proposed review would take into account the impact of COVID-19 on the credit market and on consumers, including vulnerable consumers. The consultation will close on 6 October 2020, with Commission adoption of the directive planned for Q2 2021.