Consumer credits: EU institutions agree on revised legislation to better protect borrowers

The Renew Europe Group welcomes today’s deal between the European Parliament, the Council and Commission on the revision of the Consumer Credit Directive, increasing protection for those interested in borrowing money both online and offline.

During the negotiations, our political group advocated for a balanced approach at the EU level towards credit agreements, for the benefit of consumers and the market, in the context of an increasing demand for this type of financial product, caused by digitalisation. Creditors must offer complete pre-contractual information, displaying the real costs for consumers.

Proportionality is key when it comes to the nature, amount, and risk of the credit. The inclusion of right to be forgotten for cancer survivors, when it comes to tied insurances to consumer credits, is a big win as is the right of withdrawal and the optional exclusion of deferred debit cards, widely used by clients to deal with deferred payments.

Renew Europe MEP, Stéphanie Yon-Courtin (L’Europe Ensemble, France), shadow rapporteur on the revision of the Consumer Credit Directive, said:

"Today, we have accomplished an important milestone at the European level, as we have reached a balanced deal to strengthen consumer protection in light of increased digitalization of services and a high demand for consumer credits. The European Parliament, together with the Council, has agreed to protect the most vulnerable citizens while allowing the development and competitiveness of the payments market with consumer friendly products.

We have ensured that Big Tech cannot find loopholes in legislation to circumvent the rules and distort competition. As a member of the Renew Europe group, I feel very proud today about our contribution and the important role that our group has played throughout the negotiations”