Consumer Credit - European Directive
Current position
The Consumer Credit Directive was adopted by the European Commission in May 2008, with an ensuing date for completing the transposition set for June 2010 for all member states. This Directive replaces the 1986 Consumer Credit Directive and amendments made to this Directive. The new CCD takes a maximum harmonisation approach and is intended to harmonise key aspects of consumer credit legislation in Member States as part of the objective of creating a common credit market across the European Union. At the same time, the Directive is also intended to maintain high levels of consumer protection.
Currently BERR is in the process of holding a series of informal working groups with stakeholders to inform policy options and help produce draft regulations. The drafting of the regulations is scheduled to commence around Christmas 2008. BERR aims to consult on draft regulations in a public consultation scheduled to start in spring 2009, and make the new regulations by November 2009.
As of October 2008, BERR has issued a regular bulletin to stakeholders and other interested parties. The first edition and all subsequent editions will be available from this website.
Earlier Info
January 2008, the European Parliament reached an agreement on a compromise text (see related Documents) with the Council following the political agreement reached in May 2007. A number of amendments were made by the Parliament. The text is expected to be formally adopted during Spring/Summer 2008, at which point each Member State will have two years to implement the Directive into national law.
September 2007, following political agreement reached in May, the proposal was formally transmitted to the European Parliament for its second reading. This is expected to last until January 2008. Depending on progress after that, the proposal could be formally adopted during Spring/Summer 2008, at which point each Member State will have two years to implement the Directive into national law.
October 2005 the Commission published a second revised text of the directive. We issued a supplementary consultation on this in March 2006, along with a partial Regulatory Impact Assessment. The Government response to the consultation was published in November 2006.
October 2004 the Commission adopted an amended proposal for a Directive. The amended proposal contains the European Commission's comments on the amendments adopted by the European Parliament in April 2004. Taking account of the amended proposal, the Presidency will now draft a text for discussion in the Council Working Group. We consulted about this in February 2005.
April 2004 the European Parliament adopted its first reading position on the Consumer Credit Directive. The European Parliament has substantially redrafted the Directive, in particular they have altered the scope of the Directive and the level of harmonisation. Whereas the Commission had proposed total harmonisation, the European Parliament prefers ‘optimum harmonisation’ which in effect means that Member State would retain the right to go further than the standards laid down in the Directive. However, the rules on APR would be subject to full harmonisation in order to facilitate the internal market.
September 2002 the Commission published a proposal for a new Directive on consumer Credit to update and expand the EU wide rules on consumer credit to take on board modern forms of consumer credit and to facilitate the internal market in this sector.
If you would like to be kept up-to-date about negotiations on the EC Consumer Credit Directive please inform us by responding to: tord.johnsen@berr.gsi.gov.uk
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