European Commission: Evaluation Roadmap of the Consumer Credit Directive

6 July 2018

On 2 June 2018, the European Commission published the Evaluation Roadmap of the Consumer Credit Directive (CCD) which will start in Q3-2018 and it is expected to conclude in Q4-2019.

Purpose and scope

The evaluation will assess if the rules of the CCD are still fit for purpose in the light of market developments. It will assess the:

  • effectiveness:  whether original objectives have been achieved,
  • efficiency: the functioning of the Directive from a simplification and burden reduction perspective,
  • coherence: how the Directive works together with other legislation in the field of retail financial services, consumer protection and data protection,
  • relevance: whether the tools of the Directive correspond to current needs, and
  • EU added value of the Directive: whether the EU intervention has delivered additional added value, compared to national actions.

The evaluation will gather evidence regarding the functioning of the CCD in its totality and in particular, regarding the following aspects:

  • design and distribution phases of credit products;
  • cross-selling of credits with other financial products;
  • creditworthiness assessment;
  • credit registers;
  • information disclosure;
  • rights of withdrawal; and
  • right of early repayment.

The deadline for feedback on the evaluation roadmap is 27 July 2018.

The Commission will make available by the end of 2018 a public consultation questionnaire for a minimum period of 12 weeks.

In parallel, a targeted consultation will also be conducted. The main stakeholders to be consulted will include national authorities (including consumer protection bodies), credit providers, industry associations and consumer organisations.

A synopsis report of the consultation will be published on the Commission’s website, tentatively by Spring 2019.

To read the full publication, click here.