EU Commission's proposal for the Directive on Consumer credit

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EU Commission’s proposal for the Directive on Consumer credit has finally came to light and certain changes are worthy of mentioning.

In example, under the current proposal the directive shall apply even to small loans below 200 EUR, to loans provided by crowdfunding platforms, and to “buy now pay later” credit products.

The practice of selling one product conditional upon purchase of another, so called tying, shall be newly prohibited, and so should be any sale of credit to consumers, without their prior request and explicit agreement.

And of course the proposal, among others, introduces stricter obligation to assess the creditworthiness of the consumer, price caps on the interest rates, annual percentage rate of charge and the total cost of the credit to the consumer, and reasonable forbearance before the execution of the amount due.