Information Disclosure in the EU Consumer Credit Directive: Opportunities and Limitations

2009 ◽  
Author(s):  
Catherine Garcia ◽  
Willem H. Van Boom
Keyword(s):  
Information Disclosure ◽  
Consumer Credit ◽  
Consumer Credit Directive ◽  
The Eu

scholarly journals Pre-agreement assessment as a responsible lending tool in South Africa, the EU and Belgium: Part 2

2018 ◽  
Vol 21 ◽  
pp. 1-38
Author(s):  
Corlia Maritha Van Heerden ◽  
Reinhard N/a Steennot
Keyword(s):  
South Africa ◽  
Consumer Credit ◽  
Critical Discussion ◽  
Mortgage Credit ◽  
Responsible Lending ◽  
Agreement Assessment ◽  
Consumer Credit Directive ◽  
Mortgage Credit Directive ◽  
National Credit Act ◽  
The Eu

Responsible lending has become a very pertinent issue on the agenda of credit regulators across the globe who seek to combat the causes of consumer over-indebtedness. In this context the use of "pre-agreement assessment" as a tool to filter out those instances where, based on a consumer's creditworthiness or ability to repay, credit should not be granted to such a consumer, is a feature common to the lending regimes of various jurisdictions. This contribution consists of two parts: Part 1 provides a critical discussion of the reckless credit provisions of the National Credit Act 34 of 2005. Part 2 details the responsible lending measures contained in the EU Consumer Credit Directive and the EU Mortgage Credit Directive and provides an appraisal of the responsible lending measures introduced by Belgium, being a jurisdiction that has always been very pro-active in the context of consumer credit protection.  

scholarly journals Pre-agreement assessment as a responsible lending tool in South Africa, the EU and Belgium: Part 1

2018 ◽  
Vol 21 ◽  
pp. 1-30
Author(s):  
Corlia Maritha Van Heerden ◽  
Reinhard N/a Stteennot
Keyword(s):  
South Africa ◽  
Consumer Credit ◽  
Critical Discussion ◽  
Mortgage Credit ◽  
Responsible Lending ◽  
Agreement Assessment ◽  
Consumer Credit Directive ◽  
Mortgage Credit Directive ◽  
National Credit Act ◽  
The Eu

Responsible lending has become a very pertinent issue on the agenda of credit regulators across the globe who seek to combat the causes of consumer over-indebtedness. In this context the use of “pre-agreement assessment” as a tool to filter out those instances where, based on a consumer’s creditworthiness or ability to repay, credit should not be granted to such consumer, is a feature common to the lending regimes of various jurisdictions.This contribution  consists of two parts: Part 1 provides a critical discussion of the reckless credit provisions of the National Credit Act 34 of 2005. Part 2 details the responsible lending measures contained in the EU Consumer Credit Directive and the EU Mortgage Credit Directive and provides an appraisal of the responsible lending measures introduced by Belgium, being a jurisdiction that has always been very pro-active in the context of consumer credit protection.  

An economic analysis of the EU Commission’s proposal for a new consumer credit directive

2004 ◽  
Vol 39 (2) ◽  
pp. 84-96 ◽  
Author(s):  
Wim Kösters ◽  
Stephan Paul ◽  
Stefan Stein
Keyword(s):  
Economic Analysis ◽  
Consumer Credit ◽  
Consumer Credit Directive ◽  
New Consumer ◽  
The Eu

Information Disclosure and Consumer Credit Knowledge: A Longitudinal Analysis

1975 ◽  
Vol 9 (1) ◽  
pp. 15-32 ◽  
Author(s):  
WILLIAM K. BRANDT ◽  
GEORGE S. DAY ◽  
TERRY DEUTSCHER
Keyword(s):  
Longitudinal Analysis ◽  
Information Disclosure ◽  
Consumer Credit

scholarly journals Systemic Usury and the European Consumer Credit Directive

2020 ◽  
Vol 89 (1) ◽  
pp. 115-132 ◽  
Author(s):  
Doris Neuberger ◽  
Udo Reifner
Keyword(s):  
Low Income ◽  
Market Failure ◽  
Credit Markets ◽  
Consumer Credit ◽  
Relevant Information ◽  
Financial Contracts ◽  
European Consumer ◽  
Bargaining Position ◽  
A Chain ◽  
Consumer Credit Directive

Summary: Usury is a frequent occurrence in consumer credit markets and particularly affects low-income households. Although the term usury conjures images of a greedy individual consciously acting to exploit the weak bargaining position of another by deceitful and even fraudulent means, we consider it as a systemic issue: as a problem of social discrimination, where belonging to a group which is statistically discriminated against leads to entrapment in a chain of usurious credit and financial contracts. This paper reviews the economic rationale for usury legislation and evaluates the European Consumer Credit Directive 2008/48/EC in this context. It identifies systemic usury as the product of market failure: the most powerful explanations for which are monopoly power, where the consumer is locked in a bilateral credit relationship; discrimination through risk-based pricing, and negative externalities. Contrary to the main focus of the European Consumer Credit Directive, improved disclosure of contract terms and other relevant information to consumers at the point of contracting cannot address systemic usury in credit markets. Even fully informed consumers can be discriminated against and become trapped in a situation of bilateral monopoly. As a consequence, the Directive is found to be ineffective: it implicitly acknowledges usurious practices and products as legal and undermines the national fight against usury. The Directive must be reformed.

Directive 2014/95/EU: building a research agenda

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Blerita Korca ◽  
Ericka Costa
Keyword(s):  
Literature Review ◽  
Information Disclosure ◽  
Research Agenda ◽  
Future Research ◽  
Content Type ◽  
Future Research Agenda ◽  
Eu Directive ◽  
Current State ◽  
State Of Research ◽  
The Eu

PurposeThis paper discusses the current state of research into Directive 2014/95/EU and non-financial disclosure (NFD), with the aim of offering a future research agenda.Design/methodology/approachThe authors have conducted a systematic literature review of 78 studies spanning seven years (2014–2020) that address Directive 2014/95/EU.FindingsThe literature review revealed four main avenues for future research. First, future studies could focus on addressing issues related to the EU Directive's potential impacts, both in terms of NFD and companies' financial performance. Second, because context plays an important role in defining the regulation's impact, future research should consider these contextual factors in NFD. Third, further research should investigate the interplay between the binding requirements of the Directive and the non-binding guidelines suggested to implement it. Finally, future research would do well to employ additional theoretical approaches in order to interpret the Directive's diverse effects for various countries, organisations and timelines.Research limitations/implicationsThis research agenda is intended to help scholars in this field to understand what has yet to be known in order to develop a complete understanding of the EU Directive on non-financial information disclosure.Practical implicationsFocussing on the Directive's implementation across countries and organisations with a longitudinal approach, this paper could indicate whether or not mandatory reporting enhances non-financial information disclosure and consequently, organisational actions. This work could inform both companies' and policymakers' approach to disclosure, whether mandatory or otherwise.Originality/valueTo date, many studies have focussed on specific issues regarding the EU Directive. This paper, however, presents the first systematic literature review considering the current state of research into the EU Directive, thus drawing a future research agenda.

Sign in / Sign up

Export Citation Format

Share Document