European Parliament draft report on the proposed Directive on consumer credits

On 12 July 2022, the European Parliament published compromise amendments on the draft report on the Proposal for a Directive of the European Parliament and of the Council on consumer credits. Overall, MEPs want better protection for consumers applying for loans online. The new EU rules aim at protecting consumers online from credit card debt, overdrafts and loans that are unsuitable for their financial situation. MEPs also introduced further requirements to assess the creditworthiness of people taking out a loan before it is granted. There should be clear consumer information and consumers should always obtain standard information so they can compare different offers, and understand the legal and financial consequences of loans and credit costs. MEPs would also like to increase the level of consumer protection and avoid over-indebtedness.