17 October 2011

Eurofinas response to the European Commission consultation on the application of Directive 2005/29/EC on Unfair Commercial Practices

1. Codes of conduct

These codes set out guidance and general principles by which member lending institutions should operate and establish the standards of behaviour which are expected from them. These codes help to promote a consistent, balanced and safe business environment where both consumers and credit providers’ interests are taken into account. These codes provide flexible frameworks that come in addition to the regulatory provisions in force.

The European Commission should welcome and support self-regulatory initiatives, such as those undertaken by Eurofinas members. Eurofinas also believes that any future regulatory framework on unfair commercial practices should take into account these self-regulatory initiatives and the added value they provide.

2. Addressing consumer complaints: Internal Complaints Mechanisms and Alternative Dispute Resolution Mechanisms

Should a consumer complaint nevertheless arise, the industry has the necessary mechanisms in place in order to deal effectively with these complaints and to ensure that these complaints are resolved fairly and effectively.

On the one hand consumers have access to internal complaints mechanisms (customer services) of their consumer credit provider. On the other hand, consumers also have access to alternative dispute resolution (ADR) mechanisms. Efficient means for resolving disputes and obtaining compensation promote consumer and business confidence in the market and improve market performance. This is why Eurofinas fully supports the use of efficient alternative means to resolve disputes and obtain compensation. Moreover, the flexibility of ADR schemes offers advantages of a tailored and targeted approach to settling disputes more promptly.

In the field of consumer credit, a major step towards a high level of consumer protection across the EU was achieved with the adoption of Directive 2008/48/EC on credit agreements for consumers (the Consumer Credit Directive – CCD). Eurofinas stresses the need to ensure consistency with the ongoing initiative on ADR undertaken by the Commission.

Full response

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