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Eurofinas, the voice of specialised consumer credit providers at European level, welcomes the swift publication by the European Commission of the summary of responses to its public consultation on responsible lending and borrowing.
In an effort to build more responsible and reliable markets and restore consumer confidence, the European Commission launched last summer a consultation in order to identify outstanding issues with regard to responsible lending and borrowing.
Referring to the consultation responses, Eurofinas Director General T. van de Werve noted that ‘many respondents acknowledge that things undoubtedly need to be remedied but question whether these issues have necessarily an EU dimension and/or concern all types of retail credit products’ He added, ‘There is also strong support for Eurofinas’s longstanding position that one should wait for the Consumer Credit Directive to be transposed, implemented and duly tested before taking any further steps concerning consumer credit’.
As regards the issue of credit intermediaries (which formed a large part of the consultation), Eurofinas emphasizes the need to adopt a differentiated approach and distinguish between brokers, agents and dealers/retailers involved in the distribution of credit at the point of sale. ‘It is crucial to ensure that any future European framework preserves the current diversity of lending channels. This is a prerequisite for maximizing consumer benefits through enhanced competition’ stressed van de Werve.
This responsible lending file will be an excellent test of incoming Commissioner Barnier’s determination to apply the European Commission’s Better Regulation principles, according to which ‘new regulatory initiatives should only be pursued where there is a need to do so, in a manner which is as straightforward as possible, based on dialogue with stakeholders, and in a way that keeps burdens on businesses and citizens to the minimum necessary’.