Directive 2008/48/EC on credit agreements for consumers and repealing Council Directive 87/102/EEC

A new consolidated version of Directive 2008/48/EC, the Consumer Credit Directive, was published in the Official Journal (OJ) of the EU. The Directive covers various issues relating to consumer credit, including the information that must be disclosed to consumers prior to entering into a credit agreement, the access of credit institutions to information pertaining to the creditworthiness of customers, the way credit agreements must be drawn up and the information that must be contained in such, the interest rate that may be charged in credit agreements, and the obligations of financial market intermediaries that facilitate credit agreements.
This latest consolidated version includes the modifications made by Directive (EU) 2021/2167 which lays out a common European framework for the servicing and purchase of non-performing loans of credit institutions with the objective to provide credit institutions with the means they need to deal with non-performing loans, to foster the development of a secondary market in non-performing loans, and to establish some kind of competition among credit servicers. Specifically, the provisions in the 2021 Directive to
– enable credit institutions to sell non-performing loans, particularly the information that must be provided in this context to customers;
– require institutions to apply „reasonable forbearance before foreclosure“; and
– provide rights to customers in case of the assignment of a loan to a third party
have now been incorporated in the Consumer Credit Directive of 2008. Please refer to EventID 13577 in this context for more detailed information on the amendments.