Consumer Credit Directive Consumer Credit Directive Consumer Credit Directive

Directive 2008/48/EC (hereinafter “the Consumer Credit Directive”) was transposed into Irish law under the European Communities (Consumer Credit Agreements) Regulations 2010 (hereinafter “the Regulations”), writes Gillian Kelly of our Risk Consulting practice.

The Regulations came into effect on 11 June 2010 and, broadly, apply to credit agreements with a value of €200 – €75,000, not secured by a mortgage or not for the purpose of acquiring land / buildings. The Regulations introduced the following benefits for consumers:

• Standardised pre-contractual information and standardised information to be contained in credit agreements; 
• Assumptions and guidance on the calculation of the Annual Percentage Rate of charge (“APR”); 
• The right to be informed of any creditworthiness checks performed; 
• Transparency in the fees paid to credit intermediaries; 
• Maximum limits for early repayment fees and a €10,000 12-month threshold, under which early repayment fees may not be charged; and 
• A 14-day cooling-off period. 

Amendments came into effect on 1 January 2013 which provided additional assumptions for the calculation of APR.

In 2020 the European Commission (hereinafter “the Commission”) launched a public consultation relating to its consumer agenda, including a review of the Consumer Credit Directive (“CCD”). An impact assessment was completed by the Commission which identified a number of areas of improvement. In the document below we set out a summary of the Commission’s findings and the proposed changes as a result.

For further information on this directive, please contact Gillian Kelly of our Risk Consulting practice.