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Consumer Credit - European Directive

Current position

The Consumer Credit Directive was adopted by the European Commission in May 2008, with an ensuing date for completing the transposition set for June 2010 for all member states. This Directive replaces the 1986 Consumer Credit Directive and amendments made to this Directive. The new CCD takes a maximum harmonisation approach and is intended to harmonise key aspects of consumer credit legislation in Member States as part of the objective of creating a common credit market across the European Union. At the same time, the Directive is also intended to maintain high levels of consumer protection.

CCD Public Consultation

BERR launched a public consultation on proposals for the CCD implementation in April 2009 and responses were collected until 10 June 2009. For more information view the CCD consultation page.

BIS is now inviting comments on draft proposals for the regulations implementing the Consumer Credit Directive.

The third edition of the CCD Bulletin is also now available, with more information relating to the implementation.

Earlier Info

December 2008, following a string of meetings and exchanges, the expert working groups were drawn to a close in late November last year. The groups have contributed greatly to understanding the implications of the new Directive and how it will impact on existing credit legislation in the UK. BERR issued closure points for each of these groups in January 2009 (see second CCD bulletin), which sum up the position for the work streams.

January 2008, the European Parliament reached an agreement on a compromise text (see related Documents) with the Council following the political agreement reached in May 2007. A number of amendments were made by the Parliament. The text is expected to be formally adopted during Spring/Summer 2008, at which point each Member State will have two years to implement the Directive into national law.

September 2007, following political agreement reached in May, the proposal was formally transmitted to the European Parliament for its second reading. This is expected to last until January 2008. Depending on progress after that, the proposal could be formally adopted during Spring/Summer 2008, at which point each Member State will have two years to implement the Directive into national law.

October 2005 the Commission published a second revised text of the directive. We issued a supplementary consultation on this in March 2006, along with a partial Regulatory Impact Assessment. The Government response to the consultation was published in November 2006.

October 2004 the Commission adopted an amended proposal for a Directive. The amended proposal contains the European Commission's comments on the amendments adopted by the European Parliament in April 2004. Taking account of the amended proposal, the Presidency will now draft a text for discussion in the Council Working Group. We consulted about this in February 2005.

April 2004 the European Parliament adopted its first reading position on the Consumer Credit Directive. The European Parliament has substantially redrafted the Directive, in particular they have altered the scope of the Directive and the level of harmonisation. Whereas the Commission had proposed total harmonisation, the European Parliament prefers ‘optimum harmonisation’ which in effect means that Member State would retain the right to go further than the standards laid down in the Directive. However, the rules on APR would be subject to full harmonisation in order to facilitate the internal market.

September 2002 the Commission published a proposal for a new Directive on consumer Credit to update and expand the EU wide rules on consumer credit to take on board modern forms of consumer credit and to facilitate the internal market in this sector.

If you would like to be kept up-to-date about negotiations on the EC Consumer Credit Directive please inform us by responding to: tord.johnsen@berr.gsi.gov.uk