The consumer protection association BEUC criticizes the lack of ambition in the reform. In view of the currently high prices in everyday life, people are dependent on “solid controls”.

In the future, consumers should be better protected when they borrow money online or shop on credit online. The EU countries agreed on a common negotiating position for new rules for consumer credit.

This is intended to make information about loans particularly clear and understandable. However, the position of the EU countries weakens parts of the EU Commission’s original legislative proposal from June.

Better credit checks

The Commission’s proposal for consumer credit agreements is about the fact that existing protective rules should also apply to loans under 200 euros as well as to leasing agreements and overdrafts. However, the EU countries want to exempt some forms of credit from the rules, such as payment deferrals or leases without an obligation to buy. At the same time, the creditworthiness of consumers should be better controlled.

Consumer advocates are critical

The consumer protection association BEUC criticized that the EU states had a low level of ambition in the reform. “In times of high energy and food prices, consumers are increasingly taking out loans to cover their everyday expenses. Without solid controls, this can quickly lead to a debt spiral,” said BEUC boss Monique Goyens.

The EU Parliament still has to decide its position on the regulation before it can negotiate with the EU countries and the regulation can come into force.