European Union: Reached Council and Parliament agreement Directive on consumer credit outlining consumer protection regulations

On 2 December 2022, the European Council and European Parliament reached a provisional agreement on a new Directive that repeals and replaces the 2008 directive on consumer credit agreements. The new Directive offers protection at the European level for consumers applying for credit and updates the 2008 Directive by taking into account the credit industry's increasing digitalisation. The Directive, if adopted, will ensure that consumers can make an informed choice when applying for credit and must have easy access to necessary information and the total cost of the credit. In particular, the Directive would require entities to present information clearly on digital devices. The new credit rules will also apply to loans excluded previously from the 2008 Directive, including loans below EUR 200, loans offered through crowd-lending platforms and buy-now-pay-later products. The provisional agreement is subject to final approval by the Council and European Parliament.