The aim is to protect low-income households from excessive indebtedness. The European Parliament decided on measures for stronger consumer protection when it comes to loans.
Consumers in the EU should be better protected when taking out loans in the future. In Strasbourg, the European Parliament voted for measures to protect against credit card debts or unsuitable loans.
Stricter rules will apply in the future, among other things, for small loans under 200 euros and so-called “buy now, pay later” offers on the Internet. For example, advertising for loans should always contain a clear statement that taking out a loan costs money. Caps on fees will also be introduced. In addition, lenders must always check the creditworthiness of customers in order to prevent consumers from becoming over-indebted.
Consumers should also have the right to withdraw from a credit agreement within 14 days without giving reasons. The aim is to protect low-income households in particular from over-indebtedness and financial difficulties.
Now the EU states still have to agree to the new version of the so-called Consumer Credit Directive, but this is considered a formality.