Mr. Jan Panek

Head of Unit E.1 Consumer Policy

Directorate-General for Justice and Consumers

European Commission

18/11/19

Dear Mr. Panek,

Subject: The Evaluation of the Consumer Credit Directive

We write to you as a group of national associations representing digital consumer lenders across four EU Member States to welcome the ongoing evaluation of the Consumer Credit Directive (CCD).

We represent over 100 digital lenders in four countries, many of whom operate across as many as a dozen countries within the EU.

Around the time of the CCD’s launch, digital lenders, often serving citizens whom established financial services providers had overlooked, began by lending small sums for short terms. In the years following the introduction of the CCD in 2008 we have seen technology, consumer demand and regulation change rapidly at the Member State level.

Digital lenders, including our members, have developed into experienced and capable institutions. Our ability to lend responsibly while extending access to credit has developed in line with improved credit scoring and risk assessment.

So far Member States’ approaches to regulation have varied widely, ranging from carefully crafted, evidence-based measures seeking to optimise the regulatory framework to the introduction of snap regulations driven by immediate political pressures. Local interpretation of the CCD also varies, making it more difficult to enter into and bring competition to new markets. Today small sum, cross-border lending is almost impossible.

In this context and in light of the upcoming revision of the CCD, our members are keen to advocate for balanced European regulation that protects consumers, bolsters competition and recognises a viable lending market for smaller borrowers.

• ·We call for evidence-based and proportional regulation that accommodates sums at both ends of the CCD’s scope and short-term as well as long-term loans.

• We believe that the SECCI form has brought standardisation of information and helps comparison but 10 years on there is scope for improvement and simplification

• The CCD should reflect that cross-border access to credit requires cross-border access to bureau information for non-resident businesses.

• We call for a revised CCD to explicitly recognise the potential of and encourage the benefits of digitalisation of financial services in support of sound, consistent lending practices and access to services.

• We believe that non-bank lenders should be licensed and that regulatory regimes should support pan-European passporting.

• ·We call for the Commission to encourage regulation that combines strong consumer protection with a concern for access to viable, regulated consumer credit options.

Our members have a wealth of experience operating across European markets. They are familiar with the local interpretations of the CCD and the interplay between local regulations and the Directive. Given this experience, we would welcome opportunities to share our expertise with the Commission, for example by participating in relevant expert groups or other suitable fora.

Signed,

Jan Rasmussen

Chair -- Danish Credit Council

www.digitalelan.dk

Gints Aboltins

Chairman of the Management Board  -- Alternative Financial Services Association of Latvia

www.lafpa.lv

Jarosław Ryba

President of the Board -- The Polish Association of Loan Institutions

www.pzip.pl

Sergio Aranguren

Managing Director -- AEMIP, The Spanish Trade Association of Microlenders

www.aemip.es