The UNCTAD has revised its consumer protection guidelines especially with regard to financial services that until now had been omitted. The USA has called this premature since OECD and G20 are working on the same issues. The Draft is based on a survey in 2014 of UNCTAD with member countries in which only a few have participated.   The new draft of the principles is in... [plus...]

The Financial Conduct Authority is set to gather evidence on current trends in payment protection insurance complaints, warning that further interventions may be appropriate. The FCA will use this evidence to assess whether the current approach is meeting the objectives of securing appropriate protection for consumers and enhancing the integrity of the UK’s financial... [plus...]

End 2014, the World Bank produced a report that presents the findings of its stock-taking exercise to determine the number of countries currently capping interest rates on loans. The last financial crisis has reopened the debate on interest rate controls as a tool for consumer protection and more and more authorities have decided it is a useful tool to add to their... [plus...]

One of the arguments for Directive 2008/48/EC (CCD) was the appearance of a generally accepted interest rate for consumer credit in which the consumer can compare different offers on the market and also imagine the burden the credit puts onto his or her future. This goal, as found out in research by iff in its EU survey on insurance remuneration systems, has not been... [plus...]

Financial Service Ombudsman Report UK: Complaints to the Financial Ombudsman Service (FOS) about payday lending soared 83% last year, the third highest rise of any sector except home credit (139%) and payment protection insurance (140%). http://www.financial-ombudsman.org.uk/news/updates/annualreview-May-2013.htm Payday loans: cute and cuddly tricks can't disguise... [plus...]

ECRC co-founder Debt on our Doorstep with Damon Gibbons from the Centre for Responsible Credit launched a victory on English predatory lenders.    ECRC has been involved in the development of a legal framework for the UK consumer credit market where predatory lenders had found a vast area for exploiting the poor with interest rates far above the average on the continent.... [plus...]

As the policy research institute CEPS creates its policy task force on Consumer Credit Data Sharing, it is time for stakeholders to discuss what this means for consumer protection, potential discrimination etc. While credit bureaus are a key feature of responsible lending, how significant are the risks that certain features and characteristics of this element of the... [plus...]

To help Member States to correctly apply the Consumer Credit Directive, the Commission published on 8 May 2012 Guidelines on the application of the Directive 2008/48/EC in relation to costs and the Annual Percentage Rate of charge. The Guidelines provide comprehensive explanations how to delineate the total cost of credit, in particular to be included in the calculation of... [plus...]

Date:  15/11/2011 IP/11/1355  Commission wants better quality credit ratings MEMO/11/788: FAQ: legislative proposal on credit rating agencies (CRAs)   Internal Market Commissioner Michel Barnier said: "Ratings have a direct impact on the markets and the wider economy and thus on the prosperity of European citizens. They are not just simple opinions. And rating agencies... [plus...]

Why too much Lobbying in Brussels may have hurt the Banking Industry In 1998 the EU mandated a study from iff on Payment Protection Insurance with regard to consumer credit. The findings were alarming: up to 50% of credit cost were hidden in such factually linked contracts. Most of this money consisted out of hidden interest since it flew back to the banks in the form of... [plus...]

  Die Commerzbank darf ihren Kunden für geduldete Kontoüberziehungen über das eingeräumte Limit hinaus nicht mehr – neben erhöhten Überziehungszinsen –  5 Euro je Vorgang berechnen, berichteten wir in unseren News vom 27.08.2010. Das Oberlandesgerichts Frankfurt am Main hatte in seinem Urteil vom 4.08.2010 (AZ 23 U 157/09) die Zulassung zur Revision nicht zugelassen.... [plus...]

Der iff-Überschuldungsreport hat ergeben, dass die durchschnittliche Zeit für die Entschuldung in Deutschland nicht die gesetzlich vorgesehenen 6 Jahre sondern insgesamt 14 Jahre sind. Schuld daran sind die lange Vorlaufzeit, die Wartezeit im Verfahren, die Dauer der Wohlverhaltensperiode und vor allem der fortdauernde Eintrag in die Überschuldungskartei. Frankreich hat... [plus...]

Die Commerzbank darf ihren Kunden für geduldete Kontoüberziehungen über das eingeräumte Limit hinaus nicht mehr – neben erhöhten Überziehungszinsen –  5 Euro je Vorgang berechnen. So entschied das Oberlandesgerichts Frankfurt am Main am 4.08.2010 (AZ 23 U 157/09), nachdem die Verbraucherzentralen Hamburg und NRW auf Unterlassung geklagt hatten und bestätigte damit die... [plus...]

Risk-Based Pricing Regulations: What Creditors Need To Know www.collectionscreditrisk.com/news/risk-based-pricing-regulations-what-creditors-need-to-know-3002887-1.html Collections & Credit Risk | Wednesday, August 11, 2010 By Paul Thielemann Financial institutions have had no shortage of regulatory changes to manage in recent months. While the CARD Act and the Dodd-Frank... [plus...]

Gibt es eine Alternative zu Hans-Werner Sinn? Hans-Werner Sinn, die neo-liberale Bild-Zeitung der Wirtschaftswissenschaften im ifo-institut in München, hat in der Süddeutschen Zeitung v. 24./25.4.2010 S.28 uns auf einer ganzen Seite die griechische Krise in drei Szenarien erläutern dürfen. Dass Sinn die Mechanismen rechtfertigte, die zur Finanzkrise geführt haben, und... [plus...]

Die Arbeiterkammer Wien, eine Einrichtung, die es in Deutschland nur noch in Bremen und im Saarland gibt und die die gesamten, nicht nur die Arbeitsinteressen der Arbeitnehmer vertritt, betreut in Österreich seit langem den Bereich Verbraucherschutz. Sie hat nun eine Untersuchung über die Kreditkosten vorgelegt, die die Stiftung Warentest einmal genau studieren sollte.... [plus...]

La commission spéciale du Sénat a décidé du principe de la création d’un fichier positif des crédits aux particuliers http://www.anil.org/fileadmin/ANIL/publications/habitat_actualites/2009/HA110.pdf#page=6 FICHIER POSITIF : TARIFICATION DU RISQUE ET APPROFONDISSEMENT DE L’OFFRE DE CREDIT La commission spéciale du Sénat a décidé du principe de la création d’un fichier... [plus...]

La ECRC è rappresentata in questo gruppo con la VZBV (Verbraucherzentrale Bundesverband) e la ZPS. Tuttavia, con un numero che va da 3 a 5 rappresentanti della parte dei consumatori tra 20 esperti, la difesa del consumatore è decisamente poco considerata. In allegato potete trovare il link alla lista degli esperti. Da parte nostra siamo intenzionati a discutere questo tema... [plus...]

ECRC ist mit dem vzbv und der ZPS in dieser Expertengruppe vertreten. Aber mit nur 3 bis 5 Vertretern der Verbraucherseite unter 20 Experten, ist der Verbraucherschutz eher unterrepräsentiert. Im Anhang finden Sie den Link zur Liste der Experten. Wir wollen dieses Thema der Kreditdaten und Austausch der Datenbanken in London genau diskutieren. Gerne würden wir auch Sie im... [plus...]

2 partenaires de notre coalition ECRC sont représenté dans le group d'experts qui vien d'être selectionné. Avec seulement 3 représentant des consommateurs sur 20 experts, y aura-t-il une forte protection du consommateur ? Ci-dessous la liste des experts, nous les invitons à se joindre à nous lors de nos débats à Londres le 14 novembre dans les discussions de l'atelier 9. ... [plus...]

2 of ECRC’s active partners are represented in the Expert Group on Credit Histories. With only 3 consumer representatives and 2 data protection experts out of 20 experts, will they be able to ensure a high level of consumer protection in this area? Below the press release and the list of experts. We welcome these members to come to the conference in London to discuss the... [plus...]

Commissioned by the Federation of German Consumer Organisations (vzbv), below is an abstract of the German study “Scoring tested in practice” by Dieter Korczak & Michael Wilken from the GP Forschungsgruppe. The report attached below is itself in German and goes under the title “Scoring im Praxistest: Aussagekraft uns Anwendung von Scoringverfahren in der Kreditvergabe und... [plus...]

(Czech Business Weekly - Prague,Czech Republic) Czech Republic provider run credit register says 30% growth in consumer lending only a problem because consumers lack responsibility and financial literacy “It is up to clients to choose what is more suitable for them from the wide and colorful offering. For Solus, fulfilling the code of ethics is rather critical. . The... [plus...]

W4: SCORING AND SOCIAL DISCRIMINATION IN CREDIT CONTRACTS The issue of discrimination and credit scores has several aspects, each raising different problems: (1) Minorities and immigrants are disproportionately targeted by sellers of risky financial services products with a high failure rate, thus putting downward pressure on their credit scores. (2) Credit... [plus...]

BRUSSELS 2007! Workshop 4: "Scoring" Statements from Melina Mouzouraki (EKPIZO, Greece, Chair); George Wilkinson (Eurofinas/GWA); Fréderic Rottier (Observatoire des Crédits et de l'Endettement, Belgium); Joop Lobstein (BKR, Netherlands) [plus...]

W4: SCORING E DISCRIMINAZIONE SOCIALE NEI CONTRATTI DI CREDITO Melina Mouzouraki (EKPIZO, Greece, Chair); Mike Bradford (Experian); George Wilkinson (Eurofinas/GWA); Hubert Van Tol (NCRC, USA); Fréderic Rottier (Observatoire des Crédits et de l'Endettement, Belgium); Joop Lobstein (BKR, Netherlands) Venerdi Septiembre 14 15:30. Lo scoring ha portato a dei cambiamenti... [plus...]

W4: SCORING AND SOCIAL DISCRIMINATION IN CREDIT CONTRACTS Melina Mouzouraki (EKPIZO, Greece, Chair); Mike Bradford (Experian); George Wilkinson (Eurofinas/GWA); Hubert Van Tol (NCRC, USA); Fréderic Rottier (Observatoire des Crédits et de l'Endettement, Belgium); Joop Lobstein (BKR, Netherlands) Held on Friday Sept14th at 3.30pm, concurrent workshop is W3 on Financial... [plus...]

W4: SCORING AND SOCIAL DISCRIMINATION IN CREDIT CONTRACTS George Wilkinson (George Wilkinson associates, Independent Credit Industry Specialist) THE LENDERS’ DILEMMA • LENDERS have: – high operating costs (branch/staff/IT/etc) – unwelcome bad debt losses (significant?) • CREDIT DECISIONS need to be optimal: – declining good payers makes no sense – accepting bad payers... [plus...]

W2: CREDIT CARD CREDIT - AMERICAN OVER-INDEBTEDNESS A EUROPEAN FUTURE? Achim Tiffe (iff, Chair); Matthew Lee (Fair Finance Watch, USA); Damon Gibbons (DOOD, UK); Paolo Landi (Adiconsum, Italy); Manfred Westphal (vzbv, Germany) Held on Friday Sept14th at 2pm, concurrent workshop is W1 on Overindebtedness and Bankruptcy. Credit cards allow purchases, cash advances, and... [plus...]

SCORING: NICHT NUR DIE ARMEN ZAHLEN MEHR SONDERN AUCH WEN DIE SCOREWERTE ARM RECHNEN. In einem Zeitungsinterview vom 21.10.2006 hatte der Leiter des iff folgende Ausführung zur sozialen Diskriminierung durch Scoring gemacht: „Wer eine geringe Aussicht auf ein stabiles Vermögen und Einkommen hat, muss für dieselbe Leistung mehr zahlen, und zwar viel mehr, als das Risiko... [plus...]

"The four Federal financial institution of the USA regulatory agencies are hosting an interagency national conference for Federally-insured minority depository institutions (MDIs) on the challenges and issues facing the MDI segment of the banking industry. The conference will be held at the Miami Beach Resort and Spa in Miami Beach, Florida, from July 31- August 2, 2007. ... [plus...]

ECRC wird auf seiner Konferenz in Brüssel das Thema "Scoring" auf die Tagesordnung setzen. Bereits zugesagt hat die europäische Vereinigung der Konsumentenkreditinstitute, der größte private Anbieter von Scoring und Vertreter der Koalitionspartner für Verantwortung im Kredit aus Spanien und Griechenland. Eingeladen wurde auch die SCHUFA und der Bundesdatenschutzbeauftrage.... [plus...]

BERLIN CONFERENCE OF THE LAW & SOCIETY ASS. The Berlin Conference of scholars debating Overindebtedness in the three worlds is approaching. As the facinating papers that will be presented at this conference are still internal we cannot make them publicly available. Their contents can be guessed through the programme whose latest draft we just published. Gregory Squires... [plus...]

Le Figaro - Publié le 16 avril 2007 LA CNIL REJETTE LE PROJET DE FICHIER DES CREDITS LE MEDIATEUR DE LA REPUBLIQUE Y EST EN REVANCHE FAVORABLE. Le fichier centralisé des crédits est un serpent de mer qui refait surface. La dernière proposition pour une centrale des prêts accordés aux particuliers, déposée par la société Experian, a été rejetée la semaine dernière par... [plus...]

ECRC’s founding Dutch member Harro Norder from NVVK (Dutch council of municipal banks) shares with us the latest initiatives he and his bank have led in their efforts to make Dutch credit markets more socially responsible. LIMITED INTEREST RATES Over-indebtedness is strongly related to small loans with high interest rates. Financing cars, home video sets and so one are... [plus...]

In der Diskussion mit Verbraucherverbänden wird von Bankenseite immer wieder angedeutet, ihre seit ein paar Jahren erfolgende willkürliche Preisgestaltung, wonach nur noch "Zinssätze ab 4 %" angeboten werden und der Kunde, nachdem er alles für den Kreditantrag bereits getan hat, dann 16% im Vertrag liest, sei eine Folge der Vorschriften von Basel II. Vor allem bei... [plus...]

SURENDETTEMENT : UN FICHIER DES EMPRUNTEURS TOUJOURS A L'ETUDE (Le Monde, 16.12.06) Faut-il créer un fichier des emprunteurs pour leur éviter de basculer dans le surendettement ? Cette question, récurrente depuis une quinzaine d'années, vient de resurgir à la faveur d'une proposition de loi défendue par les députés UDF Jean-Christophe Lagarde (Seine-Saint-Denis) et Hervé... [plus...]

Title: “Consumer Credit: Profiting from Despair”. In this article Wirtschaftswoche describes how banks in Germany have started a campaign where the disclosed interest rates have nothing to do with what consumers really have to pay, how banks sell credit which already at the beginning creates overindebted clients and how insurance premiums combined with a credit contract... [plus...]

Artikel des Monats: „Geschäft mit der Not: Verbraucherkredite.“ Melanie Bergermann von der Zeitung Wirtschaftswoche beschreibt die drei Grundübel des Verbraucherkreditmarktes: Wucherpreise trotz Lockvogelangeboten für Risikokunden, Überschuldung schon bei Kreditabschluss, Ende des Preiswettbewerbs und Restschuldversicherungsprämien als versteckte Wucherzinsen der Banken. ... [plus...]

Suivant pour l'essentiel les conclusions présentées le 29 juin 2006 par l'avocat général Geelhoed dans l'affaire C-238/05 (ASNEF-EQUIFAX, Servicios de Información sobre Solvencia y Crédito, SL et Administración del Estado contre Asociación de Usuarios de Servicios Bancarios (AUSBANC)) relative à une demande de décision préjudicielle déposée par le Tribunal Supremo... [plus...]

INTRODUCTION Until recently the price of consumer credit (i.e. the interest rate) was being determined by objective parameters. There was a one and only interest rate per product. Since the mid-nineties there was a change in the USA, by which the interest rate varied according to the risk associated with the specific credit. This practice is currently being gradually... [plus...]

The DTI consultation paper is designed to provide a starting point for consultation with the financial services industry and consumer groups about extending by 10% the number of bank accounts covered. As part of the government’s over-indebtedness strategy, the DTI wants lenders, where appropriate, to share relevant data about the amount of credit that is available to an... [plus...]

A Japanese bar association has asked partners in Germany to comment on the annexed graphics showing that interest rate disclosure in Germany would only cover about half of the true cost of the credit. They got these graphs from the UK Department of Trade and Industry (DTI). While the UK is not represented in the graph, France and Germany are once again taken as bad... [plus...]

A Konferenz zur verantwortlichen Kreditvergabe in Brüssel am 27./28. April Ende April hat die Konferenz des Instituts für Finanzdienstleistungen zur verantwortlichen Kreditvergabe mit 150 Teilnehmern aus 26 Staaten stattgefunden. Ziel war der Austausch von Expertenmeinungen zum Verbraucherkredit. Dabei wurden in neun Workshops zu den Themen wie Wucher, risk-based pricing... [plus...]

A key element in the ability of financial institutions to charge different prices depending on the differing levels of risk is the availability of extensive information on the credit histories of potential borrowers. In the U.S., credit reporting agencies have extensive information, both positive and negative, about most aspects of individual credit histories. Credit... [plus...]

INTRODUCTORY REMARKS (By Melina Mouzouraki, Attorney of law, Legal Adviser of EKPIZO Consumers’ Association, and chairperson of the workshop) Risk-based pricing stands as the modern tool to restrict the impact of unsafe claims to the level of the interest rate. The risk of non-payment is individualized on the basis of the characteristics (in market terms credit... [plus...]

FINANCIAL EDUCATION & BETTER ACCESS TO ADEQUATE FINANCIAL SERVICES People experiencing poverty and social exclusion usually have a limited or no access to financial services. Adequate financial services that are handled with the necessary social responsibility by the service providers are missing in most European countries. This objective is researched and analyzed by a... [plus...]

"BEST PRACTICES OF CONSUMER CREDIT" REPORTING CREDIT REFERENCE AGENCIES – THE CASE OF NEW EU MEMBER STATES AND OTHER SOUTH-EAST EUROPEAN COUNTRIES by Tatjana Jovanic Lecturer University of Belgrade, School of Law ABSTRACT Credit Reference agencies are databases of information on borrowers in a financial system which creditors use as a risk management tool in order to... [plus...]

Volkskredietbank - a General Strategic Analysis In this analytical paper Harro Norder explains the history and future strategic direction of the Volkskredietbank in the Netherlands. Through the historical context, the reason for establishing the bank, the type of organisation it is and its strategic analysis, the resulting position of the VKB shows it to be highly... [plus...]

TEST-ACHATS est une ASSOCIATION BELGE DE DÉFENSE DE CONSOMMATEURS et à ce titre, elle s'intéresse particulièrement à la question de la responsabilité du professionnel lors de l'octroi du crédit. Notre LOI du 12 juin 1991 relative au crédit à la consommation met certaines obligations à charge du professionnel; elle se veut particulièrement PROTECTRICE DES INTÉRÊTS DU... [plus...]