The European Commission published a report yesterday to the European Parliament and Council of the EU on the implementation of CCD.
The key outcomes of the evaluation fall into the following headings:
- Effectiveness – the most effective areas appear to be the rights of withdrawal, early repayment and the provisions re APR charge
- Efficiency – generally the benefits outweigh the costs of implementing the CCD
- Coherence – it’s mostly coherent and complimentary of other EU policy legislation, however, it could better be aligned with MCD and GDPR
- Relevance – it is still relevant but it may need to develop to cover new emerging consumer habits and technology
- EU Added Value – the creating of a high level of consumer protection across the EU
The report goes onto discuss the changes in the industry since CCD was implemented (e.g. technology) and sets out more details where the CCD has had a particularly positive impact. Interestingly, the report then sets out the perceived shortcomings of the CCD, namely:
- scope – some types of credit are avoiding requiring to comply
- definitions and unclear terms – which creates legal uncertainty
- information obligations and channels of communication – e.g. the use of the SECCI on modern technology platforms can cause difficulty
- creditworthiness assessment and credit databases – the CCD leads to fragmented implementation
- enforcement – disparity exists in the level of sanctions for non-compliance