The Coalition for a safe, fair and inclusive consumer credit market welcomes Finance Watch and its numerous members to support advocacy effort on the Consumer credit directive currently discussed at the EU Parliament
FiInE is happy to see the growing interest of more and more NGOs to collaborate and coordinate to ensure the regulation of consumer credit guarantees the emergence of credits better adapted to their financial situation and less risky. It is now possible to improve access to credit while reducing the risks of reimbursement difficulties and overindebtedness.
Improving access to credit and qualitative inclusion: better risk assessment methods, based on an individual analysis of the borrowers’ creditworthiness are now made available thanks to open banking and artificial intelligence (AI). If regulated property, and limited to analysing the financial and/or economic data of consumers, such methods could lead to an enlarged and more adjusted credit offer (in size/in costs) that better fits the financial capacity and needs of consumers;
Increasing creditors’ financial resilience (credit institutions and other creditors) and limit risks related to the development non-performing loans (NPLs);
Shielding households from financial distress and over-indebtedness, thereby limiting social exclusion, unemployment, poverty, relationship breakdown, mental issues and an increased mortality rate which are all documented impacts of over-indebtedness.