CCPC submission on the General Scheme of the Consumer Protection (Regulation of Retail Credit Firms) Bill 2019

The Competition and Consumer Protection Commission (CCPC) welcomes the publication of the General Scheme of the Consumer Protection (Regulation of Retail Credit Firms) Bill 2019 (‘the General Scheme’) and the opportunity to make a number of observations on its contents to the Joint Oireachtas Committee.

The CCPC is very supportive of the proposals in the General Scheme that seek to address current and potential future lacunae in the regulation of consumer credit. The application of the Consumer Protection Code to a broader definition of consumer credit, particularly in relation to non-cash loans and in circumstances where credit is not provided directly to a consumer should afford important additional protections. Such protections are timely given the evolution of some consumer credit products which have become more complex and differentiated from the traditional consumer credit models. In particular, the provisions of the Consumer Protection Code in relation to “Knowing the consumer and suitability” are of particular relevance in credit markets.

The CCPC notes that the European Commission has proposed a review of Directive 2008/48/EC (‘the Consumer Credit Directive’) in the context of the New Consumer Agenda. Based on the outcome of an evaluation of the Consumer Credit Directive, the review will seek to ensure better consumer information and understanding of consumer credits, taking into account the digitalisation in the provision of such products. The General Scheme would appear to be aligned with the intention of the review of the Consumer Credit Directive to ensure a more comprehensive set of protections for consumers engaging with credit providers.