This book provides a comprehensive outlook on the state and role of consumer credits in the European economy and households. It underlines the role of consumerism and digitalisation, in the framework of legislation. It covers two major turns in consumer credit evolution: the 2008 crisis and Covid pandemic. The first had socio-economic sources, the second one was an external event, but provoked important changes in consumer behaviour. Lockdowns deepened the preference for digital financial products. FinTech and BigData operators acquired broader opportunities with the development of distance services.
These new financial services need adapted legislation. The recently published project of Consumer Credits Directive covers new means of communication, such as smartphones, and extends rules to new ways of crediting, like crowdfunding.
Consumer credit availability changed the behaviour of households. The propensity of poorer households to save faded due to the ease of getting credit. However, financial insecurity during the Coronavirus pandemic made households limit credits and build precautionary savings.
Author(s): Maria Lissowska
Publisher: Palgrave Macmillan
Year: 2021
Language: English
Pages: 143
City: Cham
Acknowledgements
Contents
About the Author
List of Graphs
List of Tables
1 Introduction
2 Trends and Role of Consumer Credits in the European Economy
2.1 Statistics on the Growth of Consumer Credits in the Period 1995–2019 in EU Member States
2.2 Reasons for the Differentiated Dynamics of Consumer Credits in the Last 20 years
2.3 Role of Consumer Credits at the Macroeconomic Level in Europe
2.4 The Particular Case of Consumer Credits in Post-transition Countries
2.5 Impact of COVID-19 on Consumer Credit
2.6 Conclusion: Impact of Consumer Credits on Growth and on Stability
Bibliography
3 The Changing Landscape of Providing Consumer Credit
3.1 Factors Influencing Recent Changes in the Consumer Credit Landscape
3.2 Assessment of the Size of Digital Activity in Providing Consumer Credits
3.3 New Business Models, Opportunities and Risks for Consumers and Providers
General Factors—Technology
Legal Environment
Types of Credits and Selling Channels
Profiling and Personalization
Changes in the Process of Providing Financial Products
Consumer Protection Issues
3.4 Changes in Structures: Cooperation or Competition Between Incumbent and New Providers?
3.5 Conclusion
References
4 Regulatory Framework of the Consumer Credits Market in Europe
4.1 Legal Framework of the Functioning of the Market
4.2 Specificity of Financial Law Protecting Consumers
Reasons for Consumer Protection
Potential Reasons for Non-compliance: Balance of Costs and Benefits
4.3 European Legislation Protecting Consumers When Taking Consumer Credit
History of Consumer Credit Directive
The Contents of Consumer Credit Directive
Level of Compliance with CCD
4.4 Other Legislation Protecting European Consumers When Taking Consumer Credit
Mortgage Credits Directive
Distance Marketing of Financial Services Directive
Unfair Contract Terms Directive
Unfair Commercial Practices Directive
4.5 Further Legislative Changes
Review of CCD
Possible Review of DMFSD
Review of MCD
4.6 Conclusion
References
5 Inequalities and Use of Financial Products in Comparison with the Concept of the Life Cycle of a Household
5.1 Introduction
5.2 Basic Life Cycle Theory and Further Developments
5.3 Recent Development of Inequality and Its Impact on Financial Decisions of Households
5.4 Evidence on the Financial Decisions of Households from Eurosystem Household Finance and Consumption Survey
General Features of the Survey
Savings and Financial Assets
Credits
Back to Lifetime Hypothesis
5.5 Conclusion
References
6 Conclusion
Glossary
Index
