Moneylenders
25.2.2021
Question for written answer E-001129/2021
to the Commission
Rule 138
Chris MacManus (The Left)
In a recent report, the non-governmental organisation Finance Watch examined the implementation of the Consumer Credit Directive (CCD). The report is entitled ‘Consumer credit market malpractices uncovered. An in-depth study of consumer credit markets in Spain, Romania and Ireland and what it means for the Consumer Credit Directive review’[1].
The report made many useful recommendations, including one to ‘introduce detailed rules in the CCD concerning which specific information should be used to allow for a creditworthiness assessment. The assessment should be based only on information needed to perform an adequate personal budget analysis (data on income and expenditures), including all ongoing credit and debts’.
The report states that a major moneylender in Ireland has admitted to using social media to ‘assist with credit decisioning’[2].
- 1.Does the Commission believe that the use of social media to assess credit worthiness falls within the letter or spirit of the CCD?
- 2.In its review of the CCD, will it ensure that this issue is resolved by banning the use of social media to assess credit worthiness?