Crowdfunding credit services under the new proposal for a new Directive on Consumer Credits

Abstract

ABSTRACT The article analyses some of the core rules suggested for crowdfunding credit services in the proposal of the new Consumer Credit Directive, concentrating on the information obligations towards consumers, the obligation of creditworthiness assessment, and the newly introduced principle of non-discrimination. It concludes that whereas the suggested rules would help to raise the consumer protection level in the EU, it does not adequately address all the risks created by these services nor provide the consumers borrowing over such platforms with the same level of protection as consumers taking out ‘normal’ consumer credit. Placing information obligations and the obligation to assess consumers’ creditworthiness to crowdfunding credit services providers is justified due to the gatekeeper position of the platforms. The introduction of the non-discrimination principle, however, would create an obligation to contract for the crowdfunding credit services providers and expose them to the risks of litigation in all Member States.