Responsible Credit

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Responsible Credit 2008, the 8th International Conference on Financial Services, organised by ECRC, NCRC, and UK partner, Inclusion, is now open for bookings. The conference will take place in London's Covent Garden on 13th and 14th November, and bookings are being taken through Inclusion's website at the link below. A draft programme is also attached below. Please... [more...]

Two articles below show the renewed interest by regulators in responsible credit. CALL FOR ACTION ON PAYDAY LOANS (BBC, live interview with Damon Gibbons on Saturday 26th July) Debt advice groups are calling for urgent action over payday loans that charge extremely high interest rates. They want the market regulator to make lenders behave responsibly, as... [more...]

The Office of Fair Trading in the UK has announced that it is to start a year long project investigating responsibility in lending in response to calls from ECRC member, Debt on our Doorstep. The announcement followed national media attention in the UK concerning payday loans, with the BBC broadcasting a live interview with Damon Gibbons on Saturday 26th July. A link... [more...]

Hi -- even during summer subprime melt-down here in the U.S., big subprimers HSBC (Household) and AIG continue to grow overseas. And in Australia, moves to make credit histories more detailed. One day, the U.S. merger market will revive... Stay cool, -Matthew Matthew Lee, Esq., Executive Director Inner City Press / Fair Finance Watch NCRC Board member - Global - NCRC... [more...]

The EU-sponsored Institute for Public Administration invites senior public advisors, judges, officials and private bankers to a two day seminar in October 2008 in Luxembourg. According to its organisers, "the seminar is aimed at EU officials, national civil servants, lawyers and other professionals, in particular from private banking and financial institutions or public... [more...]

WHAT DOES FINANCIAL EXCLUSION MEAN - A CRITICAL ASSESSMENT OF THE UNDERLYING APPROACH The project on financial inclusion which DG Social Policy mandated to a group of people from the debt advice asked the question how exclusion from financial services could be overcome. The summary of their findings as well as the study itself is annexed. The conclusions are... [more...]

The Age - Melbourne,Victoria,Australia, Annabel Stafford, July 4, 2008 DEAL ON CONSUMER CREDIT DODGY pay-day lenders and unscrupulous companies that hand credit cards to teenagers may soon face tougher regulation after state and territory leaders agreed to centralise the responsibility for regulating consumer credit in Canberra. The Council of Australian... [more...]

FLAC (Free Legal Advice Centres) today backed calls by the European Coalition for Responsible Credit (ECRC) in its ‘Declaration on the Credit Crisis’ for the EU and national governments to restore confidence and stability in the financial markets and to protect consumers from the consequences of the irresponsible lending. The declaration, from a coalition of... [more...]

Following two month of intensive world wide discussions and collaboration, the European Coalition for Responsible Credit (ECRC) as well as organisations from all over Europe, North- and South America make the annexed declaration on the subprime crisis public today. In this declaration the initiators point out that it is not enough to deal with the rescue of banks,... [more...]

Below are some views from BEUC on the importance of financial services for consumers including a list of proposals in this area from their 100 concrete proposals for consumers made to the French Presidency (see document attached in French only), as well as the views from the FBF on the five key areas of focus they have identified for the Presidency. ----------- ... [more...]

There are striking similarities between the activities of DG Market of the European Commission and Capital Hill as the reactions to the subprime crisis is concerned. While many including the Head of the Federal Reserve think it is time to educate bankers to be more cautious, provide more responsible credit and refrain from profiting from the needs of poor people an... [more...]

The seven ECRC Principles of Responsible Credit who have been signed by organisations all over the world are more and more taken into account in public discussions. Still in 2008 the first CSR-Rating concerning banks will be based on these principles and the respective bank behaviour. The principles are all availabe on this website at the below mentioned places. They... [more...]

(NB: The Competition Commission is an independent public body which conducts in-depth inquiries into mergers, markets and the regulation of the major regulated industries). 05 June 2008 PAYMENT PROTECTION INSURANCE (PPI): PROVISIONAL FINDINGS PUBLISHED. Companies face little or no competition when selling Payment Protection Insurance (PPI) to their credit customers... [more...]

Treasury website: GREEN PAPER ON FINANCIAL SERVICES AND CREDIT REFORM Date: Tuesday, 3 June 2008 ABSTRACT: Green Paper on Financial Services and Credit Reform – Improving, Simplifying and Standardising Financial Services and Credit Regulation The purpose of this Green Paper is to consult stakeholders about the following range of financial services and credit... [more...]

Financial Sector meets Client Sector - For the third time German stakeholders in financial services will meet in Hamburg and discuss issues like financial education, the international credit crisis, risk management in consumer credit contracts, the future of debt advice, investors' prpotection rules, the implementation of the EU Consumer Credit Directive 2008, protected... [more...]

Find annexed the paper Bob Schmitz from the Luxembourg Consumer Association a partner of ECRC has presented to the European Parliament with regard to the efforts of the Eu-Commission in Financial Education or as officials and some banks prefer Financial Literacy or even Financial Capability: 1. Consumer empowerment via information and education – serious limits We... [more...]

Press release from the FSA: FSA LAUNCHES DEBATE ON INCREASING TRANSPARENCY IN REGULATION The Financial Services Authority (FSA) has today published a discussion paper which explores the creation of a framework for determining what further information the regulator might publish about firms and industry sectors. The FSA recognises the importance of transparency and... [more...]

Almost half of citizens in the new EU member states have no bank account says the European Commission-funded report published yesterday. Should there be a right for all citizens to access basic financial services?. The credit crunch crisis has placed financial education and inclusion higher on the EU political agenda. ECRC wants to make sure responsible credit is also... [more...]

NOTE: the impacts of the U.S. subprime implosion continue to spread, including in Africa, where as reflected below, lending is decreasing (but unlike in the U.S. right now, mergers continue). Meanwhile, Citigroup for example has re-affirmed its commitment to consumer finance in emerging markets like India, see below, while it has laid off subprime employees in the UK --... [more...]

A VIDEO ABOUT THE SUBPRIME CRISIS In a video which has already been viewd by close to two million Internet users two actors playing an investment banker and a journalist in a tv interview explain the credit crisis in the UK. This funny production starts with a finance company that sells houses ("just before they fall apart") to poor people in the US with a mortgage that... [more...]

OECD/US TREASURY INTERNATIONAL CONFERENCE ON FINANCIAL EDUCATION 7-8 May 2008 - Washington DC, USA The high-level international conference is co-organised by the OECD, as part of its on-going project on financial education, and the US Department of the Treasury. The main objective of this conference is to seek to advance and elevate dialogue on financial education in... [more...]

Below is a list of upcoming conferences: One on Financial Inclusion, one on Microfinance, and one on Ethics in finance ------------ "FINANCIAL INCLUSION: IMPROVING ACCESS TO BASIC FINANCIAL SERVICES" Dear Madam/Sir, We are pleased to invite you to a high-level conference organised by the European Commission on "Financial inclusion: improving access to basic... [more...]

Our 8th international conference on financial services will take place in London, at the New Connaught Rooms, Covent Garden, London on 13th - 14th November 2008, and will bring together bankers, financial service providers, welfare and consumer organisations, money and debt advisors, policy makers, government officials, and personalities from the world of academia and the... [more...]

Our Finnish partner gives us all a clear example of the sort of activities and newsletters which we should all be trying to report make to each other. The Finnish Consumer Agency's Newsletter 3/2008 has the theme: Financial Services. The edition reports on: MARKETING: The importance of making sure that contractual terms are clear and advertising is straightforward, that... [more...]

WEATHER THE PERFECT STORM (www.theage.com.au, Kelsey Munro, April 23, 2008) High interest rates and faltering property values in Australia and recession in the US are creating "the perfect storm" for debt-laden consumers, according to the author of a research paper on mortgage stress. Fujitsu Consulting and JP Morgan's latest data predict that almost 1 million... [more...]

CONSUMER INSURANCE SEEN AS SCAM, SAYS JUDGE (Dispatch Online - South Africa) CONSUMER credit insurance in SA has a bad name and is seen by many as a scam or a rip-off, Judge Peet Nienaber noted in a report on an inquiry into the industry released yesterday. However, not all the reasons for this are necessarily valid, and it is always necessary to distinguish between... [more...]

WORLD SOCIAL FINANCE SUMMIT, QUEBEC 5-6 JUNE 2008. FINAL PROGRAMME The World Social Finance Summit 2008 organised by INAISE (International Association of social finance organisations) and Caisse d’économie Solidaire Desjardins, will take place in Quebec on 5 & 6 June. Exchanges, mutual linkage and support, speaking out, innovation and acting together are at the... [more...]

Ci dessous un courriel de Bob Schmitz de l'ULC transmit au Commissaire Mme Kuneva. Son commentaire est attaché en pièce jointe. En page 2, dernier paragraphe, son résumé de ce qu'il considère comme un important arrêt récent de la CJCE en matière de commerce électronique confirmant que le pays de réception 'garde largement la main' ... Dear Commissioner Thank you... [more...]

Below is the email from Bob Schmitz to Commissioner Kuneva, and an attachment of ULC’s updated comments (in French) with reference to a court ruling by the European Court of Justice (ECJ) on e-commerce confirming that the host country keeps “the stronger hand” Dear Commissioner Thank you very much for yesterday's fruitful discussions in Luxembourg. One of the... [more...]

POSITION ADVERTISED: Professor of Law and Director Centre for Credit and Consumer Law, Griffith University Australia Griffith University (Brisbane, Australia) has recently advertised the following position: Professor of Law and Director of the Centre for Credit and Consumer Law. The position advertisement includes the following: "The Griffith Law School is... [more...]

[ECRC has taken the following text from the Websites of the European Parliament January 16. The Council adopted this Directive without further changes on April 9, 2008. It is therefore the final text. We still wait for the Commission to publish the official version and give it a number.] Consumer Credit Directive 2008 (Adopted by the Council on April 7, 2008) ... [more...]

'SUB SUB SUB SUBPRIME' BORROWERS 100 MILLION STRONG WORLDWIDE AND GROWING (By Jamie Zimmerman, April 17, 2008, New America Foundation - Washington DC USA) It's all we hear about these days: The U.S. subprime mortgage bubble -- created by poor and at times predatory lending practices and lax banking regulation and creative investment products -- has burst. Of the... [more...]

US BANKS EXTEND PRICIER LOANS TO MINORITIES STUDY TUE APR 8, 2008 1:05AM ED WASHINGTON (Reuters) - The largest U.S. banks gave expensive subprime mortgages twice as often to minorities than whites last year, according to a study of bank loan data released by a fair lending activist group on Monday. The study, conducted by Inner City Press/Fair Finance Watch found... [more...]

Usurious fees can still be hidden in insurance products without disclosure in the Interest Rate of the Credit. As the request for such usurious insurance contracts has to be made before the acceptance of the credit by the bank it is rather ridiculous that the Directive call such contracts an expression of the free will of the consumer. Variable rate credit which helped... [more...]

Below some extracts from the final booklet (Nov 2007) and a link to the UK Government Business department website and the booklet. It mentions the need for national stakeholders (English in this case, but it applies to all other nationals) to get involved in international dialogue with its European peers in order to make a real difference in the area of consumer... [more...]

Below is the British Bankers' Association (BBA) press release announcing the New Banking Code and the new provisions. NEW BANKING CODE LAUNCHED 31/03/2008 The new Banking Code and Business Banking Code contain an enhanced promise by banks and building societies to treat customers fairly and reasonably. That promise is supported by eight key commitments and the... [more...]

Harro Norder, Director of Volkskredietbank voor Noord-Oost Groningen (VKB), and member of the Dutch association of municipal banks (NVVK) announces that his bank now has its website translated into English. Simply click on the button on the top of the site for translation from englisch into dutch (or viceversa). [more...]

CONSEIL AUX ACCEDANTS : NOUVEAU CONTEXTE, DOCTRINE RENOUVELEE L’attrait pour l’accession à la propriété ne se dément pas. Les ménages sont parfois freinés dans la réalisation de leur projet par les contraintes économiques, mais les ADIL observent que leur réaction majoritaire est plutôt d’accepter des taux d’effort de plus en plus élevés sur de plus longues durées. ... [more...]

Good news: New studies on social contract law are beginning in the UK. Please find attached a call for papers for a very promising conference in Durham, "Conceptualising Unconscionability in Europe", on 8-9 September 2008. This conference is organised by Dr. Mel Kenny (University of Durham). Mel Kenny was a Marie Curie Fellow at the University of Bremen, within the... [more...]

THE EU-PROJECT The EU-Commission finances a project to build a European Contract Code which will be primarily based on international sales law principles and the form consumer protection as information and competition law has got within the EU-Directives. While in practice workers' and tenants' protection as well as debtors' protection has since long left the area of... [more...]

The National Community Reinvestment Coalition will be holding its annual event next week. ECRC partners that would like to attend have been invited by NCRC to sign up for a sponsorship. The 3 day event is a great opportunity to not only hear experts, including Fed Chairman Bernanke, but receive training in community building and how to enhance the effectiveness of... [more...]

The conference will take place in German, but we may be able to cater for those English or French speaking persons wishing to follow discussions. On the 6th and 7th of June 2008, in Hamburg, the ECRC and the Global CRC will be co-sponsoring the annual German national responsible credit conference organised by the institute for financial services. Alongside host... [more...]

The Comptroller of the Currency will ensure that data be provided to them on all mortgage lending (and will include all home equity loans in the future as well).This will complement the data received on only subprime lending which will be collected via the HOPE NOW alliance. Banks have cooperated, and hopefully unnecessary foreclosures will be avoided as the OCC and other... [more...]

With the Annual Budget Law the Italian Consumer Organisations could win a new tool which could be a mighty instrument to control banks and financial suppliers. For the following translation we have tried out google translate (see link below) and would welcome if a native speaker could bring it into an improved form. The Italian text is availabe at the link below. ... [more...]

Dear colleagues and friends, To celebrate iff’s 20th anniversary, last year we published the New Year Newsletters from the previous 14 years in a collection entitled "Using Money: 20 years institute of financial services”. Printing this book in English as well as in German should have really sufficed. Even reflection is not immune from the infirmities of old-age,... [more...]

European Parliament legislative resolution of 16 January 2008 on the common position adopted by the Council with a view to the adoption of a directive of the European Parliament and of the Council on credit agreements for consumers and repealing Council Directive 87/102/EEC (9948/2/2007 – C6-0315/2007 – 2002/0222(COD)) (Codecision procedure: second reading) ... [more...]

The Ugly Side of microlending as seen in Mexico, reported in Business Week HOW BIG MEXICAN BANKS PROFIT AS MANY POOR BORROWERS GET TRAPPED IN A MAZE OF DEBT (Business Week 13 Dec07, by Keith Epstein and Geri Smith) In a gleaming office tower in Mexico City secured with retinal scanners, bulletproof glass, and armed guards, dozens of workers in white lab coats dart... [more...]

The Comptroller of the Currency has urged Congress to restore the original scope of the public welfare investment authority of national banks. It raises questions such as should the Community Reinvestment Act be broadened to cover non-banks too, especially since they have been responsible for over half of subprime mortgages leading to the crisis. One argument is that... [more...]

Commissioned by the Federation of German Consumer Organisations (vzbv), below is an abstract of the German study “Scoring tested in practice” by Dieter Korczak & Michael Wilken from the GP Forschungsgruppe. The report attached below is itself in German and goes under the title “Scoring im Praxistest: Aussagekraft uns Anwendung von Scoringverfahren in der Kreditvergabe und... [more...]

GERMAN WELFARE RECIPIENTS AND US SUPRIME CRISIS American subprime lenders sold their high interest portfolios of mortage loans to investors all over the world who like the Saxon German Public Bank (SachsenLB) even borrowed about 20 billion € from other banks to buy these papers with a high yield so that they could pretend profitability. The fantastic dream of country... [more...]

Microfinance needs a discussion. The German Kreditanstalt für Wiederaufbau and the Frankfrut Based Finance Institute sponsored by major banks will hold a conference in Frankfurt Germany on February 22, 2008 which will discuss "responsible finance" In this they want to address Microfinance which is headed by the following question. "With the growing diversity of the... [more...]

European Parliament has passed the New Consumer Credit Directive. It will now only formally go back to the Council to be agreed. EARLY REPAYMENT FEES The Socialist Deputies of the Parliament as well as consumer organisations managed half victory in early repayment fees. Yes, we will have such fees in future. Getting rid of one's debt will be a costly business and... [more...]

BEUC summary: On the 18th December, the European Commission published the White paper on mortgage credit. In our view, the result is disappointing. As far as a Mortgage directive is concerned, the white paper concludes that yet another impact assessment is needed because implementation cost might be significant. At the same time, the executive summary confirms that APRC... [more...]

EUROPEAN PARLIAMENT PRESS RELEASE: CONSUMER CREDIT LEGISLATION HEADS FOR PARLIAMENTARY VOTE (14-01-2008 - 11:53) Two-thirds of Europeans use credit to buy things like TVs and washing machines. Most credit loans are easy to get and come from national companies. On Tuesday MEPs will discuss proposals to facilitate credit across EU borders, making it easier for... [more...]

The ECRC, BEUC, ZPS and MIPOR are clearly all concerned by the implications of the latest CCD going to vote at the second reading in parliament on January 15th 2008 on early repayment penalty fees which will weaken protection in several member states. We can expect a busy start to the new year so lets make sure our partners are ready to react ahead of the plenary sessions... [more...]

This end of year Newsletter aims to update ECRC members and partners about recent discussions, initiatives and developments affecting or potentially being of interest to stakeholders of credit and debt in Europe. It also informs on the successful international conference held in Brussels in September 2007, where our collective Principles for responsible credit were... [more...]

In its FinFocus Infoletter No 4 2007 addressed especially to a broad audience and issued on December 2007 the European Commission gives its view of the subprime mortgage crisis. FIN-FOCUS Newsletter "US sub-prime mortgage crisis – does it affect Europe? How did the crisis start? The sub-prime mortgage financial crisis began in the United States in 2006. Loans... [more...]

On 31 January 2008 a one day seminar entitled “Financial Services Provision and Prevention of Financial Exclusion” will be organised on behalf of the European Commission DG Social Policy (Employment, Social Affairs and Equal Opportunities).ECRC partner RFA is the lead organisation of the study. The study aims at identifying and analysing the most effective policy... [more...]

COMMUNICATION ON FINANCIAL EDUCATION On 18 December, the Commission adopted a Communication on Financial Education. This Communication underlines the Commission's support for the provision of financial education delivered as close as possible to the citizens that need it, namely through Member State, national and regional authorities, non-governmental agencies and the... [more...]

EU Internal market may threaten member states with legislation, if no non-regulatory solutions are put forward. We welcome ECRC members and partners to post their views and suggestions on this White paper, so that solutions can be discussed before more formal measures are imposed on the Member States. The Commission’s white paper highlights specific areas for attention... [more...]

SECOND TRY The second try of the EU-Commission to find a common definition on "overindebtedness" after DG Sanco mandated similar research in 2000 has now be made public in a conference launched by DG Social Policy. We have already expressed our reservations with regard to the selection of these contractors for such an important research. OEE, CEPS and ECRI are... [more...]

The group on the Internal Market and Consumer Protection of the European Parliament has now proposed some further changes to the present draft of a Consumer Credit Directive as it has been passed by the Council. Although in most they did not follow the Proposal of their rapporteur Lechner they left the misleading APRC, the maximum harmonisation as well as the many... [more...]

Here a little summary of the hottest topic treated: On the 20th November 2007, ADICAE (Spanish Consumer Association that monitors the impact of retail financial products on citizens life) summoned the political and economic actors to a Congress held at the CES (consultative body of the government) in order to shed light on the latest threats posed by the credit... [more...]

Last week, ECRC partner Bob Schmitz attended a hearing on retail financial services organised by ECON (Committee on Economic and Monetary Affairs) where both the GREEN PAPER ON RETAIL FINANCIAL SERVICES IN THE SINGLE MARKET and the SECTOR INQUIRY ON RETAIL BANKING was discussed. In advance of the discussions, the Commission published its working document on retail... [more...]

IMCO (Committee on the Internal Market and Consumer Protection) has been busy of late, meeting today and meeting again next week on Tuesday 27th to discuss the amendments tabled by MEPs at the IMCO meeting on the 14th of November. These amendments are available in the attached pdf: IMCO Amendments on the Common position adopted by the Council on 20 September 2007 with a... [more...]

OECD DEVELOPING CONSUMER POLICY TOOLS FOR DECISION-MAKERS Comments from ECRC partner, kuluttajavirasto, from the Finnish Consumer Agency's Newsletter no.6/2007 (Nov 2007) The OECD Committee on Consumer Policy is developing new ways to improve market efficiency. It is putting together a toolkit to give policy-makers better instruments for directing consumer... [more...]

Comments from ECRC partner, kuluttajavirasto, from the Finnish Consumer Agency's Newsletter no.6/2007 (Nov 2007) The European Commission is worried about the slow pace of the integration process. It may be, however, that the problem is bigger on the level of the single market than from the viewpoint of consumers' own experience. Retail financial services are services... [more...]

Consumer's confidence in the market can be increased by filling gaps in legislation, ensuring the activities of free dispute resolution bodies and providing proper conditions for effective and credible consumer protection. Existing directives in the area of consumer protection (the "consumer acquis") were prepared at different times and are not always consistent. Rules... [more...]

The increase of poverty is the biggest challenge for neo-liberal politics. The gap between rising productivity and declining equality inside capitalist societies threatens social cohesion and creates political turmoil. Indebtedness which historically was seen as the most visible threat of money society to individuals as a means to escape poverty is surprising. It creates... [more...]

"IP/07/1914 Brussels, 12 December 2007 Payment Services Directive: Commission encourages swift and coherent implementation at national level The European Commission is to assist Member States in their implementation of the Payment Services Directive (PSD), which following its recent publication in the EU Official Journal has now to be written into national law as... [more...]

The past week has seen ECRC coalition partners demonstrate their commitment and dynamic attitude to responsible credit through a swift analysis and information campaign warning Members of Parliament about an imminent serious downgrading of consumer protection in Europe . The ECRC reaction to a suddenly disclosed 5th of November proposal from the European Parliament via... [more...]

We remind you of the section of the website dedicated to national conferences (see the link below to read the reports from the various ECRC national conferences that have taken place this year). Also attached are the two latest reports from Paris (in French) and from Edinburgh (in English). We hope that details on the discussions that featured in these events will... [more...]

“FINANCIAL CAPABILITY – RESPONSIBLE LENDING”. ECRC presented its principles and the Coalition itself during the 4th International Forum on Financial Consumer Protection and Education that took place on 16th October 2007 in Budapest. ECRC was officially invited by the Hungarian Financial Supervisory Authority to give an overview on the activities and issues the European... [more...]

RETHINKING THE 'CREDIT CULTURE' (International Herald Tribune, by Matthew Saltmarsh, October 26, 2007) Clare Silver, 37, is one of millions of Britons who have ended up on the wrong end of the easy credit culture that has become part of that country's financial landscape. A few years back, Silver, then a manager of a bank call center, had used up her quota of... [more...]

LENDING WITHOUT BANK SUPERVISION LEADS TO USURY The American Congress draws the first conclusions from the mortgage and banking crisis. Unlike many in Europe who still publish the tale that consumers irresponsibly borrowing more money than they could afford creating the present crisis the American Congress seems to follow the thesis that irresponsible lending practices... [more...]

The ECON Committee is organising a joint public hearing on the Green Paper on Retail Financial Services and the Sector Inquiry on Retail Banking. It will take place on Wednesday, 21 November, from 11h00 to 12h30 in the European Parliament premises in Brussels. Bob Schmitz from ULC (Luxemburg) will make an introduction and participate in debates, along with other panel... [more...]

DOOD Communication to its members: DEBT ON OUR DOORSTEP 'RESPONSIBLE LENDING' PROPOSALS This week Debt On Our Doorstep (DOOD) launched a clear action plan for government to sort out the emerging credit crisis that is ever growing for low- income households. The proposals were discussed on the Radio4 Today programme, BBC TV Breakfast News, Radio Five Live and... [more...]

On the 8th of October, the Commission announced four groups of barriers to start afresh after business failure and identifies the importance of insolvency law, recommending a clear distinction between the legal treatment for non-fraudulent and fraudulent bankrupts, and an early discharge. An online platform has been launched to help on the subject. Below is the press... [more...]

On 15-16 October 2007, ECRC will be represented in the discussions that will be taking place at the Budapest Conference organised by the Hungarian Financial Supervisory Authority entitled “Financial Capability – Responsible Lending”. Dr Achim Tiffe from ECRC partner iff will be attending to explain the purpose behind the creation of the coalition as well as highlighting... [more...]

Following this week's European Parliament meeting where the Committee on the Internal Market and Consumer Protection (IMCO) met on 2 October 2007, 16.00 – 18.30 to discuss: Harmonisation of the Member States' legislation on credit for consumers (repeal of Directive 87/102/EEC) IMCO/6/22866 (The Rapporteur was MEP Kurt Lechner (EPP-ED) and the aim was the Consideration of... [more...]

PROBLEM Mutual Recognition also addressed as a principle is used by European institutions, associations and politicians. But its meaning differs and although it leads to a seeming consensus, the parties actually using it understand its meaning quite differently. The Green book on consumer protection from February 2007 enumerates three options: full harmonisation... [more...]

Invitation to the Westminster Launch of Our 'Responsible Lending' Proposals & AGM, Tuesday 23 October, London Irresponsible lending in the US sub-prime mortgage market has now fed through into a 'credit crunch' for UK banks, causing upward pressure on mortgage and lending rates for all consumers. With increasing evidence of irresponsible lending practices in the UK,... [more...]

THE ROLE OF LARGE ENTERPRISES IN DEMOCRACY AND SOCIETY This is a SCIENTIFIC CONFERENCE organised by the Observatoire de la Finance, Jagiellonian University and University of Fribourg is open to registration. DATE AND PLACE: 25th-26th October 2007, Krakow, Poland SUBJECT: How large multinationals cope with their “non-market environment” (public bodies and social... [more...]

ECRC tried out an electronic voting device during its Brussels conference. During plenary discussion at three occasions participants saw questions at the screen which they could answer by pressing a digit between one and ten. To facilitate a later more thorough evaluation all had to answer questions about themselves first at all three occasions so that later on differences... [more...]

Press release - 18-9-07 (see attachment below) IRRESPONSIBLE LENDING HITS HOME – WHY NORTHERN ROCK IS ONLY THE START Debt on our Doorstep and the European Coalition for Responsible Credit today issued a stark warning that the Northern Rock crisis, considered by many commentators an after shock of the US sub-prime lending disaster, is in fact a precursor of wider... [more...]

On 20 June 2007, the Committee of Ministers of the Council of Europe adopted a Recommendation to the European Member States, with an explanatory report entitled “Seeking legal solutions to debt problems”, in Strasbourg. We already reported and documented the recommendation itself and the final activity report of the expert group on this website. We now received... [more...]

BRUSSELS CONFERENCE 2007 Most of us came home on Sunday filled up with information and new courage to act from a conference where 178 people from 32 nations discussed in four plenary sessions and nine workshops how to ame-liorate the situation in credit and debt not only in Europe but in the world. The present mortgage crisis coming from irresponsible lending motivated... [more...]

WHAT CAN SAVE THE FAILED HARMONISATION APPROACH OF THE EU? Last Saturday September 15, 2007 at 9.00 o'clock in Brussels representatives of the Council, the Commission, Bankers' Round Table, Consumer Organisations, the Economic and Social Comitte of the EU and from the European Parliament (who participated from the audience) discussed whether the upcoming EU-Credit... [more...]

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Note: Below are cross-border articles, for example Australia is considering requiring the Federal registration of mortgage brokers, a step still not taken in the United States despite the U.S.'s predatory lending crisis. Also, two articles about merger approvals (like the Federal Reserve's approval today of Bank of America to buy LaSalle) -- antitrust waivers in Russia... [more...]

A WARM WELCOME TO BRUSSELS! Tomorrow we will meet and exchange our views. 178 experts from 32 countries and from five continents will be present. We will mirror the wide variety of people concerned with financial services. Social organisations with equal shares of consumer, money advice and welfare organisations will make up for 38% of the participants, banks for... [more...]

France was the first country which gave exemptions to its rate ceilings for social lending especially microlending. A country which may have the toughest legislation on productive credit and the limits it has to observe to remain below a ceiling which poor people can afford already exempted social lending from the general bank supervision in its bank law which is in so far... [more...]

Paul Dembinski writes to ECRC “In a few weeks the annual meeting on “Ethics, Finance & Responsibility” will take place in Geneva and Bossey. You will find the detailed programme in the appendix. May I draw your attention that the meeting this year will be inaugurated by a public session during which the winners of the Robin Cosgrove Prize, Ethics in Finance 2006/2007... [more...]

NOTE: Is it a trend? GE Money is moving to leave Japan due to interest rate caps, see below, and the same is being implemented in South Korea. Some wonder, so why is it still the Wild West in the USA? As only one example, the problems Barclays has gotten into with U.S. subprime, from buying Equifirst from Regions and the remainder of The Money Store from Wachovia, have... [more...]

BRUSSELS CONFERENCE 2007 – ONE MONTH TO GO! Less than 30 days separate us from our next international meeting in Brussels where all efforts manifest in the national conferences will merge into a visible representation of stakeholders. 60 persons whom we addressed directly representing consumer organisations, social welfare organisations, banks, science, alternative... [more...]

JUBILEE CONGRESS DUTCH ASSOCIATION FOR MUNICIPAL CREDIT (NVVK) The NVVK celebrates its 75th anniversary on the 8th of November in De Grote Kerk in The Hague. This Jubilee Congress will have national and international aspects. The former Dutch Minister of Finance, drs. G. Zalm, will discuss the future of social loans in the Netherlands, Recently the NVVK has... [more...]

(*please note to avoid confusion: This text is from the Council of Europe and NOT the European Council, they are two different organisations – see the link below to know more about the CoE. Documents attached below) COUNCIL OF EUROPE ON RESPONSIBLE CREDIT: AHEAD OF THE EU? RECOMMENDATION CM/REC(2007)8 OF THE COMMITTEE OF MINISTERS TO MEMBER STATES ON LEGAL... [more...]

IN PRAISE OF USURY (Aug 2nd 2007- From The Economist print edition) IGNORE CREDIT SNOBS. IT IS NO SIN TO PROFIT FROM LENDING TO THE POOR IN DANTE'S “Divine Comedy”, usurers are consigned to a flaming desert of sand within the seventh circle of hell. Attitudes have since softened a bit. Microcreditors, who offer small loans to self-employed poor people, enjoy... [more...]

Gibbons and Schwartz have suggested that EU Member States establish a 10-day waiting or reflection period that would begin after borrowers receive a binding offer from a lender. During this waiting period, the money borrowed could not be used unless the consumer made an explicit decision to get the money earlier. This right would complement the 14-day cooling-off period... [more...]

PRINCIPLES OF RESPONSIBLE CREDIT – A FAIRY TALE THE WOLVES EAT THE SHEEP Once upon a time there were wolves and sheep in a big forest. The wolves hunted the sheep and had a lazy life while the sheep tried to escape extermination by increased reproduction. THE WOLVES LED THE SHEEP LIVE AND WORK But this did... [more...]