||Australia: ASIC Releases Guidance for P2P lending market. The information sheet is an example of how regulators can help innovative start-ups understand the regulatory framework they...
The Australian Securities and Investments Commission (ASIC) today announced the release of an information sheet, containing guidance and best practices to be followed by Australian peer-to-peer lenders. The regulator revealed that a number of marketplace lending entities were consulted in preparing the document. The information sheet describes what peer-to-peer lending is... [more...]
||UN conference on Trade and Development Drafts new Principles on Consumer Protection especially in Financial Services
The UNCTAD has revised its consumer protection guidelines especially with regard to financial services that until now had been omitted. The USA has called this premature since OECD and G20 are working on the same issues. The Draft is based on a survey in 2014 of UNCTAD with member countries in which only a few have participated. The new draft of the principles is in... [more...]
||Bank supervisors get interested in responsible credit – FinCoNet publishes its report on responsible lending
A worldwide association of bank supervisors have published a report on responsible lending. The report covers European countries like Germany and France but not the UK and most of the other EU states. But it also covers also China, Japan, Singapore, South Africa, Australia and Uganda. The USA and South America do not show up. Although this is a quite arbitrary selection... [more...]
||Interest and Money – Usury and Anatocism – Some basic Q&A about Responsible Credit (to myself)
Have you ever considered a world without interest? Aristotle said interest is theft, in which case bankers must be criminals. Civil law refers to interest as the usus fructus of “money”, a “fruit” in the same way that the labour of the slave was his usus fructus and apples are the usus fructus of the tree. But ancient philosophers, the Christian church and Islam are... [more...]
||1,270% APRC - the new UK usury rate ceiling?
In the UK consumers can still pay extortionate rates of interestwithout being able to blame the banks. So-called ‘payday loans’ in the UK are marketed as an alternative to more affordable overdraft credit. They are extended to people who struggle to make it to the end of the month and their next wages. This liquidity problem is exploited by the banks. But the banks at... [more...]
||Principles of Responsible Credit – Conference and booklet in Lithuania
ECRC representatives will attend a conference in the Lithuanian Parliament organised by Lithuanian ECRC partner LBCA. The Lithuanian Bank Customers Association has translated the ECRC principles into Lithuanian (the full version). This version has now been added to translations available of the principles on the ECRC website:... [more...]
||Consumers International: Report identifies dimensions of responsible lending and makes Recommendations. Welcome report from the user side, but it makes no reference to our principles of...
We welcome this study but hope that Consumers International (CI) will seek to incorporate the insights of the ECRC coalition with its emphasis on responsible credit. Our principles also stress that all lenders should seek to ensure that borrowers can repay their debts without suffering hardship and that the financial service sold is appropriate to the borrower’s needs and... [more...]
||IRELAND and ECRC: A major report from ECRC partner FLAC stresses the need for responsible credit. It says consumers need proper legal protections as the report on Consumers of financial...
IRELAND and ECRC: A major report from ECRC partner FLAC says consumers need proper legal protections as a Report on Consumers of financial services shows they are being badly let down by the system. ECRC partner from Ireland, Free Legal Advice Centres (FLAC) has produced a comprehensive report outlining how consumers are entitled to a high level of legal protection as a... [more...]
||Update on recent adopted laws in Portugal: ECRC partner from Portugal gives an update of latest laws on responsible lending, mortgages and default, Minimum banking services.
PT – Responsible lending Package Decree-law nr. 226/2012 of 18 October and Decree-law nr. 227/2012 of 25 October constitutes the legislative package that aims to combat situations of over-indebtedness and tackle the escalation of non-compliance consumer credit that have been experiencing in recent years given the difficult economic climate that has affected the country.... [more...]
||Responsible Credit - A basic principle in the five principles on consumer protection of the International Law Association
The Committee on International Protection of Consumers, from the International Law Association (London) an Association founded in 1873 together with the Institut de Droit International, Paris developed with its. Sofia Declaration five basic international principles on consumer protection: 1.Principle of vulnerability 2.Principle of the most favorable protection 3.Principle... [more...]
||Transposition of the CCD in France has led to new rules on professional standards for those selling consumer credit
The news below, in French, concerns the updates that professionals “selling” consumer credits should follow to be considered respecting the Consumer code. In a nutshell, it is about different types of credit, legislation, rights and duties of the borrower and the intermediates, reasons of over indebtedness and prevention. Crédit à la consommation proposé sur le lieu de... [more...]
||CSR: Report by CfRC gives an overview of existing standards in bank CSR reporting with respect to responsible lending and the ECRC Principels of responsible credit
Raising the standard of bank CSR reporting With financial support from the Citi Foundation, the UK Centre for Responsible Credit together with the institute for financial services (iff) conducted a study of CSR reports issued by twelve major retail banking operations in the UK, France, Spain and Germany (HSBC, Santander, Credit Agricole, Barclays, BBVA, Royal Bank of ... [more...]
||BRAZIL – Promoting Responsible Credit - Lançamento da cartilha eletrônica "Crédito responsável"
Prezado associado e amigo do Brasilcon, Tenho a satisfação de informar o lançamento da cartilha eletrônica "Crédito Responsável", que procura explicar, de modo claro e objetivo, sobre os riscos do superendividamento. O documento, que será encaminhado para todos os PROCONS e entidades civis de defesa do consumidor, pode ser incluído em páginas da internet pelos... [more...]
||Credit card reform in the UK: 5 new rights for credit card borrowers and more detail on forthcoming irresponsible lending guidance
Government sets out next steps on credit card practices and responsible lending Government has set out details of the next steps it will be taking to make lending practice more responsible, including five new 'rights' for credit card borrowers, and more detail of the likely content of the OFT's forthcoming irresponsible lending guidance. The next steps are: Credit card... [more...]
||NEW Centre for Responsible Credit is created in the UK! It's first activity is a call for 'Five Ways to Improve the UK Financial Services Bill'
The creation of this Centre is good news for research in the UK. Here attached is the Centre’s first briefing for MPs on the UK Financial Services Bill which is now before Parliament in the name of Centre for Responsible Credit. Please read the attachment below “Five Ways to Improve the Financial Services Bill” -------- About the Centre for Responsible Credit Background... [more...]
||Australia is moving in Consumer Credit
From the latest newsletter of the International Association of Consumer Law November 2009, Vol. 2, issue 2 (www.iaclaw.org) edited by Christine Riefa, Brunel Law School, UK we learn about the efforts made in Australia to harmonise consumer credit law and introduce more effective elements, amove which follows the centralisation of consumer credit law in the US through the... [more...]
||Obama fights for an independent Consumer Protection Agency on Financial Services. In Europe instead the Slogan Safety first puts Soundness and Consumer Protection on second rank. We...
http://fairrecovery.org/whyfairrecovery/specialissues.html For a comment in German see German page on verantwortliche-kreditvergabe.net or click from sister websites The Consumer Financial Protection Agency – a key to safe and sound access to credit by Gregory D. Squires Of the many factors that have made the United States the world’s premier capital marketplace for 80... [more...]
||Anglo-Saxon countries rediscover consumer credit regulation through interest rate restrictions - Payday lending is being targeted in South Australia in an amendment bill 2009.
Below is the text from the South Australian Payday Lending Bill which was raised a few months ago. There is a similar Bill in the pipeline in Western Australia. Three Australian States and ACT have already imposed payday lender interest rate restrictions, with the above two States having Bills in the pipeline. This reassessment of existing non-regulation has also been... [more...]
||G20 - Global Coalition renews its call for banks ‘worth saving’ / Rappel vers les leaders du G20 à créer un système financier qui mérite d’être sauvé
At the occasion of the G20 summit in Pittsburgh, the ECRC renews its call for banks ‘worth saving’ (which it issued at the previous London G20 Summit in April 2009) and reminds coalition partners of its critique of the more recent G20 Declaration “12 measures for a socially useful financial system” led by alternative banks. ----- [en français, voir ci-dessous] Global... [more...]
||A new Pittsburgh G20 Declaration in the Making by some coalition partners - ECRC prefers to concentrate on its Principles of responsible credit and will reissue its previous April...
G20 Summit on Incentives, Investments and Institutions There has been an extensive discussion among members of the Coalition for Responsible Credit and Community Reinvestment concerning a paper promoted especially by INAISE, the organisation of alternative and ethical banks in Europe for the upcoming G20 summit. A number of Coalition members have already signed this... [more...]
||Report from the Responsible Lending Hearing in Brussels in Spetember 2009
Report from the Responsible Lending Hearing organised by DG Markt in Brussels on Thursday 3 September 2009. ECRC summary The Commission services should be praised for having held such a consultation on such a subject of great interest to the members of our coalition. The ECRC has been organising conferences with the very aim of discussing such issues of responsible credit... [more...]
||Responsible Lending or Responsible Borrowing - Who is to blame for the financial crisis? In their response to the hearing ECRC censures the idea of solving the crisis at the expense of...
Public Consultation on Responsible Lending and Borrowing in the EU August 10, 2009 1. Question 3 In your view, are there certain (categories of) credit products that are inherently unsuitable for sale to retail borrowers? In our Subprime Declaration from 30 June 2008 ECRC supported by many signatures from its coalition partners had already pointed to a number of... [more...]
||Responsible Lending and Responsible Borrowing - EU launches a Public Consultation for September 3, 2009 - ECRC discusses reaction, first responses of ECRC partners available here
1. EU-Commission on Responsible Lending and Responsible Borrowing EUROPEAN COMMISSION Internal Market and Services DG FINANCIAL INSTITUTIONS Retail issues, consumer policy and payment systems Brussels, 15 June 2009 PUBLIC CONSULTATION ON RESPONSIBLE LENDING AND BORROWING IN THE EU (see link at the bottom) "Responsible lending" means that credit products are appropriate... [more...]
||EU Consultation - Responsible Lending and Responsible Borrowing. ECRC has contributed a statement, while partners respond with more concrete examples to the Commission questions.
PUBLIC CONSULTATION ON RESPONSIBLE LENDING AND BORROWING IN THE EU (see links below) The European Coalition for Responsible Credit has today contributed the following to the European Commission’s consultation on Responsible Lending. We hope that it will help to readjust the Commission services’ appreciation and understanding of the key issue of responsible credit. See... [more...]
||UK LENDING RULES – The OFT has published its Report on “Irresponsible Lending” to serve as a guidance for all creditors. Many aspects of the ECRC Responsible Credit principles feature...
The European Coalition for Responsible Credit has been promoting events and sharing research and suggestions for more sustainable financial services and fair finance for a number of years. Conversations at seminars and exchange of views at our national and international stakeholder conferences help those interested in developing forms of best practice. Our 7 Principles of... [more...]
||RESPONSIBLE LENDING – ECRC partner Altroconsumo has already responded to the European Commission consultation on Responsible lending
(open til end August) See Altroconsumo's comments. Please send us yours so that we can include them in our ECRC repsonse over the coming weeks. See links below. [more...]
||More and more bodies are putting forward principles and other suggestions for Responsible lending etc.. these need to be matched up to our own Principles.
The ECRC and its partners have developed basic rules or principles in several related areas. Below are some principles from other sources etc... [more...]
||RESPONSIBLE LENDING – Consultation time: The European Commission has published 2 Reports and the ECRC has been asked to submit its opinion on these documents before end of August...
This summer, ECRC partners will need to get together and formulate their response to the work the Commission has done in the area of responsible lending and borrowing. We hope for a strong participation in the drafting of our response from our partners. Please contact the ECRC secretariat at firstname.lastname@example.org if you already want to show that you desire to give input to... [more...]
||The World Council of Credit Unions has also got their own principles that they refer to as their “Consumer Protection Principles“
The International Credit Union movement has developed its Consumer Protection Principles as well as other operating, governance and safety and soundness principles for credit unions. These and a few other principles need to be taken into account when regulators, policy makers, providers and other stakeholders of credit markets start putting forward their suggestions for... [more...]
||RESPONSIBLE LENDING STANDARDS - The European Mortgage Federation has made its Public Draft of Responsible Lending Standards available.
The document represents the summary of the European Mortgage Industry’s reflections upon the subject of responsible lending at this point in time, but remains a work-in-progress upon which the EMF would welcome the comments of stakeholders. 11 Remarks and 15 Indicators! The 15 items treated as Indicators are not actually indicators until they become measureable and this... [more...]
||„A New Era of Responsibility“ The Coalition for Responsible Credit (ECRC) welcomes this new American Government Approach and invites Politicians who share these convictions not to spare...
„A New Era of Responsibility“ The Coalition for Responsible Credit (ECRC) welcomes this new American Blue Print and invites Politicians who share these convictions not to spare the financial sector and make the ECRC Principles of Responsible Credit operational. “New Era of Responsibility” – An Alternative to the neo-liberal “Fairnes Approach” According to Wall Street... [more...]
||OVERINDEBTEDNESS: Report publsihed on the EU project on a common definition.
The EU’s work on finding a common operational European definition of over-indebtedness has been published. The final report is available below. Please also see link to previous comment on the website. [more...]
||New Ideas on Responsible Credit in the UK? The Office of Fair Trading is to launch year long project into 'responsible lending' and is in contact with ECRC. International ECRC...
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 is... [more...]
||ECRC-Principles, Prinzipien, Principes, Principi, Principios of Responsible Credit in Different Languages
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...]
||MAIN ECRC CONFERENCE - “London 2008” - Stakeholders interested in Responsible Credit markets will be meeting again this year. Date for your diaries: 13-14 November 2008 in London.
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...]
||BRUSSELS CONFERENCE – Having attended ECRC’s event, our Finnish partner Kuluttajavirasto (The Consumer Agency) comments on it in its newsletter.
Extract from The Finnish Consumer Agency's Newsletter 3/2008 and report on our ECRC conference in September 2007 THERE IS A NEED FOR SMALL LOANS, TOO REASONS FOR THE OVER-INDEBTEDNESS OF THE POOREST SEGMENTS OF SOCIETY WERE PONDERED AT AN INTERNATIONAL CONFERENCE ON RESPONSIBLE LENDING. THERE IS A NEED FOR REASONABLY PRICED MICROLOANS IN ALL COUNTRIES. Questions about... [more...]
||UK BANKS - The announcement of a new Banking Code and promise by providers to treat customers fairly and reasonably may sound like an empty promise to some, despite some noteworthy...
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 standards... [more...]
||Too Late for Social Contract Law in Europe? End of 2008 the final Draft of "Common Principles of European Contract Law" (CoPECL) sponsored by the EU Commission will be presented to the...
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 pure... [more...]
||Predatory Lending in the US and European Welfare Recipients: US Federal Reserve Board: Predatory Lending is a major Cause for the Subprime Crisis or Why German Welfare Recipients...
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 side... [more...]
||EU Commission on the Reasons of the Subprime Crisis: Irresponsible Borrowing and Intransparent MBS Markets
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 were... [more...]
||RESPONSIBLE CREDIT - UK partner DOOD has launched its PROPOSALS for ACTION for responsible credit in the UK at a meeting in parliament today!
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...]
||ECRC Stakeholder Parliament: 44 Questions and 44 answers on Responsible Credit by the Participants of the ECRC Brussels Conference 2007. Results: Strengthening of ECRC, Overindebtedness...
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...]
||Background Information to the Council of Europe standards for debt adjustment by the former Chairman of the Expert Group Dr. G.H. Lankhorst, Unit Access to Justice, Ministry of Justice,...
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 this... [more...]
||BRUSSELS 2007! Plenary 4: "Principles of Responsible Credit – Why and What?" - STATEMENTS
BRUSSELS 2007! Plenary 4: "Principles of Responsible Credit – Why and What?" - Statements by Lisa Dickinson (GE Money); Craig Norton (HBOS); David Dolidze (Council of Europe)* [more...]
||BRUSSELS 2007! Plenary 4: "Principles of Responsible Credit – Why and What?" - OUTLINE
P4: PRINCIPLES OF RESPONSIBLE CREDIT – WHY AND WHAT? Damon Gibbons (DOOD/ECRC, Chair); John Taylor (NCRC); Jim Murray (BEUC)*; Guy Schellinck (Citi Belgium); Judith Wittig (Deutsche Bank); Lisa Dickinson (GE Money); Craig Norton (HBOS); David Dolidze (Council of Europe)* On Saturday Sept 15th, 10.45am The development of principles has become fashionable in all areas of... [more...]
||Workshop 9: "Exploring Principles P6, P7 (Overindebtedness, Advice)" - OUTLINE
- Imminent - [more...]
||Workshop 8: "Exploring Principles P4, P5 (Adaptation, Legislation)" - OUTLINE
- Imminent - [more...]
||Workshop 7: "Exploring Principles P1, P2, P3 (Lending)" - OUTLINE
- Imminent - [more...]
||“Ethics, Finance & Responsibility” organised by the Geneva based Observatoire des Finances will among others concentrate also on Private Equity : Can it Be Socially Responsible?
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 will... [more...]
||Principles of Responsible Credit - "Once upon a time there were wolves and sheep in a big forest. ... A Fairy Tale why Principles can be of Help
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 not... [more...]