This study was commissioned by the European Parliament's Policy Department for Citizens' Rights and Constitutional Affairs at the request of the JURI Committee. It looks at the effects the recent Commission proposal might have both on micro and small and medium-sized enterprise, thus reflecting the diversity of SMEs. It identifies and explains the issues at stake of... [more...]

At a Glance - A SECOND CHANCE FOR ENTREPRENEURS - PE 583.141 - Committee on Legal Affairs There are still several Member States where a business cannot be restructured before it is insolvent. Important discrepancies have remained as to the duration of the discharge period. Such differences in Member States' legal frameworks mean continuing legal uncertainty. The proposal... [more...]

In 2016 The coordination of ECDN was taken over by Bulgarian partner Centre Innovation and Development. Since April 1st, 2016 ECDN has a new coordination office. The task of coordinating the different activities of ECDN will Centre Innovation and Development be fulfilled by the (CID) at the University of Economics-Varna (UEV).The CID was established in 2013 and is led by... [more...]

The Causes of Household Bankruptcy: The Interaction of Income Shocks and Balance Sheets, Vyacheslav Mikhed and Barry Scholnick, Philadelphia Fed Working Papers July 2016 Abstract We examine how household balance sheets and income statements interact to affect bankruptcy decisions following an exogenous income shock. For identification, we exploit government payments in... [more...]

Convergence of insolvency frameworks within the EU In the context of the 2015 Capital Markets Union Action plan and Internal Market Strategy, the European Commission is in the process of preparing a legislative initiative addressing certain aspects of substantive insolvency laws. This initiative will follow up on the Commission Recommendation of 2014 on a new approach on... [more...]

Regulation on Insolvency Proceedings (Recast) was published on June 5, 2015. The Regulation (EU) 2015/848 of the European Parliament and of the Council , of 20 May 2015, on insolvency proceedings (recast), has been published OJ L 141. On 20 May 2015 the European Parliament approved the new European Insolvency Regulation (EIR) in the text adopted by the Council at first... [more...]

Overindebtedness specialist and ECDN partner from Sweden Prof. Richard Ahlström shares two recent reports that he has worked on recently. The first one concerns the cost to society of over-indebtedness in Sweden. This report was published yesterday (16.6.2015) by the Swedish National Audit Office. In the first link below there is a summary in English. The Audit Office is... [more...]

The final report and summarised country reports are available here. Final report and Annex VI: summarised country reports A summary is copied below.   Study on ''Bankruptcy and second chance for honest bankrupt Entrepreneurs'' Published on: 03/12/2014 by the Directorate-General for Enterprise and Industry The specific aims of this study are to look at: 1. the extent to... [more...]

In April 2014, the European Economic and Social Committee drew up an exploratory opinion on Consumer protection and appropriate treatment of over-indebtedness to prevent social exclusion. The links to the paper are available below. A short description of the EESC Calls and recommendations include the following: Calls for a common definition: The EESC is... [more...]

Organised in Brussels by ECDN, EFIN and the ​EESC on December 12th 2014 is a long awaited conference to discuss Overindebtedness in Europe. The main piece of the event is the discussion of the soon to be published 2012-2013 Study on Overindebtedness by DG SANCO. All the key stakeholders are expected to attend. The conference programme is being elaborated and the main... [more...]

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...]

Diana Cerini from the University of Milano Bicocca has published 521 pages about Overindebtedness and Consumer Bankruptcy: Between punishment and grace in Italian language with Giuffré Editore 2012. In this socio-legal study the author traces the history of modern concern with consumer overindebtedness, While she starts with the perception of overindebtedness the third... [more...]

Church Action on Poverty have launched a charter with a call for tougher regulation and enforcement in relation to payday lenders. The charter is a reaction to the financial conduct authority's (FCA) proposals for regulation, that are not considered as reaching far enough by several cross-party MPs and “some of Britain’s biggest debt, consumer and anti-poverty... [more...]

Accounting for Personal Overindebtedness: Debtors' Accounts in Applications for Debt Relief at the Swedish Enforcement Authority Bengt Larsson and Bengt Jacobsson Abstract: This paper aims to describe and understand the accounts given in applications for debt relief/adjustment in relation to the 'question situation' that overindebted person stand before in their... [more...]

Revising the code of conduct for banks on mortgage arrears: Central Bank Publishes Revised Code of Conduct on Mortgage Arrears http://www.centralbank.ie/press-area/press-releases/Pages/CentralBankPublishesRevisedCodeofConductonMortgageArrears.aspx Past FLAC comment: The Central Bank is in the process of revising its current Code of Conduct on Mortgage Arrears - a very... [more...]

Debt and Dying Understanding and addressing the impact of funeral costs for Travellers in Ireland An exploratory analysis for National Traveller MABS The Financial Burden Of Funerals within the Traveller Community In 2010, Dr Stuart Stamp, Maura Boyle and Ciara Murray carried out exploratory research on behalf of National Traveller MABS into the financial burden of... [more...]

The Report and two posts by Jason Kilborn on the Credit Slips blog are featured below. Report on the Treatment of the Insolvency of Natural Persons (2013, the World Bank: Insolvency and Creditor/Debtor Regimes Task Force: Working Group on the Treatment of the Insolvency of Natural Persons; Committee Chair: Jason J. Kilborn; Members: Charles D. Booth, Johanna Niemi, Iain... [more...]

This Focus Note, from the author from South Africa who has been involved in discussions with the ECRC over past years, aims to offer practical guidance to regulators and policy makers who face challenges of private credit growth. It argues that it is preferable to implement appropriate monitoring mechanisms and regulatory interventions at an early stage in credit market... [more...]

Here attached and as links are the Study on debt solutions produced by London Economics entitled “Study on means to protect consumers in financial difficulty: personal bankruptcy, datio in solutum of mortgages, and restrictions on debt collection abusive practices” and the FSUG Position Paper on it. March 2013: FSUG position paper on the debt solutions research study... [more...]

See some recent consumer related news from Ireland including the financial supervisor’s new Consumer Protection strategy based on the 5 “C”s framework: CONSUMER alongside CONFIDENCE, COMPLIANCE, CHALLENGE and CULTURE. Personal Insolvency Act 2012 See the following link: http://www.oireachtas.ie/documents/bills28/acts/2012/a4412.pdf Civil Law The Personal Insolvency Act... [more...]

Household over-indebtedness: definition and measurement with Italian data Bank of Italy Occasional Paper Number 149 – February 2013 by Giovanni D'Alessio and Stefano Iezzi Abstract The last decade has seen significant increases in consumer indebtedness in western countries, causing concern about its economic and social impact. In particular, over-indebtedness is... [more...]

The news is posted by ECRC partner Christian Schumacher from the Ligue Medico-Sociale, he is also a member of ECDN and the new law for personal insolvency and debt relief is partly the result of the intense exchanges within this EU network, which can be proud of its achievement in promoting the harmonisation of laws in this area among those Member States that still do not... [more...]

The preliminary findings of the “The over-indebtedness of European households: updated mapping of the situation, nature and causes, effects and initiatives for alleviating its impact” study was presented at stakeholder seminar on January 24th in Brussels. DG Sanco has announced to publish the final version in April 2013. The summary document for the stakeholder workshop... [more...]

Journal of Consumer Policy Volume 35, Issue 4, December 2012 Special Issue: The Regulation of Over-indebtedness of Consumers in Europe http://link.springer.com/journal/10603/35/4/page/1   [more...]

ECRC Irish partner FLAC (Free Legal Advice Centres) has organised a conference on personal insolvency run in Dublin on April 19th. Discussions and presentations from international speakers centered around private bankrupcy and the Irish draft scheme for a forthcoming Personal Insolvency Bill which was published in Ireland at the end of January and likely to be published at... [more...]

ECRC will be represented at a conference being organised at the University of Bari in Italy on 19-21 July 2012. The conference will bring together legal scholars, jurists, lawyers, policymakers and practitioners from public and private institutions and organisations from all over Europe and we encourage ECRC partners to join. Reputable experts in the field will be present... [more...]

The Committee on the Internal Market and Consumer Protection (IMCO), European Parliament has held an additional hearing on the basic bank account following hearings by both the IMCO and ECON hearings from last year. Prof. Reifner from ECRC partner iff contributed to the debate on EU basic banking legislation with a presentation and paper on the role of overindebtedness... [more...]

A Draft Report on the Treatment of Insolvency of Natural Persons is being discussed and will serve as the basis for the discussions at the meeting of the expert group next week. The meeting will take place in the Preston Auditorium at the World Bank Headquarters located at 1818 H Street, N.W., Washington, DC 22043. The Thursday, Nov 17, morning session is also open to... [more...]

ECRC has been involved in the Greek consumer bankruptcy scheme that has been passed 2011 and is now open for overindebted Greek citizens. This happened last minute after the situation for Greek citizens deteriorated so significantly. Our Greek member gives us the first impression how well international cooperation not only of banks but also of stakeholder groups can word.... [more...]

ECRC supporter Dr Georges Gloukoviezoff, is an excellent economist and specialist researcher in issues of financial exclusion. He continues to make a large contribution to the debate on responsible credit with a recent publication from Dublin’s Trinity College Policy Institute for the Irish Government.   Book outline: “Unlike the UK, France and Belgium, Ireland has not... [more...]

The institute for financial services (iff) with support from the Nuremberg based charitable foundation “Deutschland im Plus” has published its iff Over-indebtedness report 2011 in Germany this week. Key findings of the 2011 edition are: - Rise in personal insolvencies in 2010, turn in trend for 2011 - “Irresponsible consumption” at its lowest level since 2005 -... [more...]

The UK debt charity Consumer Credit Counselling Service (CCCS) is analysing the phenomenon of indebtedness and over-indebtedness using data from those persons subject to the counselling. Such empirically founded research informs policy makers about the true nature of the problems being faced by those experiencing problematic debt. Similar research is taking place elsewhere... [more...]

A cross national comparision of data on consumer indebtedness is less easy than one can assume. The European Consumer Credit Research Institute (ECRI) a research institution between lobbying and research financed by major banks provides the only annual statistics on houshehold borrowing and consumer credit (see http://www.ecri.eu/new/node/165). Since its basis are... [more...]

Central Bank of Ireland announces appointments to Consumer Advisory Group  http://www.financialregulator.ie/press-area/press-releases/pages/centralbankofirelandannouncesappointmentsto.aspx Financial Exclusion and Over-indebtedness in Ireland Publication http://www.esri.ie/publications/search_for_a_publication/search_results/view/index.xml?id=3239 Conference... [more...]

“Is there a light at the end of the tunnel?” asks an ECRC partner from Ireland regarding major law reform. See the links below: Personal Insolvency Bill On 24 January, 2012, the Government approved the Minister for Justice and Equality proposals for the drafting of the Personal Insolvency Bill. The drafting of the Bill, will be arranged on a priority basis, so that it... [more...]

Below is a translation of Brasilcon’s news update, our Brazilian partner of the Global Coalition for Responsible Credit. Dear friend and associate of Brasilcon, We inform you with satisfaction on the launch of the Handbook about overindebtedness, the result of a partnership between the Department of Consumer Protection and Defense (DPDC) and experts: Claudia Lima Marques,... [more...]

The European Commission is still examining different options subject to the on-going Impact Assessment study and could come forward with concrete proposals in this field in the first half of 2011. The most preferred option appears to be a new self-standing European procedure: a European Bank Attachment Order. Commissioner Reding in charge of the new EU Justice portfolio is... [more...]

"Regional and local treatment, prevention and assessment of over-indebtedness" Namur (Belgium), 30th Sept - 1st Oct 2010 Sir, Madam, Within the framework of the Belgian Presidency of the Council of the European Union, the Observatory of Credit and Indebtedness is holding a symposium. This will be about actions implemented by Regions and territorial communities concerning... [more...]

Expert Recommendations and the Evolution of European Best Practices for the Treatment of Overindebtedness, 1984-2010 Jason J. Kilborn The John Marshall Law School August 21, 2010 Abstract: A series of European experts have weighed in over the past twenty years on the proper way forward for preventing and treating consumer overindebtedness. This paper applies these expert... [more...]

Risk of Overindebtedness and Behavioural Factors Luisa Anderloni University of Milan – DEAS, Daniela Vandone University of Milan, August 4, 2010 RISK TOLERANCE IN FINANCIAL DECISION MAKING, C. Lucarelli, G. Brighetti, eds., Palgrave Macmillan, 2010 Abstract: The aim of this paper is to analyse the link between behaviour and overindebtedness and to shed light on the... [more...]

Joseph Rowntree Foundation reports low income households using credit to meet basic needs ‘Credit and Debt in Low Income Families’, which examines credit use and debt levels amongst low income families, shows that complex debt arrangements and a lack of sustainable employment typically leads to poor debt management and ‘debt traps’. The report finds that debt is more... [more...]

Greece has introduced a new consumer bankruptcy code modelled after the German insolvency procedure but with a significant shorter good will period of 4 years (6 in Germany). Its outstanding innovation lies in the development of a network of debt advice offices in Greece. In its inauguration conference the Greek socialist ministry of economics had invited a representative... [more...]

Joint Committee on Social & Family Affairs (2nd Report on High levels of Indebtedness in Irish Society, February 2010) Report from the Joint Committee on Social and Family Affairs on 'High Levels of Indebtedness in Irish Society' http://www.oireachtas.ie/documents/Committees30thDail/J-SocialFamilyAffairs/Reports_2009/20100216.doc FLAC Press Release... [more...]

PRESS RELEASE: Business, Innovation and Skills, 4 February 2010 Full report - The Department for Business, Innovation and Skills: Helping over-indebted consumers The Department for Business, Innovation and Skills’ (BIS’s) free face-to-face advice for people struggling with debt has helped more people than planned, at slightly less than the planned cost per... [more...]

2009 International Forum on Legal Aid Taipei Taiwan Panel Discussion III Day 2 [14:00-15:10, 1/11/09] Poverty, Debt and Legal Aid in Japan Saya Oyama (Associate Professor, Kinjo Gakuin University Japan) ________________________________________________________________________________ Preface As an introduction to the issues of “Poverty, Debt, and Legal Aid in Japan”, I... [more...]

Here attached is the critical assessment by ECRC partner ULC (Union Luxembourgeoise des Consommateurs) of the Luxemburg bankruptcy law proposal (in French). Despite welcoming the legal initiative allowing for private rehabilitation and a ‘second chance’, l’ULC is not content with : the slow implementation of total debt discharge (which in some cases could involve 20 years... [more...]

The event, organised by Applica, one of the coordinators of the European Observatory on the Social Situation and Demography (an Observatory that consists of four multi-disciplinary networks of independent experts established for the European Commission in 2005, with the aim to analyse social and demographic trends and to assist the Commission in its duty to report on the... [more...]

31st of October: ecdn calls decision makers to take urgent action The European Consumer Debt Network expects numbers of over-indebted people to grow and sends a letter to European decision makers to call for urgent action. (Press Release) At least 20 million people are over-indebted in the EU. "With the increasing unemployment rates the number of people with debt problems... [more...]

Consumer Bankruptcy Regimes in the US and Europe - Further effects and implications of the crisis (CEPS Working Document No. 318/July 2009 by Maria Gerhardt) ABSTRACT Consumer insolvency is a topic that has gained much prominence in the context of the financial crisis on both sides of the Atlantic. In countries such as the US and the UK, the number of bankruptcy filings... [more...]

The discount order form for this book is on the second page of the flyer attached below. CONSUMER CREDIT, DEBT AND BANKRUPTCY - COMPARATIVE AND INTERNATIONAL PERSPECTIVES Edited by Johanna Niemi, Iain Ramsay and William C Whitford After a long period of prosperity and steady economic growth, the world's leading economies are now in crisis, and although there will be... [more...]