Article on Irresponsible Lending by Olha Cherednychenko and Jesse Meindertsma in Journal of Consumer Policy

The GCEFSL researchers Olha Cherednychenko and Jesse Meindertsma have published the article entitled 'Irresponsible Lending in the Post-Crisis Era: Is the EU Consumer Credit Directive Fit for Its Purpose?' in Journal of Consumer Policy (42) 2019. It builds on the studies prepared by the authors for the European Parliament’s Committee on Economic and Monetary Affairs (ECON) and the European Commission Directorate-General for Financial Stability, Financial Services and Capital Markets Union (FISMA). The article aims to uncover the problematic aspects of consumer credit provision in the post-crisis lending environment across the EU and to assess to what extent the 2008 Consumer Credit Directive currently in force, which aims to ensure adequate consumer protection against irresponsible lending, is fit for its purpose today. In this context, the article explores the general meaning of “responsible lending” with emphasis on consumer credit, identifies the most imminent irresponsible lending practices in the consumer credit markets, and tentatively analyses their key drivers. It also reveals some important limitations of the Consumer Credit Directive in providing adequate consumer protection against irresponsible lending and offers tentative recommendations for improvement. In the authors’ view, the time now seems ripe for striking a different balance between access to credit and consumer protection in European consumer credit law.