Consumer Credit in Europe: Macro- and Microeconomic Perspectives

Intro -- Acknowledgements -- Contents -- About the Author -- List of Graphs -- List of Tables -- 1 Introduction -- 2 Trends and Role of Consumer Credits in the European Economy -- 2.1 Statistics on the Growth of Consumer Credits in the Period 1995-2019 in EU Member States -- 2.2 Reasons for the Differentiated Dynamics of Consumer Credits in the Last 20 years -- 2.3 Role of Consumer Credits at the Macroeconomic Level in Europe -- 2.4 The Particular Case of Consumer Credits in Post-transition Countries -- 2.5 Impact of COVID-19 on Consumer Credit -- 2.6 Conclusion: Impact of Consumer Credits on Growth and on Stability -- Bibliography -- 3 The Changing Landscape of Providing Consumer Credit -- 3.1 Factors Influencing Recent Changes in the Consumer Credit Landscape -- 3.2 Assessment of the Size of Digital Activity in Providing Consumer Credits -- 3.3 New Business Models, Opportunities and Risks for Consumers and Providers -- General Factors-Technology -- Legal Environment -- Types of Credits and Selling Channels -- Profiling and Personalization -- Changes in the Process of Providing Financial Products -- Consumer Protection Issues -- 3.4 Changes in Structures: Cooperation or Competition Between Incumbent and New Providers? -- 3.5 Conclusion -- References -- 4 Regulatory Framework of the Consumer Credits Market in Europe -- 4.1 Legal Framework of the Functioning of the Market -- 4.2 Specificity of Financial Law Protecting Consumers -- Reasons for Consumer Protection -- Potential Reasons for Non-compliance: Balance of Costs and Benefits -- 4.3 European Legislation Protecting Consumers When Taking Consumer Credit -- History of Consumer Credit Directive -- The Contents of Consumer Credit Directive -- Level of Compliance with CCD -- 4.4 Other Legislation Protecting European Consumers When Taking Consumer Credit -- Mortgage Credits Directive.

This book provides a comprehensive outlook on the state and role of consumer credits in the European economy and households. It underlines the role of consumerism and digitalisation, in the framework of legislation. It covers two major turns in consumer credit evolution: the 2008 crisis and Covid pandemic. The first had socio-economic sources, the second one was an external event, but provoked important changes in consumer behaviour. Lockdowns deepened the preference for digital financial products. FinTech and BigData operators acquired broader opportunities with the development of distance services. These new financial services need adapted legislation. The recently published project of Consumer Credits Directive covers new means of communication, such as smartphones, and extends rules to new ways of crediting, like crowdfunding. Consumer credit availability changed the behaviour of households. The propensity of poorer households to save faded due to the ease of getting credit. However, financial insecurity during the Coronavirus pandemic made households limit credits and build precautionary savings.