Blurred Lines: Between Formal and Substantive Transparency in Consumer Credit Contracts

This is the author accepted manuscript. The final version is available from Kluwer Law InternationalDirective 2008/48/EC aims to guarantee a high level of consumer protection and comparability of consumer credit offers, protecting consumers against over-indebtedness. In light of the ongoing review of this directive, it is important to consider whether the principle of transparency could not play a bigger role in ensuring that consumers are provided with understandable consumer credit information. The authors argue, therefore, that the assessment of the credit information’s transparency should go beyond a mere compliance check with formal aspects of transparency, i.e. whether consumers had access to the information and whether it was legible. At least an equal amount of consideration should be paid to aspects of the substantive transparency, i.e. whether consumers ultimately understood the information. Moreover, the European Commission should strengthen the consumer credit transparency toolbox by explaining the meaning and significance of various transparency requirements, and re-check the effectiveness of the standardised credit information.NWO - Netherlands Organisation for Scientific Researc

Transparency of (Pre-)Contractual Information in Consumer Credit Agreements: Is Consistency the Missing Key?

This article shows that there is a lack of consistency in the interpretation of the meaning and scope of the obligation of traders to provide transparent pre-contractual and contractual information on consumer credit to consumers in EU law. On the basis of an analysis of transparency requirements prescribed by the Unfair Contract Terms Directive and the Consumer Credit Directive, differences in the under-standing of transparency are highlighted. While the transparency test under the Unfair Contract Terms Directive focuses on the question of comprehensibility of credit information, the transparency test under the Consumer Credit Directive focuses on the format, position, length and font size of information. Consequently, the transparency of the same information provided in the course of concluding a consumer credit agreement could be evaluated differently on the basis of these two directives. This lack of consistency in the interpretation of transparency might pose a particular problem for national enforcement authorities. In the example of Croatia, it is demonstrated that the lack of guidance and consistency in the interpretation of various transparency requirements in the area of consumer credit at the EU level leaves space for national enforcement authorities to develop their own understanding of trans-parency. Where national enforcement authorities develop a narrower approach to transparency, consumers can be deprived of the protec-tion guaranteed by EU law. In areas such as consumer credit, where the obligation of the transparent provision of information is the main tool of consumer protection and market integration, ensuring greater consistency in the interpretation of the content of this obligation is the key to ensuring its effectiveness

ABC of online consumer disclosure duties: Improving transparency and legal certainty in Europe

This is the author accepted manuscript Following a series of complimentary studies assessing the current application of the principle of transparency of consumer information in Croatia, Germany, Poland, the Netherlands, and the United Kingdom, this paper presents research findings on how to improve its effectiveness. Documented differences in national laws and practice indicate the need for a more harmonised approach on the level of the European Union. This demand also arises from the interviews the research team has conducted with various national stakeholders. Whilst the legislative transparency requirements could remain general, e.g., a duty for traders to provide consumer information in “plain and intelligible language”, traders, consumers and enforcement authorities all require more legal certainty as to what amounts to compliance with these requirements. Based on the stakeholders’ suggestions, an interdisciplinary literature review, findings from doctrinal, comparative legal research, and a conducted quantitative study, the paper recommends empirically-motivated, multimodal guidelines to implement textual, contextual and technical measures.Netherlands Organisation for Scientific Researc