[From the Introduction] Following the political changes of the late 1980s and early 1990s, the Central and East European countries (CEECs) experienced the birth of a new economic environment. A new banking system has been set up and new market players have started to provide a wide range of financial services. Many of the newcomers concentrated on the most profitable areas of banking operations, which did not include retail finance – at least in the first round. Those institutions that played a leading role in this market segment did not lose their position, but as more and more institutions started operations in the retail field, they acquired a continuously growing market share. These new retail service providers were forced to turn to a wider range of services because of the increasing competition in the corporate market. In addition it is worth mentioning that some consumer credit specialists are also present in the CEECs, and they are looking for ways to expand their business in the region. Retail markets are becoming more attractive for financial service providers, and the Central and East European countries have had to establish an adequate regulatory environment for this emerging and developing sector. At the same time, these countries have applied for EU membership, the basic criterion of which is compliance with European regulation. Different countries have used different methods to put their law in line with the relevant EU rules. Therefore, the CEECs will have to comply with consumer-related EU rules and establish policies in this context. Central and Eastern European regulators must make a policy choice: whether to follow a protectionist consumer policy or whether to support the development of free market access, with a satisfactory level of consumer protection. This is a policy decision, but compliance must be reached on the regulatory level: national rules must implement the EU consumer credit directives
