Information disclosure in the EU Consumer Credit Directive: opportunities and limitations

Porras, Catherine I. Garcia; Boom, W.H. van

doi:10.1017/cbo9781139003469.004

Cited by 21 publications

(2 citation statements)

References 33 publications

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“…It should be highlighted, however, that the use of the information paradigm to protect the financial services consumer is insufficient and ineffective (Oehler & Wendt, 2017;Howells, 2020). In order to justify the low effectiveness of the information obligation in terms of its impact on consumer decisions, subject literature offers the following (Porras & van Boom, 2012;Wilhelmsson, 2018):…”

Section: Information As a Means Of Protection In The Financial Marketmentioning

confidence: 99%

“…Furthermore, consumers are not in a position to assess certain credit features, such as quality, contract risk, and long-term effects. They rely on advice obtained from lenders, financial advisors, intermediaries, and third parties (Porras & van Boom, 2012). Given the potential problems arising from inadequate communication of information, consumer research carried out by the European Commission demonstrates that information should be comprehensive, written in plain language, and devoid of excessive technical jargon (European Commission, 2009, p. 5).…”

Section: Pre-contractual Information Obligationmentioning

confidence: 99%

See 1 more Smart Citation

Information as a Consumer Protection Instrument on the Consumer Credit Market

Czechowska,

Paduszyńska,

Jędrzejczak

et al. 2024

TEDE

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The aim of the article was to assess the opinions of consumer credit borrowers on the information message provided to them by lenders at the pre-contractual stage. The opinions were presented in the context of the demographic characteristics of the respondents. The research question posed was whether, taking into account demographic characteristics, the assessment of consumer credit borrowers regarding the information message obtained at the pre-contractual stage varied. The research methodology included a questionnaire and Computer-Assisted Telephone Interviewing (CATI). For the information analysis, we employed the following non-parametric tests: the chi-square test of independence, the Mann–Whitney U test and the Kruskal–Wallis H test. No significant differences were observed in all the parameters of the assessment of the information message, which means that the answer to the research question was negative. The findings suggest that even though borrowers may positively assess the compliance with the information obligations by lenders, it does not mean that all credit decisions made were rational and appropriate to their financial situation. Our study focused on the consumer protection and employed non-parametric tests to analyze the consumer credit borrowers’ assessment of the information provided to them by lenders.

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