The Consumer Credit Directive Revamped

Introduction

Personal loans and overdrafts, credit cards and short-term credit products are amongst the commonest consumer lending products offered by banks and financial institutions to satisfy a variety of consumer needs. These products need to be distinguished from home loans (typically secured by hypothecs over immovable property) and which are the subject of a different, albeit complementary regulation. Consumer credit regulation also may however also impact other "non-bank" lenders (or creditors) such as merchants or businesses offering their customers deferred payments options for goods and services.

On the 9 October 2023, the European Council adopted the revised Consumer Credit Directive ("CCD II" or the "Revised Directive") which forms part of the European Commission's 'New Consumer Agenda'. CCD II supersedes Directive 2008/48/EC ("CCD I") implemented a decade and a half ago across the EU. CCD I had been transposed into Maltese law in 2010 by the