An economic analysis of the EU commission's proposal for a new Consumer Credit Directive: Offering consumers more protection or restricting their options?

Wim Kösters, Stephan Paul and Stefan Stein

No 9, RWI Materialien from RWI - Leibniz-Institut für Wirtschaftsforschung

Abstract: Although the aims of the proposed new CCD are positive, the current draft is unlikely to help to fulfil them. The regulations that are intended to protect consumers seem to work against their interests. They would not make the market more transparent or effective, increase the level of protection, or harmonise legislation throughout the EU. Instead, the proposals (which are well intended but excessive) would weaken the spirit of competition on both the supply and demand sides. Consumer protection with a proper degree of moderation would involve regulation that strikes a balance between the consumer's (1) justified right to protection, (2) obligation to act responsibly and (3) right to self-determination instead of schoolmarmish government intervention. It will become more important to enable consumers to protect themselves. This can only be achieved by providing them with appropriate advice and information; bank regulation is the wrong policy instrument for this.

Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/61148/1/667991999.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwimat:9

Access Statistics for this paper

More papers in RWI Materialien from RWI - Leibniz-Institut für Wirtschaftsforschung Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().