Consumer Credit Directive, Limits on the Data a Creditworthiness Assessment May Use (Articles 18(3) and 19(5))

Article 18(3) requires the creditworthiness assessment to be carried out on the basis of relevant and accurate information on the consumer's income and expenses and other financial and economic circumstances that is necessary and proportionate to the nature, duration, value and risks of the credit for the consumer.

Article 18(3) provides that the information on which the assessment is carried out shall not include special categories of data referred to in Article 9(1) of Regulation (EU) 2016/679. Article 18(3) provides that social networks shall not be considered as an external source for the purpose of the Directive.

Article 19(5) provides that creditors and credit intermediaries shall not process special categories of data as referred to in Article 9(1) of Regulation (EU) 2016/679 and personal data processed from social networks that may be contained in the databases referred to in Article 19(1).

Article 3, point (2), defines a creditor as a natural or legal person who grants or promises to grant credit in the course of that person's trade, business or profession.

Article 3, point (12), defines a credit intermediary as a natural or legal person that is not acting as a creditor or notary and not merely introducing a consumer to a creditor, and who, in the course of that person's trade, business or profession and for remuneration, presents or offers credit agreements to consumers, assists consumers by undertaking preparatory work or other pre-contractual administration in respect of credit agreements other than presenting or offering them, or concludes credit agreements with consumers on behalf of the creditor. Article 2(1) provides that the Directive applies to credit agreements.

Article 2(2), point (a), excludes from the Directive credit agreements secured by a mortgage, or by another comparable security commonly used in a Member State on immovable property, or secured by a right related to immovable property. Article 2(2), point (c), excludes from the Directive credit agreements involving a total amount of credit of more than EUR 100,000.

Article 2(3) applies the Directive to a credit agreement of more than EUR 100,000 that is not secured by a mortgage, by another comparable security on immovable property or by a right related to immovable property, where its purpose is the renovation of a residential immovable property.

Article 2(2), point (l), excludes from the Directive credit agreements existing on 20 November 2026, but Articles 23 and 24, Article 25(1), second sentence, Article 25(2) and Articles 28 and 39 apply to all open-end credit agreements existing on that date.

Article 44(1) requires Member States to lay down the rules on penalties applicable to infringements of the national provisions adopted pursuant to the Directive, and provides that the penalties must be effective, proportionate and dissuasive. Article 48(1) requires Member States to adopt and publish by 20 November 2025 the laws, regulations and administrative provisions necessary to comply with the Directive, and to apply those measures from 20 November 2026.