The Office of Competition and Consumer Protection (UOKiK) is currently holding public consultations on a new draft Consumer Credit Act. This legislation aims to implement the EU directives CCD2 and 2023/2673 concerning consumer credit and distance financial services agreements. However, the draft has sparked controversy and criticism from business organizations, including the Lewiatan Confederation.
Criticism of the Draft — Obstacles for Business and Risks of Instability
According to the Lewiatan Confederation, the current form of the draft law places many unnecessary hurdles before businesses, mainly due to unclear and poorly developed provisions. This increases the risk of instability within the entire financial system and introduces solutions that could be detrimental to consumers. Adrian Zwoliński, director of the financial market and corporate law department at Lewiatan, points out that the draft partly misimplements the EU directives’ requirements, which calls for more thorough consultations and cooperation between UOKiK, government ministries, the Financial Supervision Authority, as well as business and expert communities.
Harsh and Disproportionate Sanctions
Particularly controversial are the provisions regarding sanctions for violations of free credit rules. The draft envisions severe consequences—including the requirement to return the loan without interest or costs—simply for violating the provisions, regardless of the severity of the offense. Such a sanction mechanism risks punishing minor mistakes on the same level as serious breaches, which is disproportionate and threatens the financial stability of lenders.
Moreover, the proposed deadline for consumers to exercise sanction rights—one year after full repayment—may encourage dishonest practices like intentional non-repayment of loans. This could lead to stricter lending policies by financial institutions and an increase in legal disputes. Paradoxically, this mechanism could harm consumers themselves.
Uncertainties in Creditworthiness Assessment and Other Issues
Another significant concern involves how the draft regulates creditworthiness assessments. While it requires lenders to check information from databases about the consumer’s financial situation, it does not specify how this verification should be conducted or what criteria must be met. This lack of clarity complicates effective enforcement and may result in flawed implementation of the directives.
The draft also does not address issues related to the use of artificial intelligence in credit processes, introduces provisions that go beyond EU legal requirements without appropriate economic analysis, and raises doubts about the effectiveness of the proposed debt advisory system. Additionally, some rules concerning advertising bans may limit consumers’ access to important information.
Need for Further Consultations and Legislative Work
The Lewiatan Confederation believes that the current Consumer Credit Act draft requires substantial refinement and open, substantive consultations to develop balanced solutions that protect consumers, support the growth of the financial market, and ensure system stability. UOKiK has announced that all feedback received during consultations will be carefully analyzed and considered in the ongoing work on the regulation.
