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Small sum cross-border lending “almost impossible” as non-bank lenders call on EU to revise rulebook

4Finance is among a coalition of 100 digital lenders from Poland, Spain, Denmark and Latvia calling on the European Commission to act.

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Over 100 digital lenders from four European countries have written to the European Commission to call for new rules to facilitate small sum, cross-border lending which they argue has become increasingly difficult.

They argue that member states implementing existing rules have “varied widely, ranging from carefully crafted, evidence-based measures seeking to optimise the regulatory framework to the introduction of snap regulations driven by immediate political pressures.”

Speaking at the AltFi Berlin Summit today Jana Orlova, Head of Group Legal Commercial Unit of European lender 4Finance, unveiled the letter, which has been signed by The Polish Association of Loan Institutions, The Spanish Trade Association of Microlenders, the Danish Credit Council and the Alternative Financial Services Association of Latvia.

The Commission is currently reviewing the Consumer Credit Directive (CCD), which regulates much of this industry across Europe.

“Today small sum, cross-border lending is almost impossible,” the letter continues.

“Local interpretation of the CCD also varies, making it more difficult to enter into and bring competition to new markets.”

Among its suggestions sent to Jan Panek, Directorate-General for Justice and Consumers, are specific calls for the CCD to be revised to enable cross-border access to credit bureau information for non-resident businesses and to encourage the benefits of cross-border digital lenders.

“We call for the Commission to encourage regulation that combines strong consumer protection with a concern for access to viable, regulated consumer credit options.”

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Jana Orlova

Head of Group Legal Commercial Unit


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