Debt Counseling from the Directive No. 2023/2225 on Credit Agreements for Consumers and Perspectives for Transposition

Abstract

The present research aims at analysing the regulation of debt advice at European level contained in Directive 2023/2225. The research reveals, at this date, at the national level, the lack of express regulation for the conduct of independent, impartial counselling of people in debt or about to become in debt. The research also identifies that the only category of counselling known and regulated at the national level, where credit is the main source of indebtedness, is consumer counselling by creditors and credit intermediaries. The regulation of independent debt advice under Directive 2023/2225 has yet to be transposed at the national level. The challenge of identifying the entity/entities that will provide independent debt advice is the one to which this study responds, and has profound social-economic implications, as this category of advice is a solution to prevent over-indebtedness.

Keywords

• (over) indebtedness
• debt counselling
• financial services
• financial education
• consumer associations
• consumer information and advice centres
• prevention of financial exclusion
• vulnerable consumers