Index
ability to repay
14, 148, 150–157
access justice
225–228, 231–235
access to credit
2–12, 18–19, 26, 77, 88, 93, 95, 102, 105, 114, 121, 133–134, 136, 140–141, 187, 191, 197, 214–244
and creditworthiness assessment
(
see creditworthiness
)
and responsible lending
215–219, 240–244
access to services
19, 228, 231–233
adverse impact
124, 130
advice, duty of
169, 173(n), 175, 190, 211
affordability
assessment
141, 148, 182
of credit
16, 140, 147
affordable credit
(
see affordability
)
algorithmic
accountability
127
lenders
117
scoring
24, 85, 89, 97–104, 130–135, 139–140
alternative scoring
78, 92, 98–99, 102–104
AnaCredit
95
antidiscrimination
80, 99, 103–104, 130–135, 223, 226–227, 230–231, 234
automated decisions
46, 99, 103, 123–128, 130, 139, 141–142, 165, 184
Aziz (Mohamed) v. Caixa d’Estalvis de Catalunya, Tarragona i Manresa (Catalunyacaixa) (2013)
238
balloon payments
146, 154
banking and Financial Ombudsman (ABF) (Italy)
184, 211
bankruptcy
9, 41, 42(n), 74, 87, 90, 114, 207
Basel Accords
14, 32–34, 36–43, 47(n), 50, 67, 71, 82–83, 84(n)
Basel Committee on Banking Supervision
32, 36
Bathurst Regional Council v. Local Government Financial Services Pty Ltd (2012)
64, 66
bias
algorithmic
102–103, 134–135
behavioral/cognitive
5, 18, 81, 170, 220, 240
downward
52, 73(n)
black box
101, 104
CAMEL classification
137–138
chance, loss of
128, 142, 175, 183–184, 185
Code de la consommation (France)
174, 187
commercial speech
64, 72
Community Reinvestment Act (US)
224, 226
consumer
over-indebtedness
3–5, 10–11, 13, 19, 26, 94–95, 140, 148, 161, 174, 195–196, 211, 215–221, 234, 242–243
protection
3–5, 11, 18, 26, 180, 200–201, 204, 209, 221, 230, 233–234, 237–239, 242–243
Consumer Credit Act (UK)
173, 181, 192, 202, 205–206
Consumer Credit Directive (Directive 2008/48/EC)
14, 41, 95, 111, 144, 146–147, 158–163, 168, 171, 176–177, 198–203, 213
Consumer Credits Directive Proposal (EU)(2021)
44(n), 99(n), 132, 144(n), 161, 163–165, 171, 185–186, 197, 227, 241, 243
Consumer Finance SA v. Ingrid Bakkus et al (2014)
160
Consumer Financial Protection Act (US)
153, 157, 209
Consumer Financial Protection Bureau (US)
114(n), 119, 153–157, 209–210
Consumer Financial Services Action Plan: Better Products, More Choice (2017)
12, 148, 220
contract, freedom of
2, 18, 25, 45, 157, 166, 180, 187, 196, 198, 213, 229–234, 243
COVID-19
38, 44, 214–216, 222
credit
democratization of
4, 16–18, 214–219
granular c. data
95
history (personal)
16–18, 77, 81–86, 97, 117, 154
mortgage
(
see mortgage lending
)
reporting
24, 78–85, 90–97, 104–123, 138–143, 220
scoring
47–48, 82–90, 92, 104, 111, 115, 123–127, 130, 135–141, 217
credit bureaus
77–82, 87–97, 104–105, 111, 117, 121–123, 139, 165
creditor-focused
reading
195
test
148, 160
Crédit Lyonnais (Le LCL) SA v. Fesih Kalhan (2014)
160, 180
credit rating
23, 29, 37, 43, 46–74, 82
credit rating agencies
23, 29–30, 46–57, 73, 75, 135, 197
liability of
57–67, 70–74
Credit Rating Agency Reform Act (CRARA)(US)
54–55
Credit Rating Agencies Regulation (462/13/EU)
14, 53, 56, 58, 64, 68–69
credit reference agencies
89, 90–96, 104, 111, 165
credit registers, public
77–79, 90–95, 111, 139, 165
creditworthiness
and access to credit
19, 93, 120, 215–219, 227–231, 234, 241
and credit risk management
36–45
and ratings
23, 48, 51, 53–55, 65, 68
and responsible lending
1, 14, 75, 138–143, 157, 164, 166–181, 186, 196, 212–214
and securitization
40–41
assessment
28–30, 37, 77–84, 86–97, 98, 104, 121, 131, 135–137, 146–166, 181–199
by association
102
monitoring (of)
50, 61, 81, 100, 135–138, 165, 178, 192
notion
2, 15–17, 21, 23, 29, 74, 178–180
objective
16, 47, 149
right to
71–74
subjective
16, 48, 149
crisis, global financial
6–13, 57, 69, 144, 203, 219–222
crowdfunding
99(n), 133, 145(n)
crunch, credit
18, 216, 221–222
data protection
18, 24, 88–89, 104–130, 138–143, 165
debtor-focused
reading
195
test
148, 160
default
exposure at (EAD)
41, 84(n)
loss given (LGD)
41, 84(n)
probability of (PD)
39(n), 41–42, 82, 84(n), 85
value given (VGD)
41
deny, duty to
25, 178–198, 213, 241
detrimental reliance
65–66, 184
Directive 93/13/EEC (Unfair Contract Terms Directive)
237–238
Directive 2000/43/EC (Racial Equality Directive)
132
Directive 2000/78/EC (Framework Employment Directive)
132
Directive 2003/6/EC (Market Abuse Directive)
55
Directive 2004/39/EC (MiFID I)
14, 56, 169, 173, 174, 176–177, 196, 200, 203
Directive 2004/113/EC (Goods and Services Directive)
132, 133
Directive 2006/54/EC (Gender Equality Directive)
132
Directive 2008/48/EC (Consumer Credit Directive)
,
see Consumer Credit Directive
Directive 2013/14/EU (Credit Rating Agencies Directive)
14, 69
Directive 2013/36/EU (Capital Requirements Directive IV)
14, 38, 56
Directive 2014/17/EU (Mortgage Credit Directive)
,
see Mortgage Credit Directive
Directive 2014/65/EU (MiFID II)
14, 146, 169, 173, 174, 176–177, 196, 200, 203, 212
Directive 2014/92/EU (Payment Accounts Directive)
225, 233
Directive 2019/878/EU (Capital Requirements Directive V)
38
Directive 2021/2167/EU (Credit Servicers Directive)
44
disclosure
precontractual, duty of
81, 116, 144, 151–153, 157, 167–172, 179, 182, 209, 213, 220
discrimination
(
see antidiscrimination
)
disparate impact
131
disparate treatment
131
Dodd-Frank Wall Street Reform and Consumer Protection Act
14, 35, 49, 55, 68, 146, 149–159, 177, 182, 206, 209–210
duty to explain
(
see explain, duty to
)
duty of suitability
(
see suitability duty
)
duty to warn
(
see warn, duty to
)
Equal Credit Opportunity Act (ECOA)(US)
24, 114, 130–131, 139, 151, 226
European Banking Authority
35, 57
Guidelines on creditworthiness assessment
147, 163
Guidelines on Loan origination and monitoring
148
Guidelines on legislative and non-legislative moratoria on loan repayments applied in the light of the COVID-19 Crisis
39
European Commission Joint Report on Social Protection and Social Inclusion (2009)
221, 225
European Commission Public Consultation on Responsible Lending and Borrowing (2009)
12
European Commission Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak
216
European Securities and Markets Authority (ESMA)
35, 57, 146(n)
expected loss
42(n)
explain, duty to
172–174, 176
explanation, right to
101, 124–128, 165
External Credit Assessment Institutions (ECAIs)
47(n), 50, 56–57
extortionate credit bargains
181, 205
Fair and Accurate Credit Transactions Act (FACTA) (US)
114, 117
Fair Credit Reporting Act (FCRA)(US)
24, 110, 114–120, 152
Fair Housing Act (US)
131, 226
Federal Law on Consumer Credit (Switzerland)
193
FICO, score
92
financial product design
145–146, 157, 209
Financial Stability Board
35, 36
Principles for Reducing Reliance on CRA Ratings
68
Principles for Sound Residential Mortgage Underwriting
144, 147–148, 150
Financial Supervision Act (Netherlands)
191
gatekeeper liability
30, 49, 55, 61, 72
General Data Protection Regulation (Regulation 2016/679/EU)
88–89, 103, 113, 116, 120–130, 134–135, 139, 141, 165
Gesetz über das Kreditwesen- KWG (Germany)
179, 188
good faith
duty of
25, 129, 178, 204, 211
in banking contracts
143, 176
hard information
81–82, 83, 135, 137
Home Credit Slovakia a.s. v. Klára Bíróová (2016)
172
Home Mortgage Disclosure Act (HMDA)(US)
151, 226
Home Ownership and Equity Protection Act (HOEPA) (US)
152
housing, right to
26, 197, 221, 228, 235–240
Immovable Property Credit Rating Guidelines (ImmoKWPLV)(Germany)
189
improvident extension of credit
183, 203, 207–208
inclusion
financial
26, 223–227
social
217–218, 223–225, 233, 237, 240
information disclosure
duty
(
see disclosure
)
paradigm
161, 168, 171, 179, 243
Internal Ratings-based approach
33, 36–37, 69, 84(n)
investors-pay (unsolicited ratings) model
51, 52, 59
IOSCO
50(n)
Code for Conduct Fundamentals for Credit Rating Agencies
54, 56, 57, 61
issuers-pay (solicited ratings) model
51, 59
know your customer
relationship
45
rule
176, 211
Kreditwesengesetz – KWG (Banking Act)(Germany)
179, 188(n)
Kušionová (Monica) v SMART Capital (2014)
238
lending revolution
215–217
loan-to-income
144, 147, 161
loan-to-value
11, 144(n), 150, 161
loss of a chance
(
see chance, loss of
)
monitoring
(
see creditworthiness
)
Mortgage Conduct of Business Rules (UK)
147, 181(n), 192–193
Mortgage Credit Directive (2014/17/EU)
14, 25, 41, 90, 95, 147,158, 160–166, 168, 174–194, 199, 202
mortgage loans/contracts
7, 40, 146–166, 168, 182, 192, 208, 240, 243
Mortgage Market Review (UK)
11, 181, 192
Mortgage-Reform and Anti-Predatory Lending Act (US)
146(n), 153
nationally recognized statistical rating organizations (NRSROs)
54, 59, 67–68
NPLs
13, 18, 43, 44, 45, 197, 216, 222, 243
NY Times Co. v. Sullivan (1964)
49
OFT Guidance, Irresponsible lending – OFT guidance for creditors
181, 912
OPR-Finance s.r.o. v GK (2020)
182
originate to distribute (model)
32, 40, 49, 219
originate to hold (model)
32, 40
over-reliance (on credit ratings)
30, 53, 57–58, 67–71
payday loans
6, 103, 212
‘plain vanilla’ mortgages
155
portfolio risk
29, 36(n), 38, 41–42, 47
precontractual
duties
25, 144, 149, 162, 167–199, 213, 240
information
(
see disclosure
)
liability
62, 182, 184
predatory
loans
7–8, 18, 25, 103, 141, 158, 219, 222
mortgage lending
152, 153
Privacy Act (US)
109–110
pure economic loss
66, 67, 70, 72, 196
qualified mortgage
149, 154–155, 162, 170
rating
issue
48, 49
issuer
48
reckless credit
194, 207–208
registers, credit
(
see credit
)
Regulation 462/13/EU
(
see Credit Rating Agencies Regulation
)
Regulation 575/2013/EU (Capital Requirements Regulation)
14, 38
Regulation 2016/679/EU
(
see General Data Protection Regulation
)
Regulation 2017/2394/EU (Consumer Protection Cooperation Regulation)
200
Regulation 2019/876/EU (Capital Requirements Regulation II)
38
relationship lending
81, 85, 136–137
reputation collateral
81
responsible
borrowing
3, 10, 13, 18, 140, 141, 161, 164, 204, 225
credit
3–15, 57–71, 77, 138–143, 144–146, 158–161, 166–214, 215–216, 221, 227, 229, 231, 240–244
credit, enforcement
199–213
lending
3–15, 17–19, 25–27, 94, 103, 138–143, 146–147, 150–151, 157–161, 164, 166–194, 199–212, 215–219, 240–244
Sánchez Morcillo (Juan Carlos) and María del Carmen Abril García v. Banco Bilbao Vizcaya Argentaria SA (2014)
238
SCHUFA
88, 92, 114, 125(n)
Schyns v. Belfius Banque SA (2019)
177, 186–187
scoring, credit
(
see credit, scoring
)
securitization
4–7, 31, 38–41, 76, 137, 196, 222
services of general interest
225(n), 232–233, 234
small business
lending
76, 81, 83, 135–138
scoring
84, 135–138
social force majeure
11, 242
soft information
81–83, 137–137
solicited rating
(
see issuer-pays model
)
South African National Credit Act
194
subprime
crisis
4–9, 81, 151, 164
loans
155, 242
market
6–7, 196, 206
suitability
doctrine
176
duties
157, 169, 175–178, 196, 211, 231, 235
rules
174, 176, 177
Test-Achats (Association belge des Consommateurs) ASBL v Conseil des ministres (2011)
133
Testo Unico Bancario (Italy)
112, 172, 180, 184, 189, 191
Truth in Lending Act (TILA) (US)
8, 151, 153, 167–171
Ultimo Portfolio Investment (Luxembourg) SA v. KM (2021)
182
unconscionability
25, 204–207, 210–211, 241
unfair contract terms
237
unfairness (of a credit agreement)
205–206
unsolicited rating
(
see investors-pay model
)
warn, duty to
169, 171(n), 172, 174–175, 176–177, 178, 188, 190(n), 196, 211, 213
welfare state
4, 217–218, 219, 233, 236
World Bank
219
General Principles for Credit Reporting
93
Global Financial Development Report 2013
24, 93, 95, 140
Global Survey on Consumer Protection and Financial Literacy
6, 11
Responsible Lending. Overview of Regulatory Tools
144