3.3 Article 2(7) of CCD2

Under Article 2(7), Member States may decide to apply only a limited number of provisions of the CCD2, notably exempting creditors from the obligation to perform a creditworthiness assessment in the case of credit agreements, which provide deferred payment arrangements where the consumer is already in default or is likely to default on the initial credit agreement. Such arrangements are permissible where they are likely to avert the possibility of legal proceedings concerning the default and where the consumer would not be subject to less favourable terms than those laid down in the original credit agreement. This is not to prevent consumers in payment difficulty obtaining a new credit agreement to help them to repay their initial credit. Consumers would be considered likely to default in certain situations. For example - where they lost their job.

Question 3 – Should credit agreements in respect of deferred payments where the consumer is in or likely to be in default be exempt from the specific provisions of CCD2 relating to creditworthiness assessments?