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ENCU Urges European Commission to Consider the Credit Union Difference in Cross-Border Transactions

The European Network of Credit Unions (ENCU) filed its comment letter on the European Commission's Consultative Document on Transparency and Fees in Cross-Border Transactions in the EU.  In its comments ENCU urged the EC to consider the disproportionate impact that the proposed regulations may have on smaller credit unions, noting that it may result in certain under-served markets being alienated.  Further it noted that credit unions, being member owned, not-for profit organizations will always seek the most efficient pricing for their members.

A copy of the letter can be viewed here.

 

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European Commission

ENCU Comments on EC Development of Secondary Markets for Non-Performing Loans

The European Network of Credit Unions (ENCU) filed its comments with the European Commission on the Consultation on Development of Secondary Markets for Non-Performing Loans and Distressed Assets and Protection of Secured Creditors from Borrowers' Default.

In its letter ENCU stated that national-level legal frameworks for loan secondary markets strike the appropriate balance for the Member State and opposed EU-level intervention.  Further, that such intervention could unduly disadvantage credit unions who are often second-lien creditors.

Regarding new out-of-court “accelerated loan security” mechanisms, ENCU supported carving out consumer loans from this approach but also urged the Commission not to make loans to small businesses subject to this regime.  ENCU argued that small-business owners are typically physical person consumers who are self-employed and have usually either borrowed as a physical person (such as in the case of a sole trader) or have personally guaranteed loans to their small business if they have incorporated the small business as a legal entity, meaning that social equity grounds militating against applying an accelerated loan security instrument to consumer loans also apply to loans made to small businesses.

A copy of the letter can be viewed here.

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European Commission