However, lower value credit can have many risks for consumers, especially the most vulnerable. It is therefore essential to assess the situation carefully.

Since 2021, DECO has been part of a broad coalition of Non-Governmental Civil Society Organisations that intend to contribute to a high level of protection of consumer interests in the review of the Consumer Credit Directive. The Coalition has produced a factsheet presenting a set of recommendations in order to assess creditworthiness with regard to low value credits.

The review of the Consumer Credit Directive, currently under discussion, is focusing on the application of creditworthiness assessment requirements for low-value credits. “Although these credits are taken as low risk, the truth is that from the point of view of consumers' economic interests there are real dangers”, they said. In this sense, this factsheet aims to address some of these concerns, presenting ways for the assessment of creditworthiness, before granting the credits, to be effectively rigorous, even with regard to these lower amount credits.

DECO will continue to monitor the amendment of the Directive to make sure that the protection of consumer interests is integrated into its different themes in order to bring more security and confidence in consumer credit.

Many consumers contact DECO's Financial Protection Office with doubts related to managing their family budget in order to guarantee compliance with low-value loans.

If you need support from DECO, get in touch through (+351) 213 710 238, or email