The European Commission has adopted a new set of rules which strengthen consumer protection in the field of online financial services, in particular on the delicate subject of withdrawal. It remains to convince the Council and the Parliament of the EU.
With the distance marketing of financial services over the past two decades, consumer protection regulation has struggled to keep up. European authorities have been able to notice this all the more with the COVID-19 pandemic and the acceleration of online purchases. Thus, the European Commission has just adopted, this Wednesday, May 11, the proposal for a reform of the rules currently in force in the EU. It has a good chance of succeeding in strengthening the rights of consumers and customers of online banks and other financial services.
Brussels wants a “withdrawal button” on financial services sites
The European Commission makes the 14-day right of withdrawal a priority. She believes that it is not always easy for consumers to find the necessary resources to benefit from them, in particular for distance contracts for financial services.
So, to facilitate the exercise of this right, Brussels wants to require professionals to have a withdrawal button on their site, which must be clear and easily identifiable. The professional, the online bank for example, must also send a notification of the right of withdrawal in the event that the pre-contractual information is sent less than one day before the conclusion of the contract.
And precisely, let’s talk about this pre-contractual information. The Commission proposes to modernize the rules in this area, in particular communication by e-mail. It wants to impose on the seller the obligation to provide ” straight away » information such as the trader’s email address, potential hidden costs and financial service risk.
” Information must also be displayed prominently on the screen, and rules are introduced regarding the use of pop-ups or tiered links to provide information “, specifies the Commission. It insists that the consumer have sufficient time to assimilate and understand the information received by the professional. Ideally, this should be at least one day before signing.
All online banks will have to offer consumers a remote human interlocutor
When concluding an online financial service contract (a loan, an investment in the stock market, an investment, a bank transfer, etc.), it is possible that the consumer may find it difficult to understand, all the more so when he is remote. This is why the EU wants to compel professionals to set up online systems both ” fair and transparent “. They will have to provide explanations when Europeans use online tools, such as chat boxes or automated advice. And, in the event that the consumer finds that the online tool is not sufficient to answer his questions, all the sites will have to offer the human alternative.
If successful, and there is a good chance it will be, the Commission’s proposal will make it possible to apply tougher penalties for financial services contracts concluded at a distance in the event of a major cross-border infringement. Brussels raises the possibility of a fine of at least 4% of annual turnover.
Full legal harmonization will have to be found between all Member States. The next steps must be the examination of the proposal before the Council and then the Parliament.
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