Access to national credit databases for all EU creditors for both cross-border and domestic mortgage loan transactions

Article 21(1) of the Mortgage Credit Directive states that: “ Each Member State shall ensure access for all creditors from all Member States to databases used in that Member State for assessing the creditworthiness of consumers and for the sole purpose of monitoring consumers’ compliance with the credit obligations over the life of the credit agreement. The conditions for such access shall be non-discriminatory .” The related Recital 60 reads: “ To prevent any distortion of competition among creditors, it should be ensured that all creditors, including credit institutions or non-credit institutions providing credit agreements relating to residential immovable property, have access to all public and private credit databases concerning consumers under non-discriminatory conditions. [...] ” Article 21 (1) MCD clearly requires each Member State to ensure non-discriminatory access “ for all creditors from all Member States ” to databases used in that Member State. The provision makes no distinction between cross-border and domestic credit transactions. MCD states in Article 21 that the purpose of such access by any creditor operating in a Member State should be limited to the assessment of the creditworthiness of a consumer for the sole purpose of monitoring their compliance with the credit obligations over the life of the credit agreement. This means that Article 21 MCD does not allow a Member State to restrict the non-discriminatory access to databases to creditors active in the national territory or providing mortgage loans cross-border. Moreover, Recital 60 MCD corresponding to Article 21 MCD further explains that to prevent any distortion to competition among creditors, all creditors should have access to all public and private credit databases concerning consumers under non-discriminatory conditions. Moreover, Recital 20 MCD, which is part of the first general recitals setting out justification, objectives and general principles of the Directive and recalls the importance of consistency with the framework of Directive 2008/48/EC (the Consumer Credit Directive) in order to ensure coherence and minimise the administrative burden, cannot restrict the scope of the rights and obligations laid down in an operative provision. On this basis, the Commission considers that Article 21 of the Mortgage Credit Directive provides non-discriminatory access to all credit databases established in EU Member States for all mortgage credit providers authorised to operate in at least one EU Member State, irrespective of whether the provision of the credit is in the national territory or cross-border.   Disclaimer: These answers clarify provisions already contained in the applicable legislation. They do not extend in any way the rights and obligations deriving from such legislation, nor do they introduce any additional requirements for the concerned operators and competent authorities. The answers are merely intended to assist natural or legal persons, including competent authorities and Union institutions and bodies in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law. The views expressed in the internal Commission Decision cannot prejudge the position that the European Commission might take before the Union and national courts.