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CERIL Report 2022-3 on Consumer Rights in Restructuring and Insolvency

In its Report on Consumer Rights in Restructuring and Insolvency, CERIL finds that whereas increased consumers’ protection has been a goal for the EU for decades, European insolvency legislation (regulations, directives)  are less concerned with consumers. However, private citizens confronted with insolvency of their counter parties, many times only have the weak position of an unsecured creditor. CERIL recommends for a European discussion on the possible improvement of the position of consumers in restructuring and insolvency proceedings in three areas: their right of continued information, their representation in these proceedings and the strengthening of their financial claims.

The scattered and diffuse bargaining power of consumers may require some regulatory solutions that help balance their disadvantageous procedural position. Clear and consensual solutions are yet to be presented, but the discussion must be further developed. It is recommended that the European Commission will arrange, under its aegis in collaboration with several European universities and European consumer organisations, a discussion to further clarify and possibly strengthen a consumer’s position in case of insolvency or preventive restructuring of a company to which the consumer is a client/customer. The Reporters present an agenda with key topics for this dialogue.

Working Party Involvement

The Reporters (Profs. Catarina Frade and Annina H. Persson) express their gratitude for the active involvement of the members of the Working Party 4 on consumer rights. The Reporters would like to express their gratitude for their insightful contributions to Prof. Kim Sommer Jensen (Denmark); Prof. Tuula Linna (Finland); Prof. Lorenzo Benedetti (Italy); Prof. Joanna Kruczalak-Jankowska and Monika Maśnicka (Poland); Marie Meling (Norway); Dr. Miodrag Đorđević, Pija Okoren and Blaž Možina (Slovenia), Prof. Ana Conceição (Portugal); and Prof. Yolanda Bergel Sainz de Baranda (Spain).

This Statement and Report were prepared by:

Reporters:

  • Prof. Catarina Frade
  • Prof. Annina H. Persson

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