Indexation Of Consumer And Mortgage Credit In Iceland In 2014: A Critical Battle Between Legality, Fairness And Legitimacy
Six years after the financial crisis that led to the collapse of the banking system in 2008, the over-indebtedness of households is one of the most important problems in Iceland. This study aims to cast light on a specific feature of the Icelandic credit system in connection with the problem of over...
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ftssbfnetojs:oai:ojs2.www.ssbfnet.com:article/386 2023-05-15T16:46:04+02:00 Indexation Of Consumer And Mortgage Credit In Iceland In 2014: A Critical Battle Between Legality, Fairness And Legitimacy Pinedo, Maria Elvira Mendez 2014-07-21 application/pdf https://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/386 eng eng SSBFNET https://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/386/353 https://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/386 Copyright (c) 2014 International Journal of Finance & Banking Studies (2147-4486) http://creativecommons.org/licenses/by-nc/4.0 CC-BY-NC International Journal of Finance & Banking Studies (2147-4486); Vol. 3 No. 4 (2014): October; 41-67 2147-4486 10.20525/ijfbs.v3i4 Indexation of credit European Economic Area Consumer law Iceland info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Peer-reviewed Article 2014 ftssbfnetojs https://doi.org/10.20525/ijfbs.v3i4 2022-12-09T10:06:25Z Six years after the financial crisis that led to the collapse of the banking system in 2008, the over-indebtedness of households is one of the most important problems in Iceland. This study aims to cast light on a specific feature of the Icelandic credit system in connection with the problem of over-indebtedness. The main research question is whether the end of indexation of credit is close or not. The author argues, in the first place, that indexation of credit ex-post to the consumer price index (CPI) in negative amortization schemes is responsible for over-indebtedness. In the second place, the author describes the challenges ahead in the field of consumer and mortgage credit in Iceland in the light of European law (European Union EU and European Economic Area EEA). The incorporation of Directive 2008/48 on credit agreement for consumers to the Icelandic domestic order through the EEA Agreement allowed a preliminary legal review of the practice in light of EU/EEA consumer credit law, both at national and European level without a final conclusion. It has nevertheless led to the judicial review on the legality of some indexation alleged malpractices before national courts and to the EFTA Court for interpretation (mostly on Directives 93/13/EEC on unfair terms 87/102/EEC on consumer credit). A ruling from the Supreme Court is expected on several cases. A critical battle between the legality, the fairness and the legitimacy of indexation of credit is taking place in Iceland under the influence of European law. Article in Journal/Newspaper Iceland SSBFNET Center for Strategic Studies in Business and Finance: OJS (Society for the Study of Business & Finance) International Journal of Finance & Banking Studies (2147-4486) 3 4 41 67 |
institution |
Open Polar |
collection |
SSBFNET Center for Strategic Studies in Business and Finance: OJS (Society for the Study of Business & Finance) |
op_collection_id |
ftssbfnetojs |
language |
English |
topic |
Indexation of credit European Economic Area Consumer law Iceland |
spellingShingle |
Indexation of credit European Economic Area Consumer law Iceland Pinedo, Maria Elvira Mendez Indexation Of Consumer And Mortgage Credit In Iceland In 2014: A Critical Battle Between Legality, Fairness And Legitimacy |
topic_facet |
Indexation of credit European Economic Area Consumer law Iceland |
description |
Six years after the financial crisis that led to the collapse of the banking system in 2008, the over-indebtedness of households is one of the most important problems in Iceland. This study aims to cast light on a specific feature of the Icelandic credit system in connection with the problem of over-indebtedness. The main research question is whether the end of indexation of credit is close or not. The author argues, in the first place, that indexation of credit ex-post to the consumer price index (CPI) in negative amortization schemes is responsible for over-indebtedness. In the second place, the author describes the challenges ahead in the field of consumer and mortgage credit in Iceland in the light of European law (European Union EU and European Economic Area EEA). The incorporation of Directive 2008/48 on credit agreement for consumers to the Icelandic domestic order through the EEA Agreement allowed a preliminary legal review of the practice in light of EU/EEA consumer credit law, both at national and European level without a final conclusion. It has nevertheless led to the judicial review on the legality of some indexation alleged malpractices before national courts and to the EFTA Court for interpretation (mostly on Directives 93/13/EEC on unfair terms 87/102/EEC on consumer credit). A ruling from the Supreme Court is expected on several cases. A critical battle between the legality, the fairness and the legitimacy of indexation of credit is taking place in Iceland under the influence of European law. |
format |
Article in Journal/Newspaper |
author |
Pinedo, Maria Elvira Mendez |
author_facet |
Pinedo, Maria Elvira Mendez |
author_sort |
Pinedo, Maria Elvira Mendez |
title |
Indexation Of Consumer And Mortgage Credit In Iceland In 2014: A Critical Battle Between Legality, Fairness And Legitimacy |
title_short |
Indexation Of Consumer And Mortgage Credit In Iceland In 2014: A Critical Battle Between Legality, Fairness And Legitimacy |
title_full |
Indexation Of Consumer And Mortgage Credit In Iceland In 2014: A Critical Battle Between Legality, Fairness And Legitimacy |
title_fullStr |
Indexation Of Consumer And Mortgage Credit In Iceland In 2014: A Critical Battle Between Legality, Fairness And Legitimacy |
title_full_unstemmed |
Indexation Of Consumer And Mortgage Credit In Iceland In 2014: A Critical Battle Between Legality, Fairness And Legitimacy |
title_sort |
indexation of consumer and mortgage credit in iceland in 2014: a critical battle between legality, fairness and legitimacy |
publisher |
SSBFNET |
publishDate |
2014 |
url |
https://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/386 |
genre |
Iceland |
genre_facet |
Iceland |
op_source |
International Journal of Finance & Banking Studies (2147-4486); Vol. 3 No. 4 (2014): October; 41-67 2147-4486 10.20525/ijfbs.v3i4 |
op_relation |
https://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/386/353 https://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/386 |
op_rights |
Copyright (c) 2014 International Journal of Finance & Banking Studies (2147-4486) http://creativecommons.org/licenses/by-nc/4.0 |
op_rightsnorm |
CC-BY-NC |
op_doi |
https://doi.org/10.20525/ijfbs.v3i4 |
container_title |
International Journal of Finance & Banking Studies (2147-4486) |
container_volume |
3 |
container_issue |
4 |
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41 |
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67 |
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