Political figures from the CDU and SPD parties are refusing to support fresh funding for coronavirus consumer relief.
In the midst of the ongoing COVID-19 pandemic, German politicians are engaging in a debate over consumer protection measures, particularly in relation to debt collection.
The Green consumer protection ministers have penned a letter to the Federal Minister of Justice and Consumer Protection, Christine Lambrecht (SPD), expressing concern over millions of consumers who they believe are currently insufficiently protected from the economic consequences of the pandemic.
However, Johannes Fechner, the SPD's legal policy expert, has described the Green party's initiative as strange, suggesting that the Green party's politics might be driving the letter rather than a genuine concern for consumer protection.
On the other hand, Jan-Marco Luczak (CDU) has stated that the demands are "completely out of touch with reality." Luczak has noted improvements in consumer protection in debt collection law, citing a bill that has already been debated in the Bundestag in the first reading.
The Union's parliamentary group is currently working to return the economy to normality and get it running again. The grand coalition, in its efforts, has put the largest package of power and future of post-war history on the road.
Despite the ongoing debate, specific measures addressing debt collection during COVID-19 and political responses to a Green "consumer rescue shield" remain unspecified in the available information.
However, it is worth noting that broader regulatory environment around consumer protection, including financial services and insolvency proceedings, has evolved to strengthen protections for consumers in debt-related matters. For instance, a recent Court of Justice of the European Union judgment raises compliance standards for firms engaged in consumer debt and insolvency recovery, indicating heightened scrutiny and protection in these areas.
In a positive development, the procedure for debt relief will take three years instead of the current six, as suggested by Fechner. He describes this as a "great help" for over-indebted consumers. The state ministers have also called for restrictions on debt collection companies.
Politicians from the Union and SPD have rejected the demand by several Green state consumer protection ministers for a "consumer rescue shield." The aid measures already decided are working, and social security systems have been made more flexible to cushion economic hardships.
As the debate continues, it remains to be seen how these discussions will shape consumer protection policies in Germany during and beyond the pandemic.
The Green consumer protection ministers appear to be pushing for a new policy-and-legislation, known as the "consumer rescue shield," to protect consumers from the economic impacts of the pandemic. However, this proposal has been met with criticism from politicians, such as Johannes Fechner, the SPD's legal policy expert, who suggests that it may be more about politics than genuine concern for consumers. On the other hand, general-news articles report changes in other areas of consumer protection, such as a three-year extension for the debt relief procedure and increased compliance standards for firms engaged in consumer debt and insolvency recovery, as a result of recent court judgments and legislation.
