The sphere of lending according to the legislation of Ukraine and the EU regarding the protection of consumer rights

The article examines the peculiarities of the protection of consumer rights in the field of lending under the legislation of Ukraine and the EU from the point of view of bringing national legislation into line with the requirements of EU law in this area. It was determined that the EU is actively working on improving legal mechanisms for the protection of consumer rights in the field of consumer credit through the adoption of new acts. The article analyzes individual changes in this area, as well as outlines the reasons for such changes. In modern banking practice, a fairly wide list of types of consumer loans is used, the main classification features of which are: types of creditors; types of borrowers; repayment methods; terms of use; degree of credit coverage of the cost of goods, works, and services; software; interest payment methods; lending facilities, loan amounts, loan currency, etc. But the presence of a large number of banking products does not exclude the possibility and does not reduce the need for their further development and expansion, which should contribute to the development of consumer lending in general. The level of socio-economic development of the country directly affects the development of consumer lending, at the same time, the dynamics of such macro-indicators as gross domestic product, income and expenditure of the population, volumes of services provided, retail turnover, average monthly nominal wages, etc. have the greatest influence. Consumer lending has a higher efficiency compared to corporate lending, and this is explained not only by its high profitability, but also by the presence of additional income that accompanies the provision of consumer loans. At the same time, the effectiveness of consumer lending depends on the terms of granting, and accordingly, short-term consumer loans are more effective. Therefore, the performance of banks in general as part of the banking system of Ukraine depends on how the mechanism of consumer lending in banking institutions is formed, how regulation and regulation of consumer lending is carried out. Positively evaluating the adoption of the relevant Law in 2016, the author notes the need for its revision and improvement, taking into account Ukraine’s European integration progress, as well as the importance of preserving the economic well-being of the population of our state in the face of a full-scale invasion. According to the author, the corresponding changes should concern the requirements for information about consumer credit, the specifics of its conclusion from the point of view of accompanying financial instruments, as well as the simplification and improvement of legal mechanisms for early termination of consumer credit contracts.