The financial crisis had a substantial impact on EU citizens. Although an important contributing factor was the growth in securitization, which allowed creditors1 to pass the risk of their lending portfolios to investors, consumers have faced the consequences firsthand. Many have lost confidence in the financial sector and certain lending practices that used to prevail are now having a direct impact. As borrowers have found their loans increasingly unaffordable, defaults and foreclosures have risen. Addressing irresponsible lending and borrowing is therefore an important element in financial reform efforts.