The European Commission has adopted a revised proposal for a consumer credit directive, which aims to unify consumer rights across the EU.
The directive was first proposed in October 2004. "This new draft maximises the benefits to consumers while keeping 'red tape' to a minimum", said Markos Kyprianou, Commissioner for Health and Consumer Protection. "This Directive makes it simpler for consumers to compare the cost of credit and easier for industry to offer credit across borders". Changes to the Commission's first proposal includes a focus on credit of up to 50,000 Euro, to cover the most common consumer contracts, the right to repay a loan early, the right to break a credit contract if the purchase is cancelled, and a 14-day right of withdrawal.
The issue of mortgage credit is to be addressed separately. Greater flexibility for member states to adapt certain rules to their own particular situations is also included in the text. The single market ethos is protected through a Mutual Recognition clause. "The changes we have made, which reflect many of the concerns expressed by MEPs, Council and our consultations with stakeholders, should also facilitate the adoption of the proposal next year", Mr Kyprianou states.
By: N. Peter Kramer
