The Proposal for a new Directive concerning Credit for Consumers

 

Since 1995 the Commission has repeatedly reviewed the operation of directive 87/102/EEC for the approximation of the laws, regulations and administrative provisions of the member states concerning consumer credit. This was regarded to be necessary mainly for two reasons: firstly, even at the time of the enactment of the original directive its level of protection was lower than in most member states; secondly, the Commission repeatedly emphasised several changes, which had taken place in regard to the credit services sector in recent years. Whereas the previous directive was targeted at the two most common "products" at that time, namely hire purchase agreements and instalment credit and reflected the cash-based society of that time, the range of products presently offered is much more colourful.

Although these developments have led to some changes in several national laws, there exists no common standard of protection on the European level. Consequently, consumers lack confidence and there is scarcely any cross border business. Needless to say, this phenomenon also constitutes a serious obstacle to the completion of the single market. The Commission was aware of this problem: in a discussion paper from July, 2001, several interest groups such as the credit services sector as well as consumer friendly organisations were invited to comment on the necessary changes. The result of this consultation process was the publication of six guidelines on a necessary revision of the old directive. On 11 September  2002 the proposal for a new directive concerning credit for consumers was finally presented.

Two examples shall illustrate how the 1987-directive was implemented. Whereas the German legislator chose to enact...