15 May 2007

EFBS: Consumer credit directive missing its aim

The EFBS fears severe disadvantages for consumers and the credit industry resulting from the compromise text of the EU Consumer Credit Directive prepared by the German Council Presidency. The text gives Member-State governments that much scope in transposing the Directive into national law so that uniform framework conditions for consumers and the credit industry are far from reality. „The existing patch-work text has simply been replaced by another one“, says Mr Zehnder, Managing Director of the Federation. „On balance, this means that the credit industry, although required to meet substantial amounts of transposition costs, would still have no opportunity for offering its products across the European Union“, continued Mr. Zehnder.

The competitiveness Council is due to reach a political agreement on its next meeting on 21 May.

The proposal contains a number of inconsistencies ultimately representing disadvantages to consumers, EFBS argues, particularly pointing to the fact that renovation loans and ordinary consumer credit are treated alike. „The German Government could do more in terms of protecting consumer interests than just pay lip-service by leaving the Directive’s present scope of application intact “, demands Mr Zehnder.

Press release

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