11 September 2003

Consumer Credit Directive probably sent back to Commission

The proposal on the Directive on consumer credit will probably be sent back to the Commission for a complete redrafting after members of the European Parliament's Legal Affairs Committee voted not to adopt the text. Rapporteur Joachim Wuermeling said that the proposal does not take any account of the realities of the credit market beyond consumer protection and will lead to higher interest rates and bureaucracy.

However, a spokesman for the Commission insisted that it was a “valid proposal” and questioned the legality of rapporteur's move. The decision followed a letter from the Commission to different Committees and the rapporteur from end July stating that the Commission will prepare a revised proposal after first reading in Parliament.

Committees decision will have to be proved by on of the next plenary sessions, most probably end October.

Draft report
Commission letter
Press release (german)
Background paper (german)

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