|
|
EU rules on charges for cross-border euro payments should be modified to improve consumer protection and include direct debit payments, according to a new Commission report. A Revision of these rules should also alleviate the burden of statistical reporting placed on banks and reduce the processing costs of cross-border bank transfers.
The report analyses how the regulation on cross-border payments in euro is applied in the Member States and examines the practical problems encountered in its implementation. It concludes that a number of proposals should be made in order to address the identified issues, better reflect developments in retail financial markets and align the Regulation with the recently adopted Payment Services Directive. All proposals would be subject to a prior impact assessment.
The report concludes that all Member States should set up competent authorities and adequate out-of court redress procedures to better protect consumer rights in cases of disputes between a bank and a customer, or when an erroneous application of the Regulation is detected.
Furthermore, the scope of Regulation should be extended to include direct debits, a payment instrument which was previously not available on a cross-border basis.
Revision and a subsequent phasing-out of the balance of payments reporting obligations imposed on banks in some Member States are also envisaged. These obligations hamper the development of SEPA, as they differ between countries, prevent fully automated processing of cross-border payments and ultimately lead to higher costs for banks and consumers.
A legislative proposal to amend the Regulation could be expected in autumn 2008, on the basis of appropriate impact assessment and consultation.