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Parliament did not follow the Commission's approach of maximum harmonisation, as this would add too much a bureaucratic burden to banks without enhancing client protection. The committee therefore voted that Member States should retain the right to grant their consumers even higher standards of protection. However, in some areas full harmonisation may be needed, eg on the annual percentage rate of charge laid down in the directive.
Parliament opted for a limitation of the scope of this Directive, particularly exempting credit mediation, and called for further clarification as overlapping provisions need to be abolished, eg with the forthcoming Basel II accord.
The committee wishes to exclude various types of loan from the directive. These include credit agreements of less than € 500 or more than € 50.000, further credit agreements secured either by a mortgage on immovable property.
Another key point for MEPs is the need for standardised information about credit offers and credit agreements. The committee says this information should always include the annual percentage rate of charge, the agreed duration of the credit, the number and amount of monthly payments and the total cost of the credit.
MEPs also keen to ensure that both creditor and consumer provide information prior to the signing of an agreement, so that the creditor can assess the consumer's creditworthiness on the basis of the information provided.
The committee wants to allow consumers less time to withdraw from a credit agreement without giving any reason, by shortening the period from fourteen to seven calendar days.
The consolidated report will be available soon.