A new Directive on consumer credit…. towards maximum harmonisation?

Hi – long silence on my part as well. I am also editing a book but will try to post more regularly…

An exciting start of the week in any case for those interested in harmonisation of European private law. Yesterday, European Commissioner for Consumer Affairs Meglena Kuneva welcomed the adoption by the Council of Ministers of the Consumer Credit Directive, calling it ‘a big step forward’. A specific feature of this new Directive in comparison to Directive 87/102 is that it is aimed at maximum harmonisation. To this end, the Directive ensures that consumers receive standard, comparable information on:

• pre-contractual information;
• annual percentage rate of charge;
• contractual information, of which the Directive contains a detailed list of requirements.

The Directive also contains standard rules on the right of withdrawal and on early repayment.

Hmm, interesting stuff. As to whether the Directive will achieve maximum harmonisation, another good read is the report from the European Union sub-committee of the House of Lords on consumer credit. It points out the limited scope of the Directive, which also means that the degree of harmonisation achieved will be less than full….

More soon.

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