By Anna McLauchlin - 15th April 2004
MEPs are set to back a 'light touch' rules on consumer rights when borrowing money which waters down many elements of the European Commission's original proposal.
The latest draft, to be put to the vote on Tuesday, scraps the commission's plans to enforce 'maximum harmonisation' of EU lending laws and consumer protection rules.
MEP Joachim Wuermeling, in charge of the parliament's text, considered the move too costly and difficult to implement.
MEPs have instead chosen 'common minimum standards' in credit laws to be applied across the EU.
Commission ambitions to cover doorstep-selling, credit 'intermediaries' like brokers, mortgages and even overdrafts have also been thwarted.
As has the original idea to apply the new law retroactively to all existing credit.
Wuermeling's office said the original proposal would have seen bank managers across Europe sending out millions of new overdraft contracts which would cost billions of euros.
The new draft has also thrown out aims to apply 'mutual recognition' on credit as MEPs think lending practices are too different across Europe to let people think borrowing money abroad is the same as doing so at home.
New aspects of the proposal include an 'infobox' giving creditors 'at a glance' information on APR interest rates.
"We are fairly confident it will go through" Wuermeling's office said of the vote on Thursday.
Both MEPs and EU governments must back the proposal if it is to become law.
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