By Anna McLauchlin - 20th April 2004
Minimum standards for people borrowing money across the EU have been backed by a overwhelming majority in the European Parliament.
Save for a few areas such as interest rates which would be fixed to EU standards, MEPs on Tuesday voted down the European Commission's proposal for 'maximum harmonisation'.
MEPs instead agreed that national governments should be able to introduce stricter standards if they wish.
Commission plans to include regulation of mortgages, doorstep-selling and overdrafts were thrown out.
MEPs also decided consumers were more autonomous than Brussels supposed and voted to impose less stringent requirements on credit lenders.
And they reduced the time consumers have to annul a contract without penalty from 14 to seven calendar days.
EU capitals will now consider the changes made by parliament as both sides must agree in order for the proposal to become law.
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