EU industry ministers have agreed on the EU consumer credit directive, intended to enhance competition and transparency for customers.
The new rules were tabled by the European commission in order to allow people to shop around the EU for the most preferential credit rates, and improve transparency by setting up common rules on issues like pre-contractual information and right of withdrawal.
German justice minister Brigitte Zypries welcomed the agreement, saying it “delivers clear practical advantages to Europe’s consumers”.
“This directive makes it easier for the growing proportion of mobile citizens and users of internet banking services to identify opportunities beyond the border of their national credit markets,” she said.
“Now banks face the challenge of gaining the necessary trust of consumers in other member states,” she added.
The new rules - which have been criticised by the financial sector - must now be approved by parliament, after which it will have to be transposed into national law within two years.
But the directive has come under fire from British conservative MEPs, who say the commission failed to carry out a full impact assessment of the directive.
Have your say...
Please enter your comments below.