Proposed EU consumer-credit harmonisation directive : interim report, report with evidence, 13th report of session 2005-06

The European Commission proposes to establish, through a directive, the legal conditions to create a single EU-wide market in consumer credit.

This interim report details the emerging issues: (1) whether it is currently feasible or desirable to create such a single cross-border market; (2) what would be the consequences of imposing maximum (or total) harmonization which might forbid member states from introducing legal provision other than those in the directive; (3) whether it would be better to introduce appropriate EU-wide minimum standards for consumer credit transactions, to give greater certainty for credit suppliers and improved protection for EU consumers.

The Committee doubts whether a single market can easily be created, and seriously questions the Commission's proposal on maximum harmonization.

The alternative approach, setting minimum standards, is supported, and the Committee lists elements which might be incorporated into new EU-wide legislation.