The Commission welcomed the Member States decision to back new rules on consumer loans. Consumer loans represent on average almost 18% of the gross income of retail banking in the EU. The cost of credit varies greatly across the EU from the lowest rate of 6% in Finland to above 12% in Portugal.
'At the moment trying to compare different credit offers across the European market is like trying to compare apples and pears”, Commissioner Meglena Kuneva said. “Standard, comparable information for all EU credit loans will make the market more transparent for business and consumers.'
The Directive also sets out that consumers will be able to withdraw from the credit without having to give any reason, and without any charge.
The Consumer Credit Directive confirms the right to repay early at any time. It sets EU-wide standards on the compensation creditors are entitled to claim in case of an early repayment, in order to lower market entry barriers.
The Directive must now be approved by the European Parliament at second reading.
Press release
© European Commission
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