(2004/C 84 E/0231)

WRITTEN QUESTION E-0269/04

by Brice Hortefeux (PPE-DE) to the Commission

(5 February 2004)

Subject:   Consumer credit

In its various forms (personal loans, assigned credit, permanent credit, credit cards, etc.), consumer credit accounted in 2003 for more than EUR 510 billion, or 13 % of household consumption in the euro zone.

Since 1987, when it was established, the sector has expanded spectacularly; new types of services have given rise to increasingly diverse national laws, so that the legal framework needs to be brought up to date. In this context, the Commission's efforts to harmonise Member States' legal provisions are warmly to be welcomed.

However, although this type of credit can help to encourage consumption, it may also, if poorly managed, increase the indebtedness of many households which have fallen victim to the crisis and can thus even play a proactive role, contributing to the economic decline by holding back consumption at the wrong moment.

Inadequate protection of consumers in the Commission proposal caused the report to be rejected in plenary and to be referred back to committee because Parliament felt that it did not meet current needs.

In the face of such a barrage of criticism, is the Commission prepared to alter its position?

Answer given by Mr Byrne on behalf of the Commission

(11 March 2004)

The Commission is pleased with the Honourable Member's comment that the harmonisation measures taken in the area of consumer credit are to be welcomed. These measures are part of the Commission's policy in the area of consumer protection and are in line with its strategy for 2002-2006 (1).

With regard to the first point made by the Honourable Member, indebtedness is indeed a concern within the EU, and the Commission shares this concern. Although the proposal for a Directive is not primarily designed to tackle indebtedness, it contains provisions which may help to do so. It is intended to set high standards for consumer information before, during and after the conclusion of credit agreements, which will help the consumer to avoid indebtedness, and to lay down rules on awarding loans (for example, the obligation for the lender to make sure that the customer is solvent).

As for the Honourable Member's comment on the procedure in Parliament, the Commission is pleased that Parliament has confirmed in plenary that the Committee on Legal Affairs and the Internal Market should proceed with a review of the proposal and deliver an opinion on it.

The Commission is pleased with the in-depth discussions under way in Parliament and is awaiting the debate and the vote in plenary, currently scheduled for the second part-session in March 2004. The Commission intends to submit an amended proposal as soon as Parliament has adopted its amendments at first reading.

(1)  COM(2002) 208 final — Communication from the Commission to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions — Consumer Policy Strategy 2002-2006.