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Do you think the directive adopted by Parliament earlier this month still serves its original purpose well - giving European consumers greater choice, better prices and clearer information?
The previous directive from 1987 was only based on minimum standards. Each member state has a lot of leeway - so we have today, 27 directions.
With the present directive, the elements of the credit law shall be regulated consistently. The member states have no choice anymore, they cannot deviate from the obligations. Because of the future consistent calculation of the annual percentage rate and the information obligations, the consumer will be able to compare credit offers in a better way.
Also, the consumer gains from the same content of the credit contract and the same right of withdrawal - fourteen days in Europe. Since 1987, the consumer has had the right to repay a credit early in every member state. With the new directive, the question of reimbursement is now also harmonised. The consumer will know much better what the conditions are when he pays back a credit cross-border.
What lessons can we learn for mortgage credit?
The directive we have on the table now is very complicated - I think too complicated. It is generally difficult to bring together financial cultures and legal traditions.
This has a further impact for mortgage credits. There is a big difference whether you decide to take up a mortgage or whether you take up a smaller consumer credit. In the case of a consumer credit, the consumer should have more individual responsibility whereas in the case of a mortgage-credit with a long-term obligation, the consumer needs more protection.
Therefore I hoped for less binding rules in the field of consumer credit.
What was the response among parliamentarians to your report?
Most of my colleagues have appreciated the work I have done - despite the different political views. The result of the vote shows that in all major points, the EP followed my primarily line even though I didn't succeed in all the points that are important to me.
What are the main changes introduced by the Parliament in second reading?
We have reached simplification, some face-lifts and very important - some abbreviations with regard to overdrafts. Concerning the right of early payment, the EP followed my suggestion to leave more freedom with the member states. On the question of compensation, the national legislator can force a higher compensation than 1 % in extraordinary cases.
Despite the informal agreement found, do you expect to encounter any resistance from the Council? Or from other actors involved?
Although there was no agreement reached in the informal trialogue before the vote in Parliament, we received the information that the Council will accept the decision of the EP.
After the official adoption in the Council, the directive will be published in the journal of the EU and come into force.
