"The directive we have on the table now is very complicated - I think too complicated," said Lechner, referring to a compromise agreement which received backing from the European Parliament on 16 January (EurActiv 17/01/08).
According to the German member of parliament, there was no point going for hard-hitting legislation on the consumer credit market, which covers personal loans of up to 75,000 euros. In his view, the need for tough rules was less vital here than in the much larger mortgage credit market, for instance.
"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."
"I hoped for less binding rules in the field of consumer credit."
Nevertheless, Lechner says he can still live with the agreement, which is now due to be officially adopted by member states in a forthcoming meeting of the EU Council of ministers. "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," he said.
"We have reached simplification, some face-lifts and very importantly - some abbreviations with regard to overdrafts," Lechner notes with satisfaction. "Concerning the right of early payment, the EP followed my suggestion to leave more freedom with the member states."
More importantly, he still believes there is a need for tighter regulation at EU level. "The previous directive from 1987 was only based on minimum standards. Each member state had a lot of leeway - so we have today, 27 directions. With the present directive, the elements of the credit law shall be regulated consistently."
And in the field of financial services, Lechner suggests reaching any kind of agreement was already something. The consumer credit directive, for instance, took six years of negotiation before it was finally approved in Parliament this month.
"It is generally difficult to bring together financial cultures and legal traditions," Lechner observes.
