# CE2004078EN.01067101.xml

| 27.3.2004 | EN | Official Journal of the European Union | CE 78/671 |
| --- | --- | --- | --- |

27.3.2004

EN

Official Journal of the European Union

CE 78/671

---

(2004/C 78 E/0714)

WRITTEN QUESTION E-3903/03

by Roberta Angelilli (UEN) to the Commission

(17 December 2003)

Subject:   Disparities in the treatment of debts by banks in connection with Democratici di Sinistra's unpaid debts

Subject:

In 1996 the Italian party Democratici di Sinistra (DS) entrusted Beta Immobiliare, a company set up in 1995 with the remit of purchasing, building, managing, transferring and selling property and property rights of all kinds, with the job of putting its accounts in order. With a view to achieving this, the DS party's local federations entrusted Beta Immobiliare with a considerable number of properties, the proceeds from the sale of which would be used to bring the party's accounts out of the red. However, this recovery plan failed. The creditor banks include Monte dei Paschi di Siena, which is owed 27 instalments amounting to several million euro on the four loans it has made to the party. Despite the huge sum involved, the decision-makers at the bank do not appear to wish to demand that the outstanding amounts be paid, and the Bank of Italy's supervisory authorities have failed to take any action on the matter. What is more, the secretary-general of the DS, Mr Fassino, recently proposed that the party be given a 50 % rebate on the debt, with a view to tackling this situation. Although the proposal has not yet been formally accepted, the banks are clearly entertaining the possibility of doing so.

Under these circumstances can the Commission answer the following questions:

| 1. | The normal practice is for banks to instigate recovery proceedings against a client who is in arrears, right from the second unpaid instalment. In this instance, however, no such action has been taken. Would the Commission not agree that this is in breach of the principle of equal treatment for consumers, in that those in a position of power receive preferential treatment while ordinary members of the public are obliged to pay sometimes very high rates of interest, together with charges on every bank transaction and penalties should they ever fall into arrears? |
| --- | --- |

1.

The normal practice is for banks to instigate recovery proceedings against a client who is in arrears, right from the second unpaid instalment. In this instance, however, no such action has been taken. Would the Commission not agree that this is in breach of the principle of equal treatment for consumers, in that those in a position of power receive preferential treatment while ordinary members of the public are obliged to pay sometimes very high rates of interest, together with charges on every bank transaction and penalties should they ever fall into arrears?

| 2. | Would the Commission clarify the European banking laws applying in this instance, with particular reference to provisions on the protection of consumers in their dealings with banks? |
| --- | --- |

2.

Would the Commission clarify the European banking laws applying in this instance, with particular reference to provisions on the protection of consumers in their dealings with banks?

| 3. | Can this situation be viewed as a case of ‘overindebtedness’, on which the Economic and Social Committee has on several occasions given its opinion and on which it has often asked the Commission to take action? |
| --- | --- |

3.

Can this situation be viewed as a case of ‘overindebtedness’, on which the Economic and Social Committee has on several occasions given its opinion and on which it has often asked the Commission to take action?

Answer given by Mr Byrne on behalf of the Commission

(5 February 2004)

(5 February 2004)

The matters raised by the Honourable Member fall outside the scope of Community competence.

As the parties involved are not natural persons acting outside their business or professional activities, the Community provisions governing consumer protection to which the Honourable Member refers are not applicable.

---