WRITTEN QUESTION P-2032/03

by Bart Staes (Verts/ALE) to the Commission

(13 June 2003)

Subject: Central credit registry European harmonisation

On 1 June 2003, a Central credit registry was opened in Belgium. The initiative came from the Belgian Government and was put into operation by the Belgian National Bank (NBB). The registry aims to record data relating to all consumer loans and all mortgages granted to natural persons for private purposes. Before a loan company grants a loan, it will be able to ascertain whether the limit of the applicant's ability to repay the debt in reasonable circumstances has already been reached at the time when the application is submitted. Should that indeed be the case, the company may decide not to grant any additional loan. It should be clear that, by acting in this way, the Belgian Government is seeking to prevent private citizens from running up excessive debts. Any loan company which fails to consult this database before granting a loan runs the risk of losing interest revenue, should the borrower default on his repayments. The measure is evidence of sound management: in Belgium, 5 % of all adults are in arrears with their repayments. In this connection, the number of loan agreements is increasing faster than the number of registered persons: that demonstrates the need for a central credit registry of this nature.

When the credit registry was presented to the public, it was correctly noted that the system could not become fully operational without cross-border cooperation. The longer it goes on, the more this struggle to prevent excessive debt needs to be pursued at European level. In connection with the single European market, it would be appropriate for a European network of closely cooperating national registries to be set up. Furthermore, a Community package of a small number of specific rules and directives is essential in order to guarantee the purpose and integrity of the processing and exchange of data.

Does the Commission share the view that such a central credit registry, managed by an independent and neutral body such as the NBB, constitutes a powerful weapon in the fight to prevent excessive debt and the poverty which frequently results therefrom?

In this connection, does it acknowledge the need for Europe-wide cooperation?

What measures will it take to launch an initiative of this nature at European level as well in order to protect consumers and less importantly loan companies as rapidly and as efficiently as possible?

Answer given by Mr Byrne on behalf of the Commission

(7 July 2003)

The Commission believes that a central positive credit registry makes a positive contribution to the prevention of over-indebtedness, provided all necessary measures are taken with regard to privacy and data protection.

The Commission therefore acknowledges the need for European-wide co-operation. The Commission has already proposed rules in the context of the new proposal for a Directive on credit for consumers(1), although not modelled on any one particular system, but rather building on existing systems. The proposed rules, which are still under discussion, may be found in Article 8 of the proposal.

(1) Proposal for a Directive of the Parliament and of the Council on the harmonisation of laws, regulations and administrative provisions of the Member States concerning credit for consumers, OJ C 331 E, 31.12.2002.