WRITTEN QUESTION E-1399/03

by Mihail Papayannakis (GUE/NGL) to the Commission

(16 April 2003)

Subject: Consumer confidence Directive 93/13/EC

The subject of unfair terms in contracts is of particular concern to Member States and national authorities. As part of the CLUB project, and in the report on the application of Council Directive 93/13/EEC(1) on unfair terms in consumer contracts, the Commission has found evidence of unfair terms which leave consumers without protection.

Will the Commission step up controls to prevent or address the problem of unfair terms in contracts? What measures will it take regarding unfair provisions (taxes) in loan contracts between credit institutions, particularly banks, and businessmen which, as a result of provisions on limited liability,

excessive guarantees and lack of information, have generated great concern in Europe (imbalances in European markets) and are directly undermining the balance in relations between banks and consumers?

(1) OJ L 95, 21.4.1993, p. 29.

Answer given by Mr Byrne on behalf of the Commission

(18 June 2003)

As the Honourable Member pointed out, the Commission already assists Member States in the application of Council Directive 93/13/EC of 5 April 1993 on unfair terms in consumer contracts, by continuously updating the CLAB-database that provides to date for about 9,000 entries of examples of unfair terms. A conference was held in July 1999 on experience with the Directive, which involved a workshop on the application of the Unfair Terms Directive to financial services and new technologies. Its findings have been published in a document The Unfair Terms Directive Five Years On. The Commission has also published, on 27 April 2000, a Report on the implementation of Directive 93/13/EC on unfair terms on consumer contracts(1). The Commission has therefore taken its supervisory role very seriously and provides assistance to legal practitioners as far as its powers reach. However, the day-to-day enforcement of the Directive is the responsibility of the Member States.

Nevertheless, in its Consumer Policy Strategy, the Commission committed itself to a review of the consumer acquis after the adoption of a Framework Directive on Unfair Commercial Practices that is currently being prepared. Moreover, the work to be undertaken following the adoption of an Action Plan on a More Coherent European Contract Law of 12 February 2003(2) will have an impact on a reform of the Unfair Terms Directive as a part of the contract law acquis.

As far as consumer credit agreements are concerned, Council Directive 87/102/EEC of 22 December 1986 for the approximation of the laws, regulations and administrative provisions of Member States concerning consumer credit(3), as last amended by Directive 98/7/EC of the Parliament and of the Council of 16 February 1998(4), already provides for a certain level of protection. A thoroughly revised Directive has been proposed by the Commission in September 2002(5) and is currently being debated.

In its proposal, the Commission puts forward a new provision regarding unfair contract terms in the field of consumer credit contracts. This article aims at establishing an ad hoc regime for some contractual terms to be considered as unfair, without prejudice to the application of Directive 93/13/EC.

(1) COM(2000) 248 final.

(2) OJ C 63, 15.3.2003.

(3) OJ L 42, 12.2.1987.

(4) OJ L 101, 1.4.1998.

(5) OJ C 331 E, 31.12.2002.