WRITTEN QUESTION No. 2616/97 by Richard HOWITT to the Commission. Banks and building societies - hidden payments on mortgage arrears
Date: 1997-07-18
Institutions: European Parliament, HOWITT
Subjects: appeal, building industry, competence of the Member States, fraud, law of banking, mortgage, real estate credit

C 76/130

EN

Official Journal of the European Communities

11. 3. 98

(98/C 76/246)

WRITTEN QUESTION P-2616/97

by Richard Howitt (PSE) to the Commission

(18 July 1997)

Subject: Banks and building societies › hidden payments on mortgage arrears

In response to a complaint from my constituent, Mr Hill of Leigh-on-Sea, who is seeking reimbursement from
the Cheltenham and Gloucester Building Society of unauthorised legal charges added to his mortgage, can the
Commission:

1.  Advise of any other such complaints of hidden charges and fines resulting in increased arrears particularly

where they have resulted in repossessions;

2.  Confirm if this practice by financial institutions is in breach of any EU directives;

3. 

Investigate all cases relating to this issue raising it in the appropriate forums.

Answer given by Mr Monti on behalf of the Commission

(9 September 1997)

The  Commission  has  not  received  any  other  complaints  on  problems  similar  to  the  one  raised  by  the

1.
Honourable Member.

2.
The  Honourable  Member’s  question  does  not  make  it  possible  to  gain  a  clear  idea  of  the  practice  in
question. In any case, the problem of charges and penalties connected with mortgage contracts is not covered by
a Community harmonisation directive and is therefore subject to national law concerning contracts.

Consumer  credit  is  another  matter.  This  is  covered  by  Directive  87/102/EEC  as  amended  by  Directive
90/88/EEC (1), which lays down the principle that the annual percentage rate of charge for credit must include all
costs which the consumer has to pay, excluding those listed in Article 1a(2). Community law on consumer credit
was designed to ensure that consumers do not incur costs without their knowledge. The Commission has begun
to look into the possibility of achieving the same level of transparency for mortgage credit.

As the question concerns (cid:145)unauthorised legal charges(cid:146), the Commission has no doubt that the complainant

3.
will take the necessary administrative and legal steps open to him under national law.

(1)  OJ L 61, 10.3.1990.

(98/C 76/247)

WRITTEN QUESTION P-2617/97

by Glyn Ford (PSE) to the Commission

(18 July 1997)

Subject: Commission anti-dumping investigations into unbleached cotton (greycloth) imports

In light of the uncertainty created by repeated anti-dumping investigations into greycloth imports, which has
undoubtedly contributed to the loss of jobs in the Greater Manchester area, will the Commission indicate why it
is again investigating essentially the same complaints as have already been rejected by the Council of Ministers(cid:146)
anti-dumping committee?

Answer given by Sir Leon Brittan on behalf of the Commission

(4 September 1997)

Although the Commission realises the burden of an investigation for the interested parties, it is bound by Council
Regulation (EC) No 384/96 on protection against dumped imports from countries not members of the European
Communities (1) to open an investigation when there is sufficient evidence to justify initiating a proceeding. Due
to  the  objective  criteria  set  out  in  Council  Regulation  (EC)  No  384/96  for  the  initiation  of  anti-dumping