Council Resolution of 26 November 2001 on consumer credit and indebtedness
Date: 2001-11-26
Institutions: Council of the European Union
Subjects: Council of the European Union, consumer credit, indebtedness, resolution (EU)

20.12.2001

EN

Official Journal of the European Communities

C 364/1

I

(Information)

COUNCIL

COUNCIL RESOLUTION

of 26 November 2001

on consumer credit and indebtedness

(2001/C 364/01)

THE COUNCIL OF THE EUROPEAN UNION

1. NOTES that the proportion of consumption financed by

credit in all its forms is constantly increasing;

2. NOTES that this growth in credit, which far exceeds GDP,

contributes to the growth of the latter;

3. CONFIRMS its attachment

to the implementation of an
internal
financial services market and harmonisation of
legislation in this field, with a high level of consumer
protection;

4. NOTES

that both such harmonisation of

legislation
concerning cross-border
financial operations and
retail
the introduction of a single currency and the development
of new technologies also have the aim and consequence of
developing cross-border credit operations;

5. NOTES that while credit is a driving force for economic
growth and the welfare of consumers, it also constitutes
a risk for credit-providers and a threat of additional cost
and insolvency for a growing number of consumers;

6. NOTES that over-indebtedness affects a significant and
the

growing number of European consumers
Member States;

in all

7. NOTES that such over-indebtedness is in the majority of
the

regarding
cases
occurrence and predictability of variations in income;

to increasing

uncertainty

due

8. NOTES that, while over-indebtedness does not consist solely
of debts linked to credit, it is in most cases linked to the
existence of credit, and consumer credit in particular;

9. NOTES

that

and over-
information on indebtedness
indebtedness, despite the work done by the Commission,
nevertheless remains inadequate, in particular owing to the
lack of a systematic study of over-indebtedness, resulting
from the incomparability of data, where such data are
available in the Member States, and the lack of a
harmonised definition of over-indebtedness;

10. NOTES that ten European Union Member States currently
collective
have
settlement of debts governing the
legal and
economic treatment of over-indebted consumers, whereas

the
social,

concerning

legislation

specific

ordinary debt collection procedures continue to apply in
the other Member States;

social,

11. NOTES that divergences as regards both the preventive and
the
treatment of over-
and economic
indebtedness in the Member States could therefore give
rise to considerable disparities both between European
consumers and between credit providers;

legal

12. NOTES that,

taking into account both the European
Community’s desire to develop cross-border activities
relating to financial services and the growing scale of the
and over-indebtedness,
phenomenon of
consideration could be given at Community level
to
complementing the measures to promote the development
of cross-border credit with measures to prevent over-
indebtedness throughout the one credit cycle;

indebtedness

the revision of

13. TAKES NOTE of the Commission’s intention, following the
in the
studies and hearings carried out, of proposing,
context of
the Directive on consumer
credit, a certain harmonisation of preventive measures
the
concerning the rules on information for debtors,
responsibility of credit providers, compensation and costs
if contracts are not fulfilled and the role of credit inter-
mediaries or agencies;

14. CONSIDERS that any European cooperation on the study
and prevention of over-indebtedness needs to be based
on regular and precise information of both a statistical
and an economic,
legal and sociological nature, which
could draw, in particular, on the statistics collected in the
context of the work carried out with regard to indicators
concerning poverty and social
exclusion and those
concerning income and living conditions;

15. INVITES the Member States and the Commission to
consider as soon as possible ways and means of moni-
toring the development of consumer indebtedness and
over-indebtedness within the internal market through an
exchange of information at European level, particularly as
regards the level of indebtedness and best practice;

16. INVITES the Commission to continue working towards

these objectives.