Communication from the Commission to the European Parliament in accordance with the second paragraph of Article 251(2) of the EC Treaty on the common position adopted by the Council with a view to the adoption of a Directive of the European Parliament and of the Council on credit agreements for consumers
Date: 2007-09-21
Institutions: European Commission
Subjects: approximation of laws, consumer credit, consumer information, consumer protection, contract, single market

EN 

EN 

   EN 

 
 
COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 21.9.2007 
COM(2007) 546 final 

2002/0222 (COD) 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT 

in accordance with the second paragraph of Article 251(2) of the EC Treaty 

on the 

common position adopted by the Council with a view to the adoption of a Directive of 
the European Parliament and of the Council on credit agreements for consumers  

EN 

   EN 

 
 
 
  
 
 
2002/0222 (COD) 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT 

in accordance with the second paragraph of Article 251(2) of the EC Treaty 

on the 

common position adopted by the Council with a view to the adoption of a Directive of 
the European Parliament and of the Council on credit agreements for consumers  

1. 

BACKGROUND 

Date  of  forwarding  of  the  proposal  to  the  EP  and  Council 
(document COM(2002) 443 final – 2002/0222 COD): 

12 September 2002

Date of the opinion of the Economic and Social Committee: 

17 July 2003

Date of the opinion of the European Parliament (First Reading) 

20 April 2004

Date of forwarding of the first amended proposal 

Date of forwarding of the second amended proposal 

29 October 2004

7 October 2005

Date of political agreement in the Competitiveness Council 

21 May 2007

Date of adoption of the Common Position 

20 September 2007

2. 

AIM OF THE COMMISSION’S PROPOSAL 

The  proposal  for  a  new  Directive  on  consumer  credit  has  a  double  objective: 
ensuring a high level of consumer protection and launching a process for establishing 
the conditions for a genuine internal market in consumer credit. 

The  Directive  of  1987  was  based  on  minimum  harmonisation.  Almost  all  Member 
States have gone beyond these standards to a different extent, which has hindered the 
creation of a single market. The full harmonisation of the five essential modules of 
the Directive (pre-contractual and contractual information, annual percentage rate of 
charge (APR), right of withdrawal and right of early repayment) aims to contribute to 
the creation of a single market in consumer credit, because creditors will not have to 
adapt their products to different national legislations in the Member States.  

The  current  Directive  on  consumer  credit  (87/102/EC)  was  adopted  in  1987  and 
provides  only  for  basic  consumer  protection  measures.  Recent  market  evolutions 
called for adaptation of these rules. 

EN 

2 

   EN 

 
 
 
3. 

COMMENTS ON THE COMMON POSITION  

3.1  General remarks 

For  the  Commission,  the  key  elements  were  the  harmonisation  of:  pre-
contractual and contractual information requirements, calculation of the APR, 
right of early repayment and right of withdrawal. 

The Commission supports the introduction of a standardised form for fulfilling 
the creditors' pre-contractual information duties.  

3.2  Amendments made by the European Parliament at first reading  

Amendments incorporated in the Common Position 

Regarding the scope of the Directive the EP proposed a number of exemptions 
which were either accepted as such or in an amended version.  

The exemption of surety agreements from the scope of the Directive was taken 
on  board  by  the  modified  proposal  and  included  in  the  Common  Position 
[Article 2(1)]. 

The  suggestion  to  exempt  not  only  mortgage  credits,  but  also  credits  secured 
by  another  comparable  surety  is  also  part  of  the  Common  Position  [Article  2 
(2)  (a)],  and  the  Council  added  (in  the  area  of  credits)  new  exemptions 
regarding financing the purchase of immovable property (see 3.3 below).  

On the exemptions, the Parliament proposed to exempt credit agreements up to 
500 € and over 100,000 €. The Commission's m odified proposal foresaw a light 
regime  for  credits  up  to  300  €.  The  C ouncil  agreed  on  a  full  exemption  for 
credits  below  200  €  and,  in  agreement  w ith  the  Parliament  opinion,  to  fix  an 
upper limit of €100,000 [Article 2 (2) (c)].  This solution is acceptable because, 
for  small  credits,  consumers  throughout  the  EU  may  be  protected  by  their 
Member State if it sees the need for protection rules. In addition, these small 
credits are rarely taken out cross-border. Credits above an amount of 100,000 € 
are  not  typical  consumer  credits  and  therefore  do  not  require  the  protection 
mechanisms of the Directive.  

In  the  area  of  overdrafts  and  overrunning,  the  Commission  and  the  Council 
followed the Parliament idea of light regimes (i.e. to shorten the list of duties) 
in  order  to  keep  these  products  flexible  [Article  2(3)  and  (4)].  However,  the 
negotiations in the Council led in the end to a longer list than that proposed by 
the Parliament and the Commission. 

The  Council,  based  on  the  Commission  modified  proposal,  introduced  light 
regimes  for  other  specific  credit  agreements  (credits  granted  by  credit  unions 
[Article 2 (5)] and arrangements between creditor and consumer in respect of 
deferred payment where the consumer is already in default [Article 2 (6)]. The 
Parliament amendments had suggested a full exemption for these cases. 

In the area of definitions, the initial proposal of the Commission gave a wide 
definition of the total cost of credit (all costs which the consumer has to pay for 

EN 

3 

   EN 

 
 
 
 
 
 
 
 
 
 
 
the credit). The Parliament proposed a narrower definition only including costs 
known  to  the  creditor  in  connection  with  the  management  of  the  credit 
agreement,  and  excluding  costs  payable  to  third  persons  (notaries,  tax 
authorities). The Commission followed the amendment by including the costs 
in connection with the credit agreement which are known to the creditor and by 
excluding costs payable to third persons. However, it proposed to include costs 
relating  to  ancillary  services  relating  to  the  credit  agreement  (in  particular 
insurance  premia)  if  the  service  is  compulsory  for  taking  out  credit  or  for 
obtaining the advertised rate, and the contract is concluded with the creditor or 
under certain circumstances with a third party. The Common Position is in line 
with  the  Commission  modified  proposal  except  for  taxes,  which  were  not 
excluded  [Article  3  (g)].  Although  the  exclusion  of  taxes  would  have  been 
preferable, the Commission can accept this solution as a compromise. 

On linked credit agreements the Council took a definition from the Parliament 
which was slightly modified [Article 3 (n)].  

Concerning the information requirements in advertising, the Common Position 
took into consideration the Commission modified proposal which suggested a 
list of important information (APR, duration of credit, number and amount of 
monthly payments and total cost of credit) to be given unless the advertisement 
does  not  contain  a  specific  credit  offer [Article  4].  However,  in  the  Common 
Position  the  mandatory  information  list  is  dependent  on  whether  the 
advertisement  indicates  an  interest  rate  or  another  figure.  This  takes  into 
account that consumers need more information (such as the APR) whenever a 
figure  is  mentioned  in  the  advertisement  in  order  to  prevent  consumers  from 
being  misled  by  a  single  figure.  The  Council  found  that  this  provision  would 
not need to be applied to cases in Member States where the national legislation 
requires  an  indication  of  the  APR  for  advertising  which  does  not  indicate  a 
figure [Article 4 (1, second sentence)]. The Commission agrees (this exemption 
relates  only  to  cases  which  are  not  covered  by  the  Directive  and  assures  the 
Member States concerned that they can maintain their legislation).  

The  list  of  information  to  be  given  was  modified  and  the  Council  introduced 
the possibility that Member States would not require the indication of the APR 
in the case of overdrafts [Article 4 (2) (c)]. This leeway for Member States is 
acceptable as overdrafts have at present almost no cross-border impact.  

On  pre-contractual  information  requirements,  after  having  taken  over  EP 
amendments  entirely  or  partly,  the  Commission,  in  its  modified  proposal, 
suggested requirements which again were entirely or partly taken on board by 
the Council. The Council introduced new elements (such as the standard pre-
contractual information form, see 3.3 below). 

When  determining  the  general  obligations  of  the  creditor  prior  to  the 
conclusion  of  the  credit  agreement,  the  Council  followed  the  Commission 
modified  proposal  suggestion  to  require  the  assessment  of  consumers' 
creditworthiness.  The  creditor  will  have  to  assess  the  creditworthiness  of  the 
consumer  on  the  basis  of  sufficient  information,  where  appropriate  obtained 
from  the  consumer  and,  where  necessary,  on  the  basis  of  a  consultation  of  a 
database  [Article  8  (1)].  However,  the  Council  abandoned  the  principle  of 

EN 

4 

   EN 

 
 
 
 
 
 
responsible lending. This is acceptable as the Council accepted the obligation 
for  Member  States  to  ensure  that  creditors  provide  adequate  explanations  in 
order to put the consumer in a position to assess whether the proposed credit is 
adapted to his needs and his financial situation [Article 5 (6)].  

The  Parliament  and  the  Council  added  other  pieces  of  information  to  the 
initially shorter list of mandatory pre-contractual information. From among the 
additions of the Parliament (additional costs provided the creditor knows them; 
costs of an account set up specifically for the purpose of the loan in question; 
charges for the use of means of payment; costs for payment transactions; total 
cost of credit to the consumer; procedures for the right of withdrawal; method 
of  repayment;  in  case  of  overdue  payments  the  interest  and  charges,  the 
arrangements for their adjustment and the charges for defaulting) the Council 
took into account the charges for maintaining one or several accounts [Article 5 
(1)  (i)],  the  charges  for  using  a  means  of  payment  and  any  other  charges 
[Article 5 (1) (i)] and the information for overdue payments [Article 5 (1) (l)]. 
Based on the Commission modified proposal, the Council added the indication 
of  notary  costs  to  the  list  [Article  5  (1)  (j)],  the  obligation  to  take  out  an 
ancillary  service  relating  to  the  credit  agreement  [Article  5  (1)  (k)],  the 
existence  or  absence  of  a  right  of  withdrawal  [Article  5  (1)  (o)],  the  right  of 
early repayment [Article 5 (1) (p)], the right to be informed of the result of a 
database consultation [Article 5 (1) (q)] and payments made by the consumer 
which  do  not  give  rise  to  an  immediate  amortisation  of  the  total  amount  of 
credit [Article 5 (5)]. In addition, the Council added, on its own initiative, the 
information on the type of credit [Article 5 (1)(a)], the identity and address of 
the creditor [Article 5 (1)(b)], a warning regarding the consequences of missing 
payments [Article 5 (1)(m)], the right to be supplied, upon request, with a copy 
of the draft credit agreement [Article 5 (1)(r)] and, if applicable, the period of 
time  during  which  the  creditor  is  bound  by  the  pre-contractual  information 
[Article 5 (1)(s)].  

While  the  Commission  argued  that  the  list  of  pre-contractual  information 
requirements should not be extended beyond what was in its modified proposal 
in order to avoid information overload, it agreed to the list of information as it 
stands now, taking into account that some of the added information is relevant 
only  in  specific  cases  and  will,  in  these  circumstances  only,  be  listed  in  the 
mandatory form (see 3.3).  

Regarding the pre-contractual information in specific cases such as overdrafts, 
the light regime proposed by the Parliament was incorporated in the Common 
Position,  but  the  list  of  information  was extended  [Article  6  (1),  (2),  (3)].  As 
these  specific  cases  do  not  have  a  significant  cross-border  impact,  the 
Commission did not oppose this list. This position applies as well to the leeway 
given to the Member States in relation to the indication of the APR in cases of 
overdrafts [Article 6 (2)].  

In  the  area  of  database  access,  the  Parliament  suggested  abandoning  the 
obligation for Member States to ensure the operation of a central database. The 
Commission  and  the  Council  agreed  on  this  amendment  [Article  9].  The 
Parliament  proposed  to  maintain  the  requirement  that  creditors  from  other 
Member  States  must  have  access  to  existing  databases  under  the  same 

EN 

5 

   EN 

 
 
 
 
 
conditions as creditors of that Member State. The Commission added that the 
access  must  be  non-discriminatory  which  was  taken  on  board  by  the  Council 
[Article  9  (1)].  The  second  provision  which  the  Parliament  suggested  to 
maintain,  concerns  informing  the  consumer  of  the  result  of  any  database 
consultation  immediately  and  without  charge.  The  Commission's  modified 
proposal incorporated this amendment while limiting it to situations where the 
consumer  requests  the  information.  The  Council  further  narrowed  the 
obligation  to  inform  the  consumer  to  cases  where  the  rejection  of  a  credit 
application  is  based  on  the  database  consultation  [Article  9  (2)].  This  is 
acceptable as it covers the situation where it is most important for consumers to 
know about a database consultation. 

In  the  area  of  contractual  information,  the  Parliament  proposal  to  add  the 
information  on  the  procedure  to  be  followed  when  exercising  the  right  of 
termination of the credit agreement was taken on board [10 (2)(r)]. 

As regards the APR, the Parliament had proposed that insurance costs should 
be  reflected  in  the  APR  only  when  they  are  compulsory  to  obtain  the  credit. 
This was accepted by the Commission and the Council, however, for reasons of 
clarity, it was inserted in the definition of the total cost of credit (Article 3(g)). 
The Parliament had also proposed two assumptions to be used in cases where 
the  borrowing  rate  may  vary  in  the  course  of  the  contract  or  where  a 
promotional  rate  is  proposed  at  the  beginning  of  the  credit  only.  This 
suggestion was fully accepted by the Commission and the Council and is now 
reflected in Annex I (II) (i) and (j). 

Regarding  the  borrowing  rate,  the  Parliament  had  suggested  additional 
conditions  for  variable  borrowing  rates.  These  additions  were  taken  into 
account and are now reflected in the definition of "fixed borrowing rate" (i.e. 
not variable) in Article 3(k). 

As  regards  early  repayment,  the  Parliament  had  proposed  drafting  changes 
which  were  incorporated  in  the  Common  Position:  the  consumer  can  repay 
early at any time [Article 16]. 

On  the  assignment  of  rights,  the  Parliament  had  proposed  that  the  consumer 
should  be  informed  that  the  contract  has  been  assigned  to  a  third  party.  This 
was  incorporated  in  the  Common  Position,  however  ,  it  does  not  apply  when 
the  original  creditor,  in  agreement  with  the  assignee,  still  services  the  credit 
vis-à-vis the consumer [Article 17]. 

As regards linked transactions and the effect of the right of withdrawal on such 
transactions,  the  Commission  and  the  Council  confirmed  that  where  the 
consumer withdraws from the purchase contract by virtue of Community law, 
he  shall  no  longer  be  bound  by  the  linked  credit  agreement  (Article  15).  The 
Parliament  proposed  in  addition  that  Member  States  should  be  allowed  to 
maintain or introduce joint and several liability systems. This is reflected in the 
Common Position (Article 15(2)). 

The Council and the Commission followed the Parliament idea that each party 
can  terminate  an  open-ended  credit  agreement  by  simply  giving  notice.  In 

EN 

6 

   EN 

 
 
 
 
 
 
 
 
addition,  and  as  a  consumer  protection  measure,  the  Common  Position 
proposes  that  creditors  should  be  obliged  to  give  at  least  two  months'  notice 
(Article 13). 

On  overrunning,  the  part  of  the  amendment  proposed  by  the  Parliament 
concerning  consumer  information  (penalties  and  interest  on  arrears)  was 
accepted and incorporated in the Common Position (Article 18) 

As  regards  the  regulation  of  creditors  and  intermediaries,  the  Parliament 
amendment  proposing  that  they  should  be  regulated  or  supervised  by  an 
independent body or authority was reflected in the Common Position (Article 
20). However, intermediaries are no longer included in this Article. 

Amendments  not 
nevertheless found acceptable by the Commission 

incorporated 

in 

the  Common  Position,  which  were 

The  Parliament  proposed  that  the  creditor  could  fulfil  his  pre-contractual 
information  requirements  by  supplying  a  draft  credit  agreement  including  all 
necessary contractual information. The Council did not take this suggestion on 
board.  Taking  into  account  that  the  terms  of  a  credit  agreement  are  very 
difficult  to  understand  for  an  average  consumer  and  that  the  mandatory  form 
(see  3.3)  is  a  good  solution  for  providing  the  consumer  with  understandable 
pre-contractual  information,  the  Commission  agrees  that  creditors  should  be 
obliged to always use the form.  

In  the  provision  on  linked  transactions,  the  Parliament  had  proposed  the 
existence of a pre-existing agreement between the creditor and the supplier as a 
necessary condition for the consumer to pursue remedies against the creditor in 
case of non-supply, partial supply or non conformity. This was accepted by the 
Commission,  however  the  Council  did  not  retain  the  idea.  However,  the 
Common Position leaves it to Member States, as suggested by the Parliament, 
to determine to what extent and under what conditions these remedies shall be 
exercisable. 

As  regards  open-end  credit  agreements,  the  Commission  was  not  against  the 
obligation to obtain explicit prior consent from the borrower before renewing 
an agreement, but this was not maintained in the Common Position. 

The  amendment  proposed  by  the  Parliament  regarding  the  article  on  the 
performance  of  a  surety  agreement  was  not  applicable  as  the  whole  issue  of 
sureties was excluded from the scope of the Directive. The same applies to the 
article on default notice and enforceability. 

Amendments not acceptable 

The suggestion of the Parliament to foresee that credit agreements would have 
to  be  drawn  up  in  writing  was  not  incorporated  in  the  Common  Position 
because  the  Commission  and  the  Council  think  that  the  formal  requirements 
must  be  in  line  with  all  the  features  of  distance  marketing.  However,  the 
Council included a possibility for the Member States to maintain or introduce 

EN 

7 

   EN 

 
 
 
 
 
 
 
 
 
 
national  rules  regarding the validity of the conclusion of the  contract [Article 
10(1) (3)]. 

On  the  APR  (Article  19),  the  Parliament  had  proposed  to  explain  the 
calculation  formula  in  further  detail  in  the  relevant  Article.  The  Council  and 
the Commission have considered that having the formula in the Annex, which 
is not only indicative but is part of the legislative text, was sufficient. 

The assumption of a constant capital balance for the calculation of the APR in 
the case of open-end credit agreements, as proposed by the Parliament, was not 
accepted as it does not reflect the reality of open-end credit. 

In the case of linked transactions, the Parliament had proposed that in the case 
of withdrawal from the credit agreement, the consumer should not be bound by 
the  linked  purchase  agreement  anymore.  This  was  not  accepted  by  the 
Commission and Council because this Directive deals with credit contracts and 
not the contracts of sale. In addition, this might lead suppliers to delay delivery 
of goods or services until the end of the withdrawal period. However, Member 
States may still introduce or maintain such systems at national level. 

On  overrunning,  the  wording  proposed  by  the  Parliament  referring  to 
"unauthorised  overrun"  was  not  incorporated  because  it  refers  to  something 
which 
is  not 
"unauthorised" [Article 18]. 

therefore,  by  nature, 

the  creditor  and 

is  accepted  by 

On  the  harmonisation  approach,  the  Parliament  had  proposed  to  introduce  a 
minimum harmonisation clause in the Directive. This was not incorporated in 
the  Common  Position.  The  Commission  believes  that  the  minimum  clause 
contained  in  the  current  Consumer  Credit  Directive  has  led  to  very  different 
legislations in the Member States, resulting in market entry barriers and market 
fragmentation.  Launching  the  process  for  the  establishment  of  a  genuine 
internal  market  for  consumer  credit  being  one  of  the  key  objectives  of  the 
Directive,  the  Commission  is  of  the  opinion  that  the  full  harmonisation  as 
foreseen in the Common Position (Article 22) is absolutely necessary, not only 
on the issue of the APR as suggested by the Parliament amendments, but also 
on the other key issues dealt with by the Directive.  

3.3  New provisions introduced by the Council 

The Council added overdrafts which have to be repaid in one month to the list 
of exemptions to the scope of the Directive [Article 2 (2) (e)]. However, a short 
list  of  information  is  to  be  given  at  pre-contractual  stage  [Article  6  (5)].  As 
these credits cover only a very short period of time and therefore will not lead 
to extensive costs, this exemption is acceptable.  

In  the  area  of  mortgage  credits  the  Council  introduced  two  new  exemptions 
which cover credits designed to finance the purchase of immovable property in 
a  similar  way  as  mortgage  credits  [Article  2  (2)  (a,  second  alternative)]  and 
credits by banks based on Islamic faith principles in the UK [Article 2 (2) (b)]. 
The  Commission  supports  these  exemptions  because  they  intend  to  cover 

EN 

8 

   EN 

 
 
 
 
 
 
 
 
specific  legal  solutions  in  some  Member  States  which  are  comparable  to 
mortgage credits. 

In  line  with  the  light  regimes  created  for  overdrafts  and  overrunnings  the 
Council introduced definitions for both types of credit agreements, in the case 
of overdrafts based on a suggestion of the Commission [Article 3 (d) and (e)]. 

Regarding  pre-contractual  information,  the  Council  introduced  a  mandatory 
standardised form which will be exactly the same in all Member States and has 
to  be  used  by  creditors  to  provide  the  consumer  with  pre-contractual 
information [Article 5 (1, second sentence)/ Annex II]. The Commission fully 
supports  this  because  the  form  will  facilitate  comparison  of  offers  for 
consumers and the pre-contractual information will be more understandable for 
consumers.  

In  the  cases  of  light  regimes  the  Council  drafted  a  special  standardised  form 
(Annex III) which is not mandatory, but can be used by creditors to discharge 
their  pre-contractual  information  obligations  [Article  6  (1,  fourth  and  fifth 
sentence)]. 

The Council introduced some new provisions for the credit agreement itself. It 
added to  the  information requirements information on other contractual terms 
and conditions [Article 10 (2)(t)], the supervisory authority [Article 10 (2)(u)] 
and  a  general  warning  regarding  the  consequences  of  missing  payments 
[Article 10 (2)(m)]. In cases of overdrafts the same leeway for Member States 
regarding the indication of the APR is foreseen [Article 10 (2) (g)]. Whereas all 
these additions can be supported by the Commission, the Council amendment 
that Article 10 should be without prejudice to any national rules regarding the 
validity of the conclusion of credit agreements is more problematic. Article 10 
is  meant  to  be  a  fully  harmonised  provision,  therefore  Member  States  should 
not  be  free  to  regulate  formal  requirements  (e.g.  handwritten  signature  of  the 
contract)  at  national  level.  Such  formal  requirements,  which  are  not 
harmonised, can become internal market barriers. 

Concerning the information on the borrowing rate [Article 11], the Council has 
determined that the information in the case of a change to the borrowing rate 
should be given only periodically if it is linked to a change in a reference rate, 
in order to avoid unnecessary bureaucracy and an overload of information for 
the consumer. 

The  Council  has  introduced  a  more  detailed  description  of  the  procedure  for 
exercising  the  right  of  withdrawal.  It  also  added  a  paragraph  (Article  14  (6)) 
according  to  which  Member  States  may  maintain  national  provisions 
establishing a period of time during which the execution of the contract cannot 
begin. 

On early repayment (Article 16), the Council has introduced the possibility for 
creditors  to  claim  compensation  in  case  the  consumer  repays  early,  under 
certain  conditions.  Member  States  may  fix  a  threshold  of  maximum  €10,000 
for the amount repaid early below which no compensation may be claimed; the 
maximum  compensation  is  1%  of  the  amount  repaid  if  the  rate  is  fixed  for 

EN 

9 

   EN 

 
 
 
 
 
 
 
 
more than one year and 0.5% otherwise. In addition, the creditor is not entitled 
to  compensation  if  the  ECB  reference  rate  has  raised  between  the  date  of 
conclusion of the agreement and the date of early repayment. The Commission 
believes  that  harmonisation  of  compensation  calculation  is  useful  in  view  of 
the internal market objective, and that the conditions agreed by the Council do 
not  harm  the  level  of  consumer  protection.  However,  the  Commission  would 
have preferred a higher level of harmonisation on this issue. 

The  Council  added  the  possibility  of  recourse  to  comitology  (according  to 
Articles 5a(1) to (4) of Decision 1999/468/EC, having regard to the provisions 
of Article 8 thereof) for determining the assumptions to be used for calculating 
the  APR  for  certain  types  of  credits  [Article  19(5)].  This  is  reflected  in  the 
Common  Position  at  Article  25,  and  is  supported  by  the  Commission.  The 
highly technical nature of this issue was not adapted for an in-depth discussion 
in  the  Council,  which  therefore  decided  to  leave  it  to  a  more  adapted 
procedure. 

The Directive contains a number of regulatory choices for the Member States 
(possibility  to  apply  a  light  regime  only  to  certain  credit  agreements  [Article 
2(5)  and  (6)],  to  foresee  indication  in  advertising  of  the  APR  only  [Article 
4(1)],  right  not  to  impose  the  indication  of  the  APR  for  overdrafts  in 
advertising, pre-contractual  and  contractual  information  [Article  4(2)(c),  6(2), 
10(2)(g)],  possibility  to  adapt  assistance  for  consumers  [Article  5  (6)],  not  to 
foresee  the  right  of  withdrawal  in  case  of  notarial  contracts  [Article  14  (5)], 
right to determine remedies for linked credit agreements [Article 15 (2)], right 
to  maintain  or  introduce  conclusion  validity  rules  [Article  10(1)]  and  to  fix  a 
threshold of maximum €10,000 below whic h no compensation can be claimed 
for  early  repayment  [Article  16(4)]).  The  Council  added  an  obligation  for 
Member States to inform the Commission when they make use of most of these 
choices,  so  that  this  information  can  be  made  public  (Article  26).  This  is 
complemented with a provision which foresees monitoring by the Commission 
of  the  effect  of  the  use  of  these  regulatory  choices  on  consumers  and  the 
internal market [Article 27 (2)]. The Commission agrees with those additions. 

4. 

CONCLUSIONS 

The  Common  Position  is  satisfactory  as  regards  four  of  the  five  key  issues  of  the 
Directive. Pre-contractual information, contractual information, APR and the right of 
withdrawal are fully harmonised and guarantee a high level of consumer information 
and protection, while putting in place the conditions for a genuine internal market in 
consumer  credit.  The  standardised  pre-contractual  information  form  introduced  by 
the Council will provide consumers with a good basis for comparison of offers. 

The  Commission  was  in  favour  of  further  harmonisation  on  the  issue  of  early 
repayment.  The  Commission  did  not  support  the  possibility  for  Member  States  to 
maintain or introduce national legislation regarding the validity of the conclusion of 
credit  agreements.  However,  it  considers  that  the  overall  compromise  found  by  the 
Council  can  be  supported,  taking  into  account  the  progress  done  on  the  other  key 
areas and the difficulties to achieve an agreement in Council at all.  

EN 

10 

   EN