The European Commission's publication of a credit website sweep must be followed up by national authorities to ensure that all websites offering credit in the EU are abiding by the EU's Consumer Credit Directive, Malcolm Harbour MEP, chairman of the European Parliament's internal market and consumer protection committee, said today.

 

He was speaking after the commission revealed that 38 out of 47 sites in the EU which were spot-checked were in breach of rules aimed at ensuring that clear information for people considering a credit offer, will avoid nasty shocks later on.

 

Mr Harbour, Conservative MEP for the West Midlands, said:

 

"In these difficult times it is more important than ever that we ensure consumers are fully informed about the cost of credit. The Consumer Credit directive seeks to bring clarity to a sometimes opaque and confusing marketplace and it is right that the commission is seeking to enforce it.

 

"People should never be asked to take out credit without a clear understanding of all the costs and terms. I hope that the national authorities follow up this sweep with vigour and impose strict penalties on the websites that fail to adhere to the rules. It is in the interests of both consumers and lenders that people go into a credit agreement with a full understanding of the commitment they have made.

 

My Committee was already concerned about the lack of safeguards, and we are now collecting evidence for a major review of the EU Directive that will be started shortly."

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