The European Commission has revealed plans to open up the consumer credit market, which will allow borrowers to shop overseas for the best deal.
<p>The Consumer Credit Directive, which will come before the European Union (EU) council for approval on May 21, 2007, has a vision to open up the E800 billion a year European credit market and provide greater transparency for consumers and business competitors.<br /><br />Under the new rules, customers across the EU will receive standard, comparable information when taking out credit loans. The information given to consumers, such as interest rates, amount, number and frequency of payments, must be set out in a new comparable EU-wide European credit information form. This single application form will encourage creditors across all member states to offer the same standard of service. <br /><br />By allowing borrowers to have access to more markets, the commission hopes that consumers will be offered more competitive fees and charges. <br /><br />The move is also said to be part of a bigger drive to boost the cross-border market in retail financial services.</p>