European Union Boosts Competition in Consumer Credit
Großansicht des Bildes mit der Bildunterschrift: European consumers can soon check out loan conditions outside of national borders
EU member states have agreed on more consumer-friendly rules for credit and personal loans. Harmonizing these regulations across the 27-nation bloc will make it easier for consumers to shop around for the best deals.

The new consumer credit directive will fully standardize the patchwork of existing national regulations for loans of up to 100,000 euros ($135,000), according to the EU Council.

"These differences in national legislation are considered as obstacles to the internal market," the council said in a statement.

Consumers will in future benefit from the same information and rghts regardless of where they live in the European Union, it said.

The reform, which has been in the works for five years, is supposed to boost competition among consumer credit providers.

Bildunterschrift: Großansicht des Bildes mit der Bildunterschrift: German consumers run up the most debts in the EU
German consumer protection agencies, however, have not welcomed the move. Across the EU, German consumers take out the most personal loans. The agencies said they feared the new directive would prompt Germans to run up even more debts than was already the case.

Shopping for the best deal

The council, however, said the new directive would also improve consumer protection.

"This agreement delivers clear practical advantages to Europe's consumers," said German Justice Minister Brigitte Zypries, who chaired the meeting of ministers in charge of competitiveness issues where the deal was agreed on Monday.

Zypries said in the future, it would be possible to make "genuine comparisons" among credit offers throughout Europe.

"Credit providers will be subject to uniform transparency rules, and the annual percentage rate of charge for credit will be calculated in accordance with uniform standards," Zypries said.

The new directive still needs final approval from the European Parliament.

Identifying opportunities beyond national borders

Bildunterschrift: Großansicht des Bildes mit der Bildunterschrift: Zypries hopes for more transparency
Consumer credit rates currently vary widely across the EU from as low as 6 percent in Finland to as high as 12 percent in Portugal. Despite such variations, few Europeans try to take advantage of cheaper rates in other countries, with less than 1 percent of all consumer credit taking place across EU borders.

"Of course, most consumers will enter credit agreements with nearby banks, or at least banks in their own country," Zypries said.

"However, this directive will make it easier for the growing proportion of mobile citizens and users of Internet banking services to identify opportunities beyond the borders of their national credit markets," she said.
http://www.dw-world.de/dw/article/0,214 ... 23,00.html


If the EU is not a nation state its self, then I got a bridge in new york city to sell you. Because this is about as close you can get.