EU draft directive on consumer rights

The EU consumer rights draft directive  results from the review of the Consumer Acquis launched in 2004 which resulted in a green paper in February 2007. The acquis aims to update, consolidate and align eight existing directives that protect consumers. The directive is intended to be fully harmonised across the EU. A helpful summary of the contents of the directive, together with an account of recent discussions by MEPs is contained in the briefing from the European Mortgage Federation (EMF).  Also attached here is the draft directive itself.

DBERR recently undertook a consultation on the implications of the directive for the UK and the CML responded. The CML response focused on Chapter lll of the directive consumer information and withdrawal right for distance and off-premises contracts. It appears that articles 8 to 20 relating to information for consumers and a right of withdrawal from a contract  could be applied to some secured lending originated off-premises. This would clearly be undesirable. In addition, article 31 appears to proscribe member states from imposing presentational requirements in relation to contractual terms. Potentially, this could cut across UK FSMA and CCA requirements.

It appears that the draft directive will not now receive a 1st reading before the June 2009 European elections. Nevertheless, the CML will follow up the above matters of concern with DBERR and has raised them with the EMF.