Harmonization: A Need for EU Action on Consumer Credit?

In: Jørgensen , T 2015 , ' Harmonization: A Need for EU Action on Consumer Credit? ' , European Business Law Review , vol. 26 , no. 5 , pp. 743-764 .

Open Access

Abstract

As in the consumer area in general, the objective of the internal market has been applied as a reason why there is a EU need for action regarding consumer credit. Even though it is more than 25 years ago since the first Consumer Credit Directive harmonized aspects of the legislation in the Member States, cross-border activities are still extremely low. The achievement of the internal market depends on the consumers' and the creditors' overall incentives to cross-border activities, where harmonized aspects of the legislation are only an insignificant motivation. Despite a need for EU action may seem small, there is still a need for EU action, but with a different approach that considers the nature of consumer credit. This means a focus on preventing overindebtedness and ensuring financial stability as well as a high level of consumer protection in a financialized and thereby more complex and globalised world.