European Commission 11 September 2002, Proposal for a Directive of the European Parliament and of the Council on the harmonisation of the laws, regulations and administrative provisions of the Member States concerning credit for consumers

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This Commission proposal (COM/2002/0443) seeks to replace Directive 87/102/EEC by establishing a maximum harmonisation framework governing all forms of credit and surety agreements offered to consumers across EU Member States, with Article 95 EC Treaty as its legal basis and the codecision procedure under Article 251 as its legislative vehicle. Key provisions introduce comprehensive pre-contractual information duties, a standardised annual percentage rate of charge (APR) calculation methodology, a 'responsible lending' obligation requiring creditors to assess borrower solvency, mandatory central databases for defaulting consumers, a fourteen-day right of withdrawal, restrictions on door-to-door credit solicitation, and regulated debt recovery practices. The directive extends protection to guarantors (sureties), covers credit intermediaries, and prohibits Member States from maintaining divergent national provisions in areas harmonised by the directive, subject to limited exceptions for positive credit databases and burden-of-proof rules.AI