Buying consumer credit on-line: following EU action, over 75% of websites checked now give satisfactory information to clients

Before consumers enter into a loan, they need to understand its real cost and take the time to reflect, especially on the monthly repayment. The Consumer Credit Directive lists the information that need to be given in advertising of credits and as part of credit offers and provides for a 14 days reflexion time, during which the consumer may back out of the agreement without charge. Following a crackdown on websites offering consumer credits, more than 3 out of 4 sites checked a year ago now comply with EU law (compared with only 30% in September 2011). Further improvements should come as national authorities pursue their actions on outstanding cases. In this EU co-ordinated "Sweep" investigation, which took place in September 2011, national enforcement authorities checked 565 websites across the 27 Member States, Norway and Iceland. Of the 70% of sites flagged for further investigation at the time, 10% were finally deemed compliant and 35% were corrected after action by national authorities. The remaining websites either no longer exist or are subject to on-going administrative or court proceedings.

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