Projekt 1081

Titel/Title

Study of the Legislation relating to Consumer Overindebtedness in all European Union Member States

Projektträger/Principal

European Commission

Status/State

Finished in September 2003

Report

Publication as book is intended in 2004

Object of Investigation

The study had to examine the preventive and remedial measures to prevent or correct excessive debt, particularly with regard to general procedures for granting consumer credit, including all ways in which credit lines or accounts can be exceeded, the payment facilities linked to credit or payment cards as well as the payment facilities granted by gas, water, electricity, telephone or telecommunications suppliers in general. The following measures were particularly important: advice given to consumers, information and training about credit and managing household finances, and all the provisions provided with the credit cycle. Concerning the latter, the focus should be on the following: information to be provided to the consumer should his payment be late; suspension of the right to credit withdrawals or to the supply of gas, electricity, water, or any other basic service or good; being able to consult databases on consumer debt or a possible obligation to do so; the responsibilities of lenders, credit intermediaries or any other creditor with regard to (excessive) consumer debt; the role, powers and legal situation of debt mediators as well as the control and management of secondary effects of (excessive) debt, such as the failure to pay mandatory insurances, or having credit and access to basic financial services refused. Legislative provisions – or the lack of them – concerning debt recovery and the regulation of this professions had also to be examined.

Proceeding and Scope of the Study

The project was carried out jointly with Prof. Nick Huls (Erasmus University Rotterdam) and Dr. Johanna Niemi-Kiesiläinen (University of Helsinki). In order to compile the information required an extensive questionnaire was prepared and sent to experts in all European Union Member States. The study consisted of four parts: extensive information gathering from the Member States, compilation of the information into a data bank, evaluation of the data with clarifications from the informants and drafting of recommendations.

Authors of the Study

• Prof. Dr. Udo Reifner (Institute for Financial Services Hamburg)
• Prof. Dr. Nick Huls (Erasmus University Rotterdam)
• Dr. docent Johanna Niemi-Kieseläinen (University of Helsinki)
• Helga Springeneer, Attorney at Law (Institute for Financial Services Hamburg)

Contact: info@iff-hamburg.de