25 November Consumer Council

Date: 28/11/1996

CONSUMER ministers agreed on a single formula for calculating consumer credit charges (APR). The move will make it easier for consumers to shop around for credit deals in all member states. Differing rules for calculating charges currently make such comparisons very difficult, with the result that a single market in consumer credit services is to all intents and purposes non-existent.

EUROPEAN Commission plans to improve access to justice for Europe's consumers were discussed, with ministers agreeing to provide citizens with an informal and speedy means to redress complaints, avoiding expensive court procedures. Irish Consumer Affairs Minister Pat Rabitte noted that court costs amounted to more than the damages claimed in many cross-border cases. “Independent research has shown the average cost of in-court settlement of a transfrontier EU case worth 2,000 ecu is in fact 2,500 ecu and can take on average 2 years,” he said. “This obviously discourages consumers from taking action in their own interest. It is essential therefore, that we have cheaper and faster methods, especially for small claims.”

PROTECTING the consumer in the information society was the subject of a wide-ranging debate by ministers. The talks focused on four main themes: developing a better understanding of the opportunities offered by the information society; acquiring the knowledge and skills necessary to take full advantage of new technologies; giving consumers the confidence to buy and use information society goods and services; and enabling all consumers to benefit from the advances. Ministers stressed that people must not be excluded from these benefits just because they were economically disadvantaged or lived in remote areas.

VULNERABLE consumers need special consideration, Rabitte insisted. He presented a specially-drafted report looking at possible amendments to consumer policy to take into account the needs of disadvantaged groups of society. The report said vulnerable people such the elderly, the disabled, children and people living in poverty often found it extremely difficult to seek redress under existing policies and legislation.

PRACTICAL and timely information on the euro is needed to ensure that consumers are aware of how the change to the single currency will affect them. Ministers hoped that such information would be provided in good time.