Euro court rules on credit checks

Lenders, such as banks, must be able to prove they have checked the credit worthiness of borrowers, and have given them information, according to the European Court of Justice.

The EU directive on credit agreements for consumers obliges creditors to provide information and explanations so that the borrower can make an informed choice when taking out a loan.

It also says the creditor must provide consumers with a standard European consumer credit information form, and must check the their creditworthiness.