EU-wide loan rates for consumers

CONSUMERS will be able to compare rates with financial institutions across the EU when looking for a personal loan under new laws drawn up yesterday.

After three years trashing out a deal, the European Commission agreed on legislation that effectively puts a single credit agreement in place across the 25 member states. The new law will govern credit, other than mortgages, of up to €50,000 and allow member states some flexibility to adapt the rules to their national situation.

It sets out a harmonised method of calculating the cost of credit which means consumers can compare like with like throughout the EU when looking for the cheapest credit.