WRITTEN QUESTION No. 2616/97 by Richard HOWITT to the Commission. Banks and building societies - hidden payments on mortgage arrears
C 76/130 EN Official Journal of the European Communities 11. 3. 98 (98/C 76/246) WRITTEN QUESTION P-2616/97 by Richard Howitt (PSE) to the Commission (18 July 1997) Subject: Banks and building societies › hidden payments on mortgage arrears In response to a complaint from my constituent, Mr Hill of Leigh-on-Sea, who is seeking reimbursement from the Cheltenham and Gloucester Building Society of unauthorised legal charges added to his mortgage, can the Commission: 1. Advise of any other such complaints of hidden charges and fines resulting in increased arrears particularly where they have resulted in repossessions; 2. Confirm if this practice by financial institutions is in breach of any EU directives; 3. Investigate all cases relating to this issue raising it in the appropriate forums. Answer given by Mr Monti on behalf of the Commission (9 September 1997) The Commission has not received any other complaints on problems similar to the one raised by the 1. Honourable Member. 2. The Honourable Member’s question does not make it possible to gain a clear idea of the practice in question. In any case, the problem of charges and penalties connected with mortgage contracts is not covered by a Community harmonisation directive and is therefore subject to national law concerning contracts. Consumer credit is another matter. This is covered by Directive 87/102/EEC as amended by Directive 90/88/EEC (1), which lays down the principle that the annual percentage rate of charge for credit must include all costs which the consumer has to pay, excluding those listed in Article 1a(2). Community law on consumer credit was designed to ensure that consumers do not incur costs without their knowledge. The Commission has begun to look into the possibility of achieving the same level of transparency for mortgage credit. As the question concerns áunauthorised legal chargesí, the Commission has no doubt that the complainant 3. will take the necessary administrative and legal steps open to him under national law. (1) OJ L 61, 10. 3. 1990. (98/C 76/247) WRITTEN QUESTION P-2617/97 by Glyn Ford (PSE) to the Commission (18 July 1997) Subject: Commission anti-dumping investigations into unbleached cotton (greycloth) imports In light of the uncertainty created by repeated anti-dumping investigations into greycloth imports, which has undoubtedly contributed to the loss of jobs in the Greater Manchester area, will the Commission indicate why it is again investigating essentially the same complaints as have already been rejected by the Council of Ministersí anti-dumping committee? Answer given by Sir Leon Brittan on behalf of the Commission (4 September 1997) Although the Commission realises the burden of an investigation for the interested parties, it is bound by Council Regulation (EC) No 384/96 on protection against dumped imports from countries not members of the European Communities (1) to open an investigation when there is sufficient evidence to justify initiating a proceeding. Due to the objective criteria set out in Council Regulation (EC) No 384/96 for the initiation of anti-dumping