Banks' clients will have 14 days to cancel consumer credits

Clients who take out consumer credits will be able to cancel the loan within 14 days from the signing of the contract without giving a reason, and without having to pay any additional tax, according to a directive approved on Wednesday by the European Parliament. The new regulation, which targets the market of consumer credits will force banks that operate in the EU to provide standard information to clients on the credit costs and payment conditions, as well as on the advantages and disadvantages of the various offers. The consumer credits category includes loans that range from 200 to 75,000 euros. Mortgage credits and overdrafts do not fall within the scope of this regulation. The directive is aimed to facilitate the securing of funding by European consumers from other member states, explains the European Parliament’s website. The standardisation of information and the easier access to credits from other member states will heighten competition and in turn reduce clients’ costs.