Brussels, 15/10/2007 (Agence Europe) - During the General Affairs Council of Monday 15 October, the Council formally adopted the proposed directive introducing a single legal framework for payments in Europe. The objective of this legal framework is, amongst other things, to reduce costs pertaining to payments, by dint of increased competition between service providers. The inter-institutional political agreement on the final text of the directive was obtained at the end of April, after the European Parliament had enshrined the preliminary agreement of the Council, returned one month earlier (see EUROPE 9413, 9395 and 9392).
The directive, which will apply no later than 1 November 2009, it establishes the right of economic operators other than banks (e.g. mobile telephone operators, large distribution companies) to offer payment services to the public. These new payment institutions must respect harmonised requirements in terms of own capital held and the publication of information for users. The execution deadline for a transaction will be set at “Day + 1”, to represent the day after the date on which the payment order was raised.
The new payment establishments will be allowed to grant credit to their clients, under certain conditions. Credit will be subject to a duly identified payment provision and will be carried out over a period not exceeding 12 months. It cannot be granted on funds the object of which is to make a payment and the own funds of the service provider must always be appropriate to the total amount of loans granted. The directive modifies directives: - 2000/12/EC governing the activities of credit institutions; - 97/7/EC on consumer protection in remote contract matters; - 2002/65/EC on the remote sales of financial services to consumers. (M.B.)