The Consumer Ombudsman is critical of the EU Commission’s proposed changes to the EU directive on payment services.
New digital concepts give way to new payments services, e.g. mobile payment. The Consumer Ombudsman welcomes easier and cheaper payment services, as long as consumer rights are being ensured.
– Consumers have the right to be equally protected regardless of the payment method they choose. Consumer safety leads to consumer trust, which encourages competition and development in the market, says Nergård.
Unfortunate division
The EU Commission suggests, among other things, exceptions from the rules in the EU directive for digital services charged on the mobile telephone bill. The Consumer Ombudsman strongly disagrees with this. The exception will mean that mobile users will not have the same rights when paying for apps via Google or iTunes app stores using the mobile bill as the will have when paying with credit card.
– The consumer’s choice of payment method is often random. The suggested exception will create an unfortunate and artifical division of payment services that appear similar to the consumer, says Consumer Ombudsman Gry Nergård.
She emphasises that clear consumer rights should also be in the self-interests of the industry.
– Consumers being insecure of their rights is negative to the industry as well. Consumers must trust new payments services before they start using them. The Commissions suggestion may contribute to limit the use of new services, says Nergård.
The consumer must bear the loss
The EU Commission also proposes changes that will weaken Norwegian consumers’ rights when it comes to misuse of payment instruments, e.g. theft of credit cards.
This will, among other things, imply that the consumers in many cases must bear the entire economic loss if he has shown gross negligence . Today the consumer is responsible for up to 12.000 NOK, but this limit will removed if the EU Commission’s proposal passes.
– Cases from the Norwegian Financial Services Complaints Board show that misuse can result in a much higher amount than 12.000 NOK being lost. For the consumer, it is potentially a considerable financial strain to be held responsible for the entire economic loss, says Consumer Ombudsman Gry Nergård.
The Consumer Ombudsman has sent her remarks on the EU Commission’s proposal to the National Ministry’s reference group for capital flow and financial services, which will evaluate possible Norwegian positions on current and future proposals in the EU.
Press contact at the Consumer Ombudsman:
Gry Nergård, Consumer Ombudsman (Tel.: +47 99 00 50 80)