According to AFX News, the committee said that debt among Britons was a “cause for concern” and that it was often the case that a “highly pressured marketing environment” was forcing lenders to target borrowers with insufficient explanation of financial products.
With the new EU directive, the committee fears that British legislation will be unable to make its own decisions about how consumers should be looked after.
Baroness Thomas, the committee’s chairwoman, said: “All our evidence shows they are based on a false premise and we fear they will do more harm than good.
“A single market would give consumers more choice and open up huge opportunities for UK finance houses, but the appropriateness and impact of these proposals has not been thought through.”
Concerns over the directive are unsurprising considering that levels of consumer debt in the UK are worse than any other European country.