On 05.05.2025, with the opening of a public consultation on a draft new Consumer Credit Act, the process of transposition into national law of the requirements of Directive (EU) 2023/2225 of the European Parliament and of the Council of 18 October 2023 on credit agreements for consumers, which repeals the existing Directive 2008/48/EC, was launched.
The new Directive aims at adapting the consumer credit market to the increasing digitalisation of credit, strengthening consumer protection and achieving a higher level of harmonisation across Member States.
The main changes to the consumer credit regime introduced by the Directive include:
– The upper limit of credit to which the provisions will apply is increased;
- Stricter requirements to provide clear and understandable pre-contractual information without information overload for the consumer;
- Stricter requirements on the advertising of credit products. Member States should introduce specific provisions on the advertising of credit and in all cases advertisements should contain an explicit warning that borrowing money costs money. Adverts that persuade that credit will improve the consumer's financial situation or claim that credit recorded in databases has little or no relevance to the assessment of a credit application are prohibited. Advertisements that emphasize the ease or speed of credit also fall within this scope.
– So-called 'tying practices', where a credit agreement is offered only as a bundle with other financial products or services, are prohibited, as are their clear distinction from so-called 'bundling practices', where a credit agreement is offered as a bundle with other financial products or services but also separately;
- Prohibition of the use of implied consumer consent to enter into a credit agreement or to purchase additional services;
– Higher requirements for assessing the consumer's creditworthiness. Credit may only be granted where the result of the creditworthiness assessment conclusively shows that the monetary commitments made will be met by the borrower without difficulty, subject to the terms of the contract. Where the assessment is based on an automated decision-making system, the consumer has the right to obtain comprehensible and detailed information from the creditor about the assessment, to state his or her point of view, and to request a review of the assessment.
– Obligation to take measures to prevent over-indebtedness of the
consumers;
– Authorisation, registration and supervision for all creditors and credit intermediaries, including those acting in an ancillary capacity.
The deadline for transposition of the Directive by the Member States is 20 November 2025 and the rules provided for therein will apply from 20 November 2026. The draft law with its explanatory memorandum should then be published for public consultation.