Act implementing the Consumer Credit Directive 2023 passed

On 17 April 2026, the German Federal Parliament (Deutscher Bundestag) passed the Act implementing the Consumer Credit Directive (EU) 2023/2225 of 18 October 2023 (CCD 2023). The Act largely corresponds to the government bill, with only a few adjustments. These changes follow the recommendation of the Committee on Legal Affairs (Rechtsausschuss) and relate in particular to exceptions for debit cards with deferred payment (see BT-Drs. 21/5381). New provisions on scoring (section 37a of the Federal Data Protection Act (Bundesdatenschutzgesetz)) have also been added, which will not be discussed separately below.

Changes to consumer credit law

The significant changes to consumer credit law already provided for in the government bill remain in place in substance (see also section 10 of the information paper from Federal Ministry of Justice and Consumer Protection (Bundesministerium der Justiz und für Verbraucherschutz)). These changes mainly concern the following provisions (for details, see also our article on the government bill).

• Expansion of scope in the case of standard consumer credit agreements:
  • In future, consumer credit law will also apply to interest-free and short-term loans, as well as loans under EUR 200 and corresponding deferrals of payment (section 491 of the German Civil Code (Bürgerliches Gesetzbuch – BGB)). This will mean that “buy now, pay later” models in particular will be more strictly regulated. Exceptions are provided for purchases on account: consumer credit law does not apply where the trader itself – i.e., without involving a third party – grants the consumer an interest-free deferral of payment of no more than 50 days. However, large online providers may only benefit from this exception if the payment period is no more than 14 days and no third party acquires the loan, the deferral, or the financing assistance in its entirety (section 506(1), sentence 2 no. 5, sentence 3 BGB; BT-Drs. 21/5381, p. 19). The privilege therefore – unlike what was provided for in the government bill regarding the German wording of the CCD 2023 alone – not already ceases to apply once the individual payment claim is assigned.
  • At the initiative of the Committee on Legal Affairs (BT-Drs. 21/5381, p. 19), debit cards with deferred payment provided by credit and payment services institutions are also exempt from the scope of consumer credit law. The prerequisite is that the funds made available must be repaid within 40 days, the deferral is interest-free, and only low charges are incurred for the payment service (section 506(1), sentence 2 no. 4 BGB). The explanatory memorandum clarifies that the relevant provisions on authorised overdraft facilities or tolerated overdrafts, where repayment exceeds the positive balance in the account, remain unaffected. Accordingly, where such debit cards with deferred payment provide – as is typically the case – a credit line in case of overdraft, they remain subject to consumer credit law (see also BT-Drs. 21/5381, p. 15).
• Stricter rules for overdraft facilities: A right of withdrawal now applies to authorised overdrafts (section 504 BGB). In addition, for authorised and tolerated overdrafts, information obligations apply in the event of intended termination, as well as the possibility to pay in instalments to avert compulsory enforcement (sections 504(2) and 505(5) BGB).
• Removal of the written form requirement for standard consumer credit agreements and borrower’s right to choose: When entering into a standard consumer credit agreement, text form (section 126b BGB) will suffice in future; the previous written form requirement no longer applies (section 492(1), sentence 1 BGB). This represents a significant simplification, particularly for digital application processes. Furthermore, pre-selected options will be prohibited (section 492(1a) BGB). Under this provision, it is not sufficient for the borrower’s contractual declaration to be given through pre-set options – in particular, pre-ticked boxes; this also applies to ancillary services such as residual debt insurance. A further new feature is the borrower’s right to choose to receive contract documents and other information in paper form or on another durable medium (e.g., by email or via an online customer account) (Art. 247, section 2(1) of the Introductory Act to the German Civil Code (Einführungsgesetz zum Bürgerlichen Gesetzbuche – EGBGB)). The borrower has a comparable right to choose how the lender reminds them of their right of withdrawal, where less than one day elapses between the pre-contractual information and the conclusion of the contract – as is typically the case for online contracts (Art. 247, section 2(4) EGBGB; see further below). The choice made must be documented in the contract. This will require adjustments to standard contract templates as well as digital application processes.
• Stricter credit checks: Granting a loan – as well as any significant increase in the net loan amount – will in future only be permitted if loan repayment is likely, and this now also applies to standard consumer credit agreements (section 505a(1), sentence 2 and subsection (2) BGB). The credit check for standard consumer credit agreements is thus aligned with the level of scrutiny applicable to consumer loans relating to immovable property. For “buy now, pay later” transactions, existing liabilities must be taken into account. For authorised overdraft facilities, repayment in the event of termination should be possible from the monthly disposable income in a maximum of twelve monthly instalments (BT-Drs. 21/5381, p. 16). For tolerated overdrafts, the check is only required once before a fee is agreed (BT-Drs. 21/5381, p. 16). In addition, stricter regulation will govern which information may be used as the basis for the credit check (section 505b(2), sentence 2 and subsection (3), sentence 1 BGB).
• Leniency measures must be offered: Lenders are now also obliged under civil law to exercise reasonable leniency in favour of the borrower before initiating enforcement measures, where this is appropriate in the circumstances (section 497a(2) BGB).
• Maximum withdrawal period and removal of the presumption of lawfulness: The Act also introduces a maximum withdrawal period of twelve months and fourteen days from the conclusion of the contract, with the period only starting to run once information has been provided in accordance with Art. 247, section 6(1), sentence 1, no. 17 and subsection (2), sentences 1 and 2 EGBGB (section 356b(2), sentence 5 BGB). The term “information” used in the Act – as was already the case in the government bill – is deliberately not narrowed to “legally compliant” information, as was still envisaged in the draft bill (see draft bill, p. 77; government bill, p. 81). Of particular practical relevance is the complete removal of the existing statutory model withdrawal information set out in Annex 7 EGBGB. This also eliminates the associated presumption of lawfulness, meaning that lenders will in future need to ensure that their withdrawal notices are legally sound on their own terms. In addition, a new reminder obligation for “fast contract conclusions” is introduced (Art. 247, section 2(4) EGBGB): where the consumer receives the pre-contractual information less than 24 hours before the conclusion of the contract (as is typical for online transactions), they must be expressly reminded of their right of withdrawal and the modalities for exercising it between one and seven days after the conclusion of the contract.

Changes to financial supervisory law

The Act also follows the proposals relating to financial supervisory law set out in the draft bill (for details of the financial supervisory provisions, see our corresponding article on the draft bill). No material changes were added in this area during the Committee deliberations compared to the government bill. The following points therefore continue to merit particular attention:

Independent licensing requirement for intermediaries of standard consumer credit agreements and financing assistance (section 34k of the German Industrial Code (Gewerbeordnung ‒ GewO)

• An independent, albeit not materially new, licensing requirement for the commercial intermediation of standard consumer credit agreements and financing assistance is introduced under section 34k GewO. The Act clarifies that the licensing requirement only applies to intermediation in return for remuneration, which may consist of a cash payment or another agreed economic benefit. At first glance, this seems surprising, as the requirement for commercial activity already presupposes an intention to make a profit. The explanatory notes to the legislation use as an example the case of a commercial agent who, on behalf of a company, arranges sales of goods and receives remuneration exclusively for the sale of goods and (presumably this should be added) not also indirectly for brokering a related loan. Thus, in future, the mere pursuit of an indirect economic advantage is unlikely to trigger the licensing requirement for loan intermediation.
• The material scope of the licensing requirement for loan intermediation is restricted to standard consumer credit agreements and financing assistance. The previous licensing requirement for the intermediation of corporate loan agreements (section 34c(1) no. 2 GewO) is thus abolished, as is explicitly stated in the explanatory notes to the legislation.
• As already set out in the earlier draft, the authorisation requirement is waived for traders who carry out relevant activities solely to finance the sale of goods or provision of services they have concluded, and who qualify as micro, small or medium-sized enterprises (section 34k(4) no. 3 GewO).
• For practical purposes, it may be helpful that the explanatory memorandum makes it clear that “recommenders” who merely put potential borrowers in contact with lenders, or refer them to a credit intermediary, are not subject to the authorisation requirement.
• A new feature compared to the earlier draft is that the roles of fee-based credit advisor and credit intermediary are now mutually exclusive (section 34k(5), sentence 2 GewO). The requirement remains that fee-based credit advisors must consider a sufficient number of contracts available on the market for their recommendations, may not accept incentives from the lender, and must not be dependent on the lender in any way (section 34k(5), sentence 1 GewO).
• As previously set out in the draft bill, intermediaries and fee-based credit advisors requiring authorisation will in future be subject to a registration requirement in the intermediary register (section 11a GewO). This requirement also includes the registration of those responsible for management in the intermediary and advisory activities (section 34k(8) GewO).
• With regard to proof of expertise and the obligation for ongoing training, the Act introduces certain facilitations compared to the earlier draft. For the proof of expertise required to obtain authorisation (namely, passing an exam at the Chamber of Industry and Commerce), it is sufficient if such proof is provided for a reasonable number of natural persons employed by the applicant, who are responsible for supervising those directly involved in authorised activities and who have authority to represent the applicant (section 34k(3), sentence 2 GewO). This facilitation also applies to the obligation for ongoing training (section 34k(6), sentence 3 GewO). However, these facilitations do not apply when the trader is a natural person and personally carries out the authorised activities or is responsible for these activities in the management of the business (section 34k(3), sentence 3 GewO and section 34k(6), sentence 4 GewO).
• The transitional arrangements are more generous than those in the earlier draft. Holders of authorisation under section 34c GewO must apply for the new authorisation under section 34k(1) GewO for the intermediation of standard consumer credit agreements and financing assistance by 31 May 2027 at the latest, and must promptly register themselves and any persons to be listed after authorisation is granted (section 162(1) GewO). For these traders, renewed checks on reliability and orderly financial circumstances are generally not required (section 162(2) GewO). If they have been continuously active since 1 January 2021, the requirement for the professional competence exam is also waived, subject to appropriate proof (section 162(3) GewO). If no application for the new authorisation is submitted by 31 May 2027, the existing authorisation will expire on 19 November 2027 at the latest. The deadline of 31 May 2027 also applies to traders who, solely to finance sales of goods or provision of services they have arranged, arrange loan agreements or provide evidence of opportunities to enter into such agreements, and who do not qualify as micro, small or medium-sized enterprises (section 162(4) GewO).

New registration requirement and oversight of point-of-sale financiers

• As already set out in the earlier draft, the Act introduces, with the Act on the Supervision of Consumer Credit in the Context of Point-of-Sale Financing (Gesetz zur Aufsicht über Verbraucherkredite im Rahmen der Absatzfinanzierung ‒ AbsFinAG), supervision of lenders of standard consumer credit agreements and financing assistance within the framework of point-of-sale financing (section 1 AbsFinAG). Under this regime, lenders/point-of-sale financiers are subject to a registration requirement, unless an exemption applies (for example, for micro-enterprises or small and medium-sized enterprises that grant payment deferrals solely for the acquisition of goods or services they offer, and where the deferral is interest-free and provided with limited costs (section 4 AbsFinAG)). Nevertheless, these entities must comply with the regulatory requirements for granting consumer loans and remuneration provisions accordingly (see below).
• For institutions that agree in advance with a lender/point-of-sale financier on the assignment of payment claims against the consumer, and where the contract concluded between the lender/point-of-sale financier and the consumer is structured according to the institution’s specifications, reporting and registration obligations apply (as was already set out in the earlier draft). Such institutions are also required to fulfil the obligations applicable to lenders/point-of-sale financiers (see section 6 AbsFinAG).
• The Act clarifies the question left open in the earlier draft regarding which authority will be responsible for supervising compliance with the provisions of the Consumer Credit Supervision Act. This responsibility is assigned to the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) (section 3(1) AbsFinAG). BaFin will be equipped with extensive powers for effective supervision, modelled on its existing powers under other supervisory laws.
• The Act establishes a set of fines which classifies intentional or negligent breaches of certain provisions of the AbsFinAG as administrative offences which can be punished with fines of up to EUR 500,000 (see section 8 AbsFinAG). Similar to the German Federal Financial Supervisory Authority’s publication powers under other legislation, the Act provides that BaFin will generally publish its measures and fine decisions on its website (section 9 AbsFinAG).
• A transitional period of up to twelve months after the AbsFinAG enters into force is envisaged for registration and notification obligations under that Act (section 10 AbsFinAG).

Stricter requirements for granting consumer loans, credit checks, and requirements for the internal structure of credit institutions

• The Act adopts the proposals from the earlier draft regarding stricter requirements for granting consumer loans, running credit checks, and the internal structure of credit institutions. This means that the requirements for granting standard consumer credit agreements will be aligned with the standards already applicable to consumer loans relating to immovable property.
• In future, standard consumer credit agreements will only be granted following a stricter credit check. The credit check must show it is “likely” the borrower can meet their obligations (previously, “no significant doubts” were sufficient; see section 18a(1) of the German Banking Act (Kreditwesengesetz – KWG)). For loans with multiple borrowers, the creditworthiness must be assessed based on their joint ability to repay (section 18a(1a) KWG). Decisions on the granting of credit must be based on necessary, relevant, and accurate information about the borrower’s income, expenses, and other financial and economic circumstances, with the information requested being proportionate to the nature, term, amount, and risks of the loan for the borrower (section 18a(4) KWG, p. 201 of the government bill). Internal and external sources may be used to obtain this information, but social networks may not (section 18a(3) KWG, p. 201 of the government bill). These changes bring the civil law provisions into alignment.
• Credit institutions will be required to warn borrowers if a consumer credit agreement may pose a specific risk to the borrower, taking into account the borrower’s financial situation (section 18a(1b) KWG).
• The qualification requirements for staff involved in granting consumer loans relating to immovable property are extended to standard consumer credit agreements (section 18a(6) KWG). The same applies to the requirements for risk-appropriate advisory services (section 18a(8) KWG).
• Furthermore, credit institutions must have appropriate strategies and procedures in place to identify borrowers of standard consumer credit agreements who are experiencing financial difficulties at an early stage; they will also be required to refer such borrowers to debt counselling services (section 18a(8c) KWG).
• The changes also include – as already set out in the earlier draft – an amendment to the German Remuneration Ordinance for Institutions (Institutsvergütungsverordnung – InstitutsVergV). Remuneration for employees involved in granting loans and advising clients must not run counter to the aim of acting in the best interests of the borrower (section 5(1) nos. 4 to 5a InstitutsVergV).

Outlook

The Bundestag passed the Act on 17 April 2026. The implementation deadline provided for in Art. 48(1) of the CCD 2023 (20 November 2025) could therefore not be met – as was also the case in other EU Member States. The relevant application date of 20 November 2026 pursuant to Art. 48(2) of the CCD 2023 will nevertheless be met. Regarding financial supervision requirements, the transitional periods will be of particular practical importance: holders of authorisation under section 34c GewO must apply for the new authorisation under section 34k(1) GewO by 31 May 2027 at the latest (section 162 GewO). For registration and notification obligations under the AbsFinAG, a transitional period of up to twelve months after the AbsFinAG enters into force applies, extending to 20 November 2027 (section 10 AbsFinAG). Companies in the real economy as well as financial institutions should review their business models to determine how the upcoming changes will affect their regulatory and civil law obligations, so as to take the necessary steps in good time before 20 November 2026.