Council of the European Union has adopted the Consumer Credit Directive (#CCD2)

On 9 October 2023, the Council of the European Union adopted the Consumer Credit Directive, which is to increase the protection of European consumers applying for credit. The new regulation supersedes Directive 2008/48/EC on credit agreements for consumers (CCD1) and changes the rules for granting loans.

The major changes introduces by the new Directive:

  • credit information, e.g. information about the total cost of credit, is to be presented in a clear and comprehensible form adapted for digital devices
  • there are to be stricter rules restricting unfair credit practices towards over-indebted consumers and ensuring effective measures against excessive charges
  • lenders will have to assess whether consumers can repay credit in order to protect them from over-indebtedness.

The CCD2 is also to cover BNPL services, which in general provide for no charges. 

After the Directive is signed by the President of the European Parliament and the President of the Council, it will be published in the Official Journal of the European Union and enter into force 20 days after the publication.