On 17 April 2026 the Bundestag passed a law that brings EU Directive 2023/2225 on consumer credit agreements into German law (1)(2). The new rules for consumer credit apply from 20 November 2026 (3)(4). Here is what changes according to official sources.
Warning! Borrowing money costs money.
More types of credit are covered
Consumer protection rules will also cover small loans of up to 200 euros, loans without interest or fees, loans with a term of up to three months and “buy now, pay later” models (2). Until now such financing was partly exempt; in those cases there was no creditworthiness check either (3). Debit cards with deferred payment remain exempt (2).
What else changes
- Lenders have to give you more information before you sign (2).
- For general consumer loans (Allgemein-Verbraucherdarlehen), text form (Textform) will be enough (2).
- If the information you were given was incorrect, the withdrawal period (Widerruf) is twelve months and 14 days at most. An unlimited right of withdrawal will no longer exist (2).
- If the creditworthiness check is based on automated data processing, you have the right to have it reviewed by a human (2).
- Advertising for credit must carry a clear warning, for example “Achtung! Kreditaufnahme kostet Geld” (4).
What you can keep in mind already
BaFin, the German financial supervisor, points out that “buy now, pay later” is also credit: you take on debt that has to be repaid (3). In a BaFin survey from April 2025, 14 percent of users said they had lost track of their open bills at least once (3). BaFin advises looking at the total amount, counting open instalments from other financing and comparing the annual percentage rate (effektiver Jahreszins) and the term of offers (3).
More: Guide: how to compare consumer loan offers. We do not give advice and do not recommend any provider; the decision is yours.
Sources (checked on 11 October 2026)
- Deutscher Bundestag – Bundestag beschließt Gesetz zu Verbraucherkrediten und E-Auto-Förderung (17.04.2026)
- Bundesregierung – Besserer Verbraucherschutz bei Kreditverträgen (19.05.2026)
- BaFin – Buy now, pay later
- Deutscher Bundestag – Drucksache 21/5381, Beschlussempfehlung des Rechtsausschusses (15.04.2026)