Consumer Credit

EU rules on consumer credit are designed to strengthen your consumer rights and to help you make an informed choice if you sign up to a credit agreement.
 
Before you sign an agreement, the lender must

• give you standardised information free of charge to make it easy for you to compare offers
• tell you the annual percentage rate of charge (APR) – this tells you the total cost of the credit
• assess your creditworthiness i.e. your ability to pay back the credit in a sustainable way

You can cancel the agreement within 14 days of signing. You can also repay the loan or credit at any time.

• Directive (EU) of the European Parliament and of the Council of 18 October 2023 on credit agreements for consumers and repealing Directive 2008/48/EC
• Directive 2008/48/EC on consumer credit agreements (pdf)
• Directive 2011/90/EU (pdf) annex to Directive 2008/48/EC; sets out rules on calculating the APR

The Consumer Credit Directive was revised in 2023 to ensure comprehensive consumer protection. The new Directive is broader in scope as it also applies to credit agreements whose amount is lower than the former EUR 200 threshold and to so called “Buy now, pay later” schemes.  In order to support consumers with financial difficulties, member states are now obliged to establish debt advisory services.

• New proposal for a Directive on consumer credits repealing and replacing the Consumer Credit Directive (2008/48/EC), 2021
• Annexes to the proposal for a Directive on consumer credits repealing and replacing the Consumer Credit Directive (2008/48/EC), 2021
• Impact Assessment on the Review of the Consumer Credit Directive (2008/48/EC) on credit agreements for consumers, 2021
• Executive Summary of the Impact Assessment on the Review of the Consumer Credit Directive (2008/48/EC) on credit agreements for consumers, 2021
• Regulatory Scrutiny Board Opinion on the Impact Assessment / Review of the Consumer Credit Directive, 2021
• Consumer Credit Review - Factsheet

• Report on implementing the Consumer credit Directive, 2014 (pdf)
• Report on the evaluation of the Consumer Credit Directive, 2020
• Consumer Credit Directive Evaluation Staff Working Document, 2020
• Executive Summary of the Consumer Credit Directive Evaluation Staff Working Document, 2020
• Guidelines on the application of Directive 2008/48/EC (Consumer Credit Directive) in relation to costs and the Annual Percentage Rate of charge, 2012

REFIT Review of the Consumer Credit Directive

• Study on possible impacts of a revision of the Consumer Credit Directive - Final report 2021
• Study on possible impacts of a revision of the Consumer Credit Directive - Annexes to the Final report 2021

REFIT Evaluation of the Consumer Credit Directive

Study conducted on the current legal framework of the Consumer Credit Directive and its fitness for purpose, via an assessment of its effectiveness, efficiency, relevance, coherence, EU added value and potential for simplification and burden reduction.

• Supporting study of the evaluation of Directive 2008/48/EC on credit agreements for consumers

Study on the over-indebtedness of European households

Updated mapping of the situation, nature and causes, effects and initiatives for alleviating its impact.

• Study on European consumers' over-indebtedness and its implications - Final report 2023
• Study on European consumers' over-indebtedness and its implications - Annexes to the Final Report 2023
• Synthesis of findings on the over-indebtedness of European households 2013
• Country reports on the over-indebtedness of European households 2013