The Bundesrat approved the new Verbraucherkreditgesetz (consumer credit law) on May 8, 2026. The law implements EU Directive 2023/2225 on consumer credit agreements. Most provisions come into force on November 20, 2026.
What changed and why it matters for you
Germany’s existing consumer credit rules had a gap. Buy-now-pay-later (BNPL) services, credits under €200, and interest- or fee-free credits were excluded from the full protections of consumer credit law. Providers of these products did not have to carry out a creditworthiness check before lending. From November 20, 2026, that changes.
The reform expands the scope of the Verbraucherkreditgesetz to cover:
- Buy-now-pay-later (BNPL) products — services like Klarna, PayPal Pay Later, and similar deferred-payment options
- Microloans under €200 — previously excluded entirely
- Interest- and fee-free credits — zero-percent offers from retailers and online shops
- Selected leasing contracts with a purchase option
The upper credit limit covered by the law rises from €75,000 to €100,000.
Stricter creditworthiness checks
Lenders must now carry out a creditworthiness check (Bonitätsprüfung) before approving any credit covered by the law. The check must be proportionate to the loan size. Small credits require a reduced but documented assessment. For larger credits, lenders must carry out a full check.
A lender cannot disburse a loan if the creditworthiness check produces a negative result.
The law also prohibits lenders from using social media data to assess your creditworthiness. This applies to all covered credit products.
NOTE: Bundling a credit with another product, for example, linking a loan approval to buying a specific insurance policy is prohibited. Linking credit to a savings account is allowed under certain conditions.
What does this mean if you use BNPL services in Germany
If you use BNPL services for online purchases, the following changes apply.
- You’ll be asked to provide financial information before approval from November 2026.
- BNPL providers must treat your application as a consumer credit application under § 491 BGB (German Civil Code).
- You gain the same rights as with any other consumer loan. This is
- A right to information
- A 14-day right of withdrawal
- Protection against aggressive lending.
NOTE: The law was passed by the Bundesrat on May 8, 2026. It still needs to be published in the Bundesgesetzblatt before November 20, 2026 to take effect as scheduled. Publication is expected to follow shortly.
