New EU Consumer Credit Directive published

On 30 October 2023 Directive (EU) 2023/2225 (CCD II) was officially published in the Official Journal of the EU.1 CCD II has been necessitated by rapid technological development in the consumer credit market and new forms of consumer credit emerging since Directive 2008/48/EC (CCD I) was published in 2008.

What are the main changes?

  • Extended scope of application:
    • expands the scope by including credit agreements up to €100 000 (from €75 000) (Art 2 (2)(c));
    • no longer exempts credit agreements with a value of less than €200. Instead member states have the option to not apply certain requirements of CCD II to such credits (Art 2(8));
    • “Buy now pay later” (BNPL) provided by third-party lenders is included in the scope of CCD II (Recital 16). However if the seller itself offers payment in instalments or similar forms of credit CCD II will...