The adoption of the second Consumer Credit Directive (EU) 2023/2225 (CCD2) marks a substantial overhaul of the European framework for consumer credit agreements. In an environment where the digitalisation of financial services, fintech platforms and ‘buy now – pay later’ (BNPL) models are rapidly expanding, CCD2 seeks to protect consumers more effectively and ensure a level playing field for all credit providers. The new Directive, which repeals Directive 2008/48/EC (CCD1), broadens its scope, enhances consumer information, brings greater transparency in credit information and imposes stricter credit rating requirements, creating a more mature and coherent regulatory framework.
Expanded scope in line with the changing digital landscape
CCD2 covers a much wider range of products than CCD1. Specifically, in addition to traditional consumer loans, the following are now included:
• Credit agreements up to €100,000, (under CCD1 there was a range between €200 and €75,000);
• Unsecured loans above €100,000 for residential renovation, and interest-free/charge-free credit products;
• Crowdfunding credit services: Digital platforms matching lenders (professional or not) with consumers. Applies when platforms act as creditors or intermediaries;
• BNPL (‘Buy now, pay later’) products;
• Narrow deferred-payment exemption: Applies only to supplier-led arrangements that are interest-free, free of charges (other than late-payment fees), and fully repayable within 50 days. Not available, though, for certain major e-commerce retailers, who may face new licensing/authorisation obligations.
Strengthening consumer protection
➤ Provision of mandatory (pre-contractual) information
Creditors, credit intermediaries (or crowdfunding service providers) are required to provide consumers with personalised pre-contractual information, which must be provided in a timely manner prior to the conclusion of the credit agreement. Information on interest rates, total credit costs, late payment penalties, and other terms must be presented in a way that allows consumers to fully understand the implications of the contract. While the consumer retains the 14-day withdrawal right (without penalty or justification), creditors must remind consumers of their rights of withdrawal if the pre-contractual information is provided less than one day before the conclusion of the credit agreement.
➤ Creditworthiness assessment
Creditors must carry out a thorough assessment of the consumer’s creditworthiness before concluding the credit agreement. In fact, in CCD2, there are specific references to conducting assessments in the interest of the consumer and to prevent irresponsible lending practices and over-indebtedness.
➤ Enforcement
CCD2 requires creditors to proactively address emerging credit risk at an early stage. To this respect creditors shall take the necessary measures to ensure that they exercise reasonable tolerance and make reasonable efforts to resolve the situation by other means before starting enforcement proceedings. For example, such measures may include refinancing a credit agreement (in whole or in part), extending the maturity or changing the type of credit. Also, creditors must refer clients in financial difficulties to debt counselling services.
➤ Regulation of certain practices and advertisements
Practices that exploit consumer behaviour, such as product bundling, pre-selected boxes, and unsolicited credit sales, are now regulated. Advertisements for consumer loans must include clear and conspicuous details of costs, while certain advertisements, such as those encouraging consumers to take out a loan, are prohibited.
Between transposition and application
The original deadline for the transposition of CCD2 is 20 November 2025, however, most EU Member States, including Greece, appear to be behind this deadline. The Directive will become generally applicable exactly one year later, on 20 November 2026.
Our law firm closely monitors CCD2 transposition into Greek legislation and provides tailored support to navigate through the upcoming changes.
Authored by Natassa Kollia and Andreas Tsoufis