The previous written form requirement is being replaced by the text form for general consumer loan agreements and loan brokerage agreements. This enables fully digitized processes, eliminates media disruptions, and leads to a noticeable reduction in bureaucratic costs for the economy. However, mortgage credit agreements will remain subject to formal requirements (written form, replaceable by electronic form).

Pre-selected options that constitute the borrower's declaration of intent to conclude a general consumer loan agreement or purchase additional services are expressly prohibited.

Advertising for credit products requires a clear and prominent warning about the costs ("Caution! Borrowing money costs money" or an equivalent phrase). Furthermore, certain misleading and aggressive advertising statements are prohibited. These include suggesting financial improvement through a loan, claiming that existing credit agreements or credit bureau records have little or no impact on the assessment of a credit application, or falsely suggesting that a loan would increase financial resources, replace savings, or raise the standard of living. Aggressive advertising practices, such as offering discounts conditional on taking out a loan or offering grace periods for repayments of more than three months, are also forbidden.

Pre-contractual information must be provided on paper or on a common durable medium chosen by the consumer (e.g., email, digital postbox). The consumer's right to choose extends to the entire provision, meaning they can also opt for paper form.

For "Buy Now, Pay Later" (BNPL) models, a narrowly defined exception from consumer credit law is provided to continue excluding certain purchases on account. This exception applies if the merchant themselves grants an interest-free and charge-free deferral of payment for a maximum of 50 days after delivery of the goods, and the consumer bears only limited costs in case of late payment. For larger online suppliers of goods or services (who do not qualify as micro, small, or medium-sized enterprises and who offer information society services), the exception is narrower: payment must be made in full within a maximum of 14 days, and no third party may acquire the claim for payment against the consumer from the contract. This clarification is a direct response to the need to regulate BNPL models and prevent circumvention of consumer protection.

The scope of creditworthiness assessment is being expanded and the requirements are being tightened. In the case of automated processing of personal data, the borrower has a comprehensive right to human intervention. The use of special categories of personal data (according to Article 9(1) GDPR, e.g., on origin or worldview) and data from social networks for general consumer loans is prohibited. Furthermore, banking supervision guidelines require that the information used for the creditworthiness assessment must always be "relevant and accurate."

The so-called "right to be forgotten" will be implemented in the Insurance Contract Act. Personal data concerning the diagnosis of oncological diseases may no longer be used for the purposes of an insurance policy related to a credit agreement after a period of 15 years following the end of medical treatment.

Most changes will come into force on November 20, 2026. Individual regulations in the Trade Regulation Act (GewO) for loan intermediaries, such as the introduction of a separate trade law permit requirement and transitional rules for registration, will already take effect on January 1, 2026.

The Directive now generally also covers interest-free general consumer loans, loans with a net amount of less than 200 euros, and general consumer loan agreements that are repayable within three months and involve only minor costs.

A so-called "perpetual right of withdrawal" will be avoided in the future. Regardless of when the withdrawal period begins, the right of withdrawal for general consumer loan agreements will expire no later than twelve months and 14 days after the conclusion of the contract. The consumer has the right to choose a durable medium for their declaration of withdrawal.

Lenders are obliged to refer borrowers who experience financial difficulties to easily accessible debt advisory services. They must also exercise reasonable forbearance before initiating enforcement proceedings. This may include modifying the terms of the loan agreement (e.g., extending the term, changing the type of loan, deferring payment, reducing the borrowing rate, interrupting payments, making partial repayments, currency conversions, partial remission, debt consolidation).

Tying practices, where the conclusion of a loan agreement is made conditional on the purchase of other financial products or services, are generally prohibited. Exceptions exist, for example, for home loan savings contracts to continue allowing the tying of home loans and home loan savings contracts.

A right to non-discriminatory granting of general consumer loans is introduced, based on Article 21 of the Charter of Fundamental Rights of the European Union (e.g., no discrimination based on nationality, place of residence, sex, race, etc.).

The Directive sets new requirements for the knowledge and skills of staff involved in loan granting and advisory services, and requires regular training.

A new root law for the supervision of consumer credit in the context of sales financing (AbsFinAG) will be created. This is to ensure that suppliers of goods or services who offer sales-financing payment deferrals are also subject to supervision. Lenders and credit intermediaries will be subject to a registration requirement.