Ratenkaufgesetz

The Ratenkaufgesetz, abbreviated as RkG, was a German federal law that governed installment purchase agreements between consumers and merchants. It established a regulatory framework for financing consumer purchases on credit, with the aim of protecting buyers and promoting fair dealing in retail financing.

Scope and provisions

The act applied to agreements in which a consumer paid for goods or services in installments rather than in a single lump sum. It imposed obligations on sellers to disclose essential contract terms, including the total price, down payment (if any), repayment schedule, and the applicable costs or interest rate. The law sought to ensure transparency in pricing and financing terms and to prevent unfair or abusive contractual clauses. It also addressed form requirements, information duties, and certain protections for consumers in the event of disputes or misrepresentation.

Consumer protections and remedies

Under the RkG, consumers could have remedies for inadequate disclosures or unfair terms, and there were provisions related to cancellation or adjustment of terms in specific circumstances. The act also established mechanisms for enforcing protections, with authorities and courts empowered to oversee compliance and handle disputes between buyers and sellers.

Status and evolution

In the late 20th and early 21st centuries, the Ratenkaufgesetz was largely superseded or integrated into broader German consumer credit and civil law. Modern regulation of installment purchases in Germany is primarily governed by the German Civil Code (BGB) and subsequent consumer credit legislation, influenced by EU directives, which standardize disclosure and consumer protections for credit-based retail sales.

See also

Verbraucherkreditgesetz, BGB, Konsumentenschutz.