Verbraucherkreditrichtlinie

Verbraucherkreditrichtlinie, in English the Consumer Credit Directive (Directive 2008/48/EC), is a European Union directive adopted in 2008 to harmonise the rules governing credit agreements with consumers. Its aim is to improve transparency, enable easier comparison of offers, and strengthen consumer protection in lending across member states.

The directive applies to consumer credit agreements concluded between a creditor and a consumer within the EU, including personal loans, overdrafts, and credit cards. It generally covers credit arrangements up to a specified amount and is designed for agreements concluded with individuals rather than businesses. It does not replace all national rules but requires transposition into national law, with some differences in implementation across countries.

Key provisions require clear pre-contractual information and a standardised overview of the credit, including the total cost of credit, the annual percentage rate of charge (APR), the main terms, and the repayment schedule. Consumers typically have a right of withdrawal (cooling-off) within a defined period, commonly 14 days. Creditors must perform a creditworthiness assessment before entering into a contract and must avoid misleading or aggressive advertising. The directive also addresses terms related to variable rates, penalties for late or early repayment, and the obligation to provide a copy of the contract and essential information to the borrower.

Implementation and enforcement are carried out by national authorities under the umbrella of EU law. The Verbraucherkreditrichtlinie has shaped national consumer lending regimes by promoting greater transparency, consistency, and consumer protection in cross-border and domestic credit markets. See also Directive 2008/48/EC.