Good for consumers – The rating

As of today, a new directive comes into force in Europe that provides consumers with more comprehensive information about credit. This policy aims to provide transparent and easy-to-understand information about credit conditions, in particular the costs associated with taking out a loan. Another focus of the directive is on stricter rules for credit advertising. This is intended to protect lower-income households in particular from falling into a debt trap.

The new rules apply to loans of up to 100,000 euros. They include both traditional loans such as installment loans and mortgage loans as well as newer forms of lending such as. B. Buy now pay later offers.

The directive provides for the following concrete measures:

Lenders must provide consumers with comprehensive information about all relevant aspects of the loan before taking out a loan. This includes the amount of interest, the term of the loan, the amount of the monthly installments and all other costs associated with taking out the loan.
Loan advertising must clearly state that taking out a loan costs money. In addition, loan offers must not be aimed at people who are unable to repay the loan due to their financial situation.

The EU member states now have two years to incorporate these requirements into their national law. These measures are an important step towards strengthening consumers’ financial security and increasing transparency in the credit system.

What can be better?

The new rules could help consumers make better decisions about taking out a loan. This gives you more information and allows you to better assess the costs and risks of a loan.
The stricter rules for credit advertising could mean that fewer people fall into a debt trap. Consumers will be less likely to take out loans if they are aware of the risks involved.

Conclusion:

The new directive is an important step towards improving consumer protection in the credit sector. It will help consumers make better-informed decisions about taking out a loan.