Online shopping and in-app purchases are making it easier for consumers to spend more money than they actually have available. Instead of applying for a loan at a bank, products are ordered online without keeping track of outstanding amounts. A new Consumer Credit Law Amendment Act 2026 aims to better protect younger customers in particular from falling into debt, the Justice Ministry said on Wednesday.
“Especially young people often underestimate the total of their installment payments,” Justice Minister Anna Sporrer said. “Phantom debts accumulate in the background and often lead to far-reaching problems for those affected.” The aim is not to ban credit, but to “ensure that digitalization does not come at the expense of transparency.”
Stricter Checks for Digital Credit
Under the new law, even small loans below €200 and “buy now, pay later” models will be subject to the same strict rules as traditional loans. Lenders will be required to carry out more thorough creditworthiness checks, including in cases where decisions are supported by artificial intelligence.
Credit offers must also be presented in a standardized digital format to make them easier to compare. The law is also intended to curb aggressive marketing and misleading advertising, particularly on social media. Overall, the legal framework will be updated to reflect new digital credit products.
EU Rules and Consumer Rights
The legislation will also implement the EU directive on consumer credit agreements. Customers will receive the same level of protection as with a traditional bank loan. They will also have the right to request a human review of any AI-based creditworthiness decision.
In addition, rights such as withdrawal from credit agreements and early repayment will be more clearly defined.
The government bill is set to be presented to the Cabinet, marking the start of the parliamentary approval process. The law is scheduled to take effect on November 20, 2026.
