Strengthening Consumer Protection in Credit Agreements in Germany: Changes in November 2025

Since 20 November 2025, new rules implementing EU Directive 2023/2225 on consumer credit agreements have come into force in Germany. The aim is to increase transparency in credit conditions and protect borrowers’ rights.

Why it matters

Banks and financial companies must now:

• provide complete information on interest rates, fees, and repayment terms;
• assess clients’ creditworthiness more thoroughly;
• ensure borrowers have access to fair dispute resolution mechanisms.

What changes for companies

1. Standardized information: uniform disclosure forms for credit conditions.
2. Creditworthiness assessment: new requirements for analyzing income and expenses.
3. Access to legal remedies: simplified procedures for disputes with lenders.

Practical recommendations

• Review internal credit processes and KYC procedures.
• Update contract templates and disclosure documents.
• Train staff on new creditworthiness assessment standards.
• Provide clients with clear guidance on rights and complaint procedures.

Conclusion

The new rules enhance consumer protection and create a more transparent credit market in Germany. Companies that adapt their processes promptly reduce risks and build trust with clients.