On 9 October 2023, the European Council adopted the revised Consumer Credit Directive (CCD II).

The CCD II repeals and replaces the current 2008 directive in consumer credit agreements. In particular, the CCD II aims to ‘promote responsible and transparent practices by all players involved in consumer credit,’ and promotes responsible and transparent practices by all players involved in consumer credit, for example by ensuring that credit information is presented in a clear and understandable way and is adapted to digital devices.

Among other things the Council press release notes that to keep up with the trend of digitalisation, the EU’s credit rules will now also apply to certain risky loans that were excluded from the scope of the 2008 directive. This includes:

• Loans below €200.
• Loans offered through crowd-lending platforms.
• Buy-now-pay-later products.

Following the Council’s approval of the provisional agreement, the CCD II has been adopted.

After being signed by the President of the European Parliament and the President of the Council, the CCD II will be published in the Official Journal of the European Union and will enter into force on the twentieth day following its publication. Once the CCD II comes into force, Member States have 24 months in which to adopt and publish laws, regulations and administrative provisions necessary to comply with the directive. They will then apply those measures from twelve months from this transposition deadline.