Austria to implement stricter consumer credit rules from November 20

Starting November 20, new regulations will significantly tighten rules for consumer credit in Austria, implementing an EU-wide directive through the Consumer Credit Law Amendment Act. Banks and retailers will be required to conduct stricter creditworthiness assessments, even for microloans under 200 euros, interest-free credits, and ‘Buy Now, Pay Later’ financing models.

The new measures aim to enhance consumer protection by introducing stricter information requirements, monitoring of payment arrears, and limitations on advertising and tied transactions. While these changes present new challenges for retailers, certain exceptions remain for online commerce. For instance, if a payment term of up to 14 days is offered directly by the supplier without an intermediary payment service provider, and the purchase is interest- and fee-free, the stricter requirements do not apply. Additionally, the permitted payment period for small and medium-sized enterprises (SMEs) will increase to 50 days.