Croatia Passes New Consumer Credit Law Limiting Loans and Installments

Effective from November, Croatia's new Consumer Credit Law tightens rules for banks and telecom operators. The legislation requires borrowers to transfer their salary to the lending bank, bans banks from increasing overdraft limits without explicit consent, and subjects installment sales of mobile phones to the same credit‑worthiness checks as bank loans.

Finance Minister Tomislav Ćorić said the law’s “fundamental goal … is to further strengthen consumer protection, responsible lending and market transparency.” Financial analyst Petra Posedel Šimović added that the reforms will reduce confusing fine print and place greater responsibility on lenders. The Financial Agency (Fina) will also offer free counseling for over‑indebted consumers.

The changes aim to make credit more transparent and protect households, though critics warn that loans may become less accessible for average earners.