Germany tightens consumer credit rules to curb debt

The German Bundestag has passed new credit regulations that tighten oversight of consumer lending, including the Buy now, pay later mechanism. The measures are described as strengthening protections for borrowers and helping people avoid debt.

Officials say the changes will affect millions of people, particularly younger borrowers who have accumulated debt through the 'Buy now, pay later' method, which is increasingly offered during online shopping. The reforms apply to both BNPL and standard loans, aiming to improve consumer protection.