Lithuania to implement stricter credit checks for smartphone installments

New European Union consumer credit directive provisions will take effect in Lithuania on November 20, fundamentally changing how smartphones and communication equipment are purchased via installments.

Previously, telecommunications companies could bypass strict creditworthiness assessments for interest-free contracts without additional fees. Under the new regulations, all installment purchases, including interest-free options, will be treated as consumer credit. Sellers will be required to conduct comprehensive checks, evaluating a buyer's income and all existing financial obligations.

Giedrius Senkus, Director of Purchasing and Wholesale Products at Bitė Lietuva, noted that while 70% of phones at the company are currently purchased through installments, the new rules may limit options for some consumers. While installment plans will remain available, individuals with significant existing financial commitments may find it harder to qualify for expensive or latest-model devices, potentially forcing them to choose more affordable alternatives.