EU consumer credit regulation in Baltic states

In response to EU Directive 2023/2225, Lithuania and Latvia are implementing new regulations for installment and deferred payment services, effective November 20.

In Lithuania, new provisions will change how smartphones and communication equipment are purchased. Previously, telecommunications companies could bypass strict creditworthiness assessments for interest-free contracts. Under the new rules, all installment purchases will be treated as consumer credit, requiring sellers to conduct comprehensive checks of a buyer’s income and existing financial obligations. Industry representatives noted that while installment plans will remain, these rules may limit access to expensive or latest-model devices for consumers with significant existing financial commitments.

Similarly, Latvia is expanding consumer protection by classifying deferred payment services—such as purchasing mobile phones, computers, or routers—under broader consumer credit regulations. Service providers must assess a consumer’s ability to meet financial obligations before entering agreements. To maintain accessibility to digital tools, the Latvian Ministry of Economics proposed simplified assessment procedures for small-scale payments, potentially utilizing credit scoring instead of full income analysis. Additionally, large remote service providers will face new registration requirements with the Consumer Rights Protection Centre. Exceptions to these stricter requirements apply if the full amount is paid within 50 days of delivery, or within 14 days for certain remote contracts.