1. Introduction to Directive (CCD2)

The second EU Consumer Credit Directive (CCD2) – Directive (EU) 2023/2225 – fundamentally changes the regulatory framework for consumer credit in Europe. Adopted on October 18, 2023, and published in the EU Official Journal on October 30, 2023[1], it will replace the previous directive from 2008. Member States must transpose CCD2 into national law by November 20, 2025, at the latest; the new rules will apply from November 20, 2026[2]. The aim of the reform is to adapt the credit market to digital developments and significantly strengthen consumer protection[2]. New, previously unregulated forms of credit – such as microloans, interest-free or fee-free purchases, and buy now, pay later (BNPL) – will now be covered[3][4]. The rules on transparency, advertising, and creditworthiness checks will be tightened to ensure responsible lending.

In Germany, the directive is being implemented through amendments to, among other things, the Civil Code (BGB), the Introductory Act to the Civil Code (EGBGB), the Banking Act (KWG), and the Trade Regulation Act (GewO)[5]. The Federal Ministry of Justice presented a draft bill in June 2025, followed by a government draft in September 2025[6]. The latter incorporates most of the proposals and adds detailed provisions, e.g., on supervision[6]. The competent supervisory authorities will be, in particular, the Federal Financial Supervisory Authority (BaFin) for credit institutions and – for credit intermediaries and certain financing providers – the trade offices due to new licensing requirements (GewO §34c)[7][8]. Many of the basic principles of CCD2 are based on the EBA guidelines on lending and monitoring (EBA/GL/2020/06), which have been incorporated into supervisory law in Germany since 2021 via MaRisk. For lenders, the reform represents a paradigm shift: it is no longer sufficient to superficially check the customer's solvency – a comprehensible, objective creditworthiness assessment carried out in the interest of the consumer is mandatory. All relevant information must be taken into account and the decision documented.

Every credit decision must be based on relevant, accurate, and proportionate information that is appropriate to the nature, amount, and risk of the credit[12]. In particular, CCD2 requires a comprehensive assessment of the consumer's financial circumstances. The German implementing provisions (Sections 505a and 505b BGB, as amended) require three key categories of data to be included in the assessment[13]: