Consumer rights
Build servicing pathways around the rights attached to a product and jurisdiction.
Consumer Rights Under Credit Agreements
Consumer rights under credit agreements include withdrawal, full or partial early repayment, protections when interest rates change or creditor rights are assigned, and remedies for certain linked credit transactions. The precise scope and procedure depend on national law and the agreement. Revised CCD2 national rules generally apply from 20 November 2026.
Right of Withdrawal From a Consumer Credit Agreement
Under the EU consumer-credit framework, a consumer generally has 14 calendar days to withdraw from a covered credit agreement without giving a reason. The right concerns the credit agreement, not automatically the purchase financed by it. The relevant national law and product scope must be checked.
How the 14-Day Credit Withdrawal Period Works
For credit agreements within Article 14 of Directive 2008/48/EC, the 14-calendar-day period runs from conclusion of the agreement or, if later, receipt of the contractual terms and required information. Timely dispatch of a qualifying notice is central; subsequent repayment has its own 30-day deadline.
What Happens After a Consumer Withdraws From Credit?
After a valid withdrawal from a covered EU consumer credit agreement, the consumer generally repays principal and interest accrued for the period the money was used, without undue delay and no later than 30 calendar days after dispatching the notice. The creditor cannot ordinarily impose a separate withdrawal penalty.
Consumer Rights to Early Repayment
Under Article 16 of Directive 2008/48/EC, a consumer with a covered agreement may repay all or part of the credit ahead of schedule and obtain a reduction in the total cost of credit for the remaining term. Compensation may be permitted only subject to safeguards. The applicable national implementing law controls the practical outcome.
Early-Repayment Compensation Explained
Under Article 16 of Directive 2008/48/EC, compensation for early repayment is confined to specified circumstances, including a fixed borrowing-rate period, direct costs and maximum limits. The ordinary cap is 1% of the early-repaid amount where more than one year remains or 0.5% otherwise, subject to the Directive’s exceptions and national implementation.
Partial Early Repayment of Consumer Credit
Article 16 of Directive 2008/48/EC covers partial as well as full early repayment of a consumer credit agreement within scope. A partial repayment reduces the obligation before its scheduled date and can reduce the remaining cost of credit. The resulting instalments or term depend on the agreement and applicable national law.
Consumer Rights When Credit Terms Change
Under existing EU consumer-credit law, Article 11 of Directive 2008/48/EC regulates advance information about changes in borrowing rates. Other amendments depend on contract and national law. Article 22 of CCD2 introduces more comprehensive prior information about contract modifications through national measures scheduled to apply on 20 November 2026.
Consumer Rights When Credit Is Assigned
Under Article 17 of Directive 2008/48/EC, assignment of a covered credit agreement generally preserves defences against the assignee that were available against the original creditor, including set-off where national law permits. The consumer must normally be informed of the assignment unless the original creditor continues to service the credit by agreement.
Linked Credit Agreements and Consumer Rights
A linked credit agreement finances specified goods or services and forms a commercial unit with their supply. Article 15 of Directive 2008/48/EC protects consumers following qualifying withdrawal from the supply contract and provides for remedies against the creditor in certain non-supply or non-conformity cases, subject to national law.
Credit Agreements Linked to Goods and Services
A consumer who buys a product using credit may have one commercial transaction but two contractual relationships: the purchase with the supplier and the credit agreement with the creditor. The financing can be offered at checkout, through a retailer's broker arrangement, or in a separate lender journey.
Consumer Rights Following Credit Rejection
A creditor may decline to enter into a consumer credit agreement following its underwriting assessment, subject to applicable law. Consumer rights after rejection principally concern information, data use and fair treatment rather than an automatic entitlement to finance.
Consumer Rights in Digital Lending
A credit agreement arranged through an app, embedded checkout, or website may be subject to the same consumer-credit protections as an offline arrangement. The exact requirements depend on the product, parties, governing jurisdiction and legal scope.
Consumer Rights Under BNPL Agreements
BNPL describes a payment experience, not a single legal product. A checkout arrangement may involve an independent credit provider, the seller allowing payment later, or another financing structure.
Information Rights During a Credit Agreement
Signing a consumer credit agreement does not end the creditor's information duties. The applicable duties vary by product and law.
Complaint Rights Under Consumer Credit Rules
A borrower may challenge a credit charge, withdrawal calculation, decision communication, debt collection action or failure to deliver required information. The creditor should distinguish a service query, a formal complaint, a legal claim and a request to exercise a separate statutory right.
Consumer Credit Rights Compliance Checklist
A consumer credit rights compliance review should map each product and jurisdiction, test withdrawal and early repayment, inspect changes and assignment, assess linked credit and BNPL, and verify information and complaint processes against current national law. CCD2 readiness must be assessed separately for the national rules generally applicable from 20 November 2026.
Put the topic in context.
Choose a jurisdiction before applying a rule. Use the sources attached to each guide and record unresolved product questions.