The Consumer Credit Act Amendment Act of 2026 (VerKRÄG 2026) was passed by the Austrian National Council in May 2026. The law will take effect on November 20, 2026.

What does the Austrian Consumer Credit Act regulate?

The Austrian Consumer Credit Act (VKrG) governs loans and other forms of financing that businesses provide to consumers. It was enacted to implement the former EU Consumer Credit Directive 2008/48/EC. The purpose of consumer credit law is to better inform consumers before and during a credit agreement and to establish certain protective rules for credit agreements.

The various national regulations are currently undergoing significant changes as a result of the EU Consumer Credit Directive 2023/2225. This directive was published in the Official Journal of the EU on October 30, 2023, and had to be implemented by November 20, 2025. The directive is fully harmonizing, meaning that Austria may not, in principle, establish any deviating national rules in the regulated areas—not even in favor of consumers.

What are the most important changes?

The most significant change is the substantial expansion of the scope of application. In the future, many interest- and fee-free financing arrangements will also be covered, such as certain “Buy Now, Pay Later” models in which consumers receive goods or services immediately and pay for them later. As a result, new providers—particularly in online retail—may fall more heavily under consumer credit law.

The rules are also becoming stricter regarding the duty to provide information to consumers before a credit agreement is concluded. The directive expands the information requirements in advertising and prior to the conclusion of a contract and mandates, among other things, clearer standard information and warning notices. In addition, consumers will in the future be able to receive information more frequently on paper or on another durable medium of their choice.

Further changes pertain to creditworthiness assessments. Under the new directive, loans may only be granted if the assessment shows that the consumer is likely to be able to meet their obligations under the credit agreement. This brings consumer credit law more in line with rules already in place for residential mortgage lending.

The new directive also takes greater account of increasing digitalization. It contains rules for loans offered digitally and for the presentation of information on technical devices such as smartphones. Preset options—such as pre-checked boxes when concluding a contract digitally—shall not be deemed to constitute the consumer’s consent.

Other changes include, among other things, a prohibition on discrimination in lending, rules against excessively high credit costs, and changes regarding overdraft facilities and overdrafts. In the event of early repayment, the consumer should continue to receive a reduction in the total cost of the credit for the remaining term, although the new directive seeks to more clearly address the issues arising from European Court of Justice (ECJ) case law. Finally, advertising for credit products will also be more strictly regulated. In the future, clear warning labels must be provided—similar to those on tobacco products—aimed at making consumers aware that taking out a loan also costs money.

Conclusion

The Consumer Credit Act is intended to protect consumers when taking out loans by ensuring transparency, information, and responsible lending. Under the new EU directive, this protection will be extended to more forms of financing in the future, particularly interest-free payment deferrals and digital “Buy Now, Pay Later” models. For banks, payment service providers, merchants, and online providers, this is expected to result in more legal obligations and a greater need for adaptation.