The changes introduced by the amendment to the Consumer Credit Act reflect the current trend of strengthening consumer protection. The proposed wording emphasises ensuring that consumers always have enough time and space to make a free, and above all, informed decision about whether, and in what form, to enter into a credit agreement.

From the effective date of the amendment, the provider MUST NOT:
❌ use pre-ticked boxes in the credit process
❌ pre-set credit parameters
❌ conclude a credit agreement or a contract for an ancillary service without the consumer's consent
❌ provide or increase a credit limit (credit card, overdraft) without the consumer's knowledge

From the effective date of the amendment, the provider MUST:
✔️ allow the consumer to choose the form of a "durable medium" (paper vs. another commonly used durable data medium)
✔️ in certain cases, record the consumer's choice in the credit agreement

The consumer will therefore be the one to decide whether specific communication takes place in paper form or electronically. The law precisely specifies the purposes for which the consumer must make this choice, and if they choose "another durable data medium", it must be a commonly used and standard medium.

The provider must respect the consumer's choice, for example in the following situations:
☝ providing pre-contractual information
☝ reminding the consumer of the right to withdraw from the contract
☝ sending regular monthly statements for consumer credits of indefinite duration or in the form of overdrafts
☝ informing about changes to the obligations under the credit agreement

The consumer should likewise use their chosen form when exercising the right to withdraw from or terminate the credit agreement.

Author: Petra Bernklau