The Croatian Parliament has adopted the law on consumer credit. This measure is part of the alignment of the domestic legal framework with European standards, specifically Directive (EU) 2023/2225. The adoption of the law closes the circle of regulatory changes that directly affect the rights of citizens and the operations of credit institutions.
The key change in relation to the previous situation is the consolidation of two separate acts: the law on consumer credit and the law on mortgage credit. The aim of these changes is to create a clearer, more transparent and secure framework for all participants in the market. By introducing these changes, the legislator aims to ensure a higher degree of security and fairness in the relationship between credit institutions and their clients.
The law introduces a number of changes in the way credit business is regulated. Special attention is paid to the enhanced supervision of credit, as well as stricter supervision of the costs associated with these credits. In addition to financial aspects, the law introduces restrictions on certain sales practices. This is intended to prevent inappropriate sales of credit products in the market.
It is important to highlight the expansion of the rights of citizens in the transfer of credit. This allows citizens a greater degree of control and flexibility in managing their obligations. In addition to these structural changes, the law introduces specific provisions regarding the protection of debtors. In particular, it is highlighted that protective measures for debtors who are having difficulty repaying their loans will be applied without delay. In this way, the social impact of credit obligations on the most vulnerable categories of citizens is mitigated.
The law also defines transitional provisions. These are crucial for legal certainty in the transition from the previous to the new legal regime. Provisions adopted before 20 August apply to credit contracts concluded before that date. This ensures legal certainty for all participants in existing contracts, preventing legal uncertainties and disputes arising from the application of new, stricter standards to previously concluded contracts.
