The Croatian Parliament has adopted a law on consumer credit. This measure is part of a broader alignment of the domestic legal framework with EU standards, specifically Directive (EU) 2023/2225. The enactment of the law completes a cycle 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 previously separate acts: the Consumer Credit Act and the Mortgage Act. The aim of these changes is to create a clearer, more transparent, and safer framework for all participants in the market. By introducing these changes, the legislature 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 is regulated. Special attention is paid to the enhanced oversight of credit, as well as the stricter oversight of the costs associated with these loans. In addition to financial aspects, the law introduces restrictions on certain sales practices. This is intended to prevent inappropriate sales practices 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. It is particularly noted that protective measures for debtors facing difficulties in 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 during the transition from the previous to the new legal regime. Provisions applicable to loans contracted before 20 November have been adopted. 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.
