Draft Amendment to the Consumer Credit Act

Finance Minister Alena Schillerová has presented a draft amendment that transposes the requirements of the European Consumer Credit Directive. The objective is to establish clear and fair rules that protect consumers from disproportionately expensive loans.

The European Union required member states to implement an interest rate cap. The proposed amendment introduces a cap based on established case law, set at three times the average bank interest rates.

Another key change is the increased emphasis on creditworthiness assessments. If a lender provides a loan to an individual who is clearly unable to repay it, a sanction is triggered: the lender forfeits the right to interest and fees. In such a scenario, the debtor is required to repay only the principal amount (the original sum borrowed).

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