Croatia has adopted a new Consumer Credit Act, introducing stricter rules for lending and stronger consumer protection while aligning national legislation with the European Union’s latest Consumer Credit Directive (CCD2). Authorities, however, have stressed that one of the country’s most popular payment methods—interest-free instalment purchases by bank card—will remain unchanged despite widespread public confusion.
The new legislation, approved by the Croatian Parliament, expands consumer protection by introducing stricter creditworthiness assessments, more transparent advertising rules and clearer pre-contractual information for borrowers. It also extends regulation to certain forms of financing that were previously outside the scope of consumer credit legislation, including some interest-free credit products.
Following media reports suggesting that instalment purchases with debit and credit cards could be restricted, Croatia’s Ministry of Finance issued a clarification stating that consumers will continue to be able to shop in instalments exactly as they do today.
The ministry described some public reporting as inaccurate and confirmed that the law does not abolish or limit the existing instalment payment model offered by banks.
The reform forms part of a broader EU effort to modernise consumer lending rules in response to the rapid growth of digital finance and “buy now, pay later” (BNPL) services. European policymakers aim to ensure that consumers receive the same level of protection regardless of how they finance their purchases, while also reducing the risk of excessive household indebtedness.
For consumers, the practical impact should be greater transparency before taking out credit and more rigorous checks to ensure that loans are affordable. At the same time, Croatian authorities emphasize that everyday shopping habits, including paying for purchases in several interest-free instalments by card, will remain available under the new legal framework.
