💳 Loans, instalment purchases and consumer insolvency
In brief
Loans and payment by instalments cost money. Check interest and total amount. New rules come in November 2026.
- Small loans of up to 200 euros and buy now, pay later are also covered.
- You have a right to human review if an automated credit check decides.
- The "eternal" right of withdrawal is limited to a maximum of 12 months and 14 days.
If you are over-indebted: debt counselling first. See also the pages on poverty and debt.
Step by step
- Check the total costCompare effective interest rate, term and total amount.
- Do not over-borrowTake on instalments only if you can be sure to pay them.
- Act early if you have payment problemsTalk to creditors, debt counselling.
- Consider insolvencyOnly with advice; discharge of residual debt after the procedure.
Deadlines
- The implementing act was promulgated on 18 May 2026 (BGBl. 2026 I Nr. 139); entry into force 20 November 2026.
- The new rules do not apply retroactively to old contracts (not checked).
- Insolvency has consequences (Schufa, obligations). Not without advice.
- Text form instead of notarial certification for general consumer loans, according to the Federal Government.
In depth · legal basis, figures and practice – for advisers and professionals
New credit rules 2026
According to the Federal Government, small loans of up to 200 euros, interest-free and fee-free loans, loans with a term of up to three months and "buy now, pay later" models are brought within the consumer protection rules. The "eternal right of withdrawal" is abolished; the period is limited to a maximum of 12 months and 14 days in case of incorrect information. In case of automated creditworthiness assessment there is a right to human review. Objective limits for credit interest that is excessive to the point of being contrary to public policy are written into law (figures not retrieved here). The consumer credit provisions apply from 20 November 2026 (promulgated BGBl. 2026 I Nr. 139 of 18 May 2026).
Consumer insolvency
Under § 287 Abs. 2 InsO, the application must be accompanied by a declaration that the debtor assigns their attachable claims to income for a period of three years after the opening of insolvency proceedings (assignment period) to a trustee. Further requirements of the procedure were not researched here.
A question about your situation that this page does not answer? Write to us or use the contact form – we will tell you which office is responsible and what to bring. Free of charge, without individual legal advice.