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Consumer Watchdog Demands Stricter “Buy Now, Pay Later” Safeguards During Bundestag Review

VZBV highlights that approvals with a simple checkbox instead of a signature risk fueling impulse borrowing.

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Overview

  • The draft law classifies “Buy Now, Pay Later” services as regulated consumer credit to implement the EU Consumer Credit Directive and is now before the Bundestag.
  • VZBV warns that vague affordability criteria in the proposal could allow repayment checks to fall short and push consumers into debt traps.
  • The watchdog points to a Tübingen case where an 18-year-old’s 39 delayed payments amassed over €3,100 in charges within three months.
  • Critics say replacing signatures with a single-click checkbox for online loans encourages impulsive borrowing decisions without adequate authorization.
  • While praising caps on usurious interest rates and provisions for financial hardship support, VZBV calls for transparent reporting on rejected credit applications.