Overview
- An ordinance transposing the EU’s 2023 consumer‑credit directive takes effect on 20 November 2026, moving overdrafts and short‑term facilities into the consumer‑credit regime.
- Banks will conduct affordability checks before granting authorisations, with light requirements up to €200 and detailed reviews above that threshold of income, expenses and any credit incidents.
- Customers must receive standard pre‑contract information, including a clear presentation of costs, the APR (TAEG) and repayment conditions, before an overdraft is approved.
- Existing overdraft authorisations granted before 20 November 2026 are legally exempt, though any new or increased limits will be assessed under the new rules and banks may still adjust facilities under contractual notice provisions.
- Consumer advocates and experts warn access could tighten for modest‑income households as lenders apply typical consumer‑credit solvency practices such as the roughly 30% charges‑to‑income rule, a concern echoed as many households report frequent overdraft use.