🎧 From 19 June 2026, new rules governing the remote sale of financial services have come into force in Germany. What do the new withdrawal button, chatbot requirements and the ban on dark patterns mean for banks and FinTechs? – Tune in now!
New Remote Selling Rules for Financial Services
The implementation of the revised European Distance Marketing Directive marks a significant shift for providers of financial services. Banks, FinTechs and other financial institutions must review their digital customer journeys, contractual processes and pre-contractual information to ensure compliance with the new legal framework.
In this episode, Dana Wondra from Payment & Banking speaks with Kemal Ahmedi, Annerton partner and author at PayTechLaw, about the most important changes and explains what financial services providers should be doing now.
A New Withdrawal Function for Online Contracts
One of the most visible changes concerns the withdrawal of financial services contracts concluded online. Providers must now offer consumers an easily accessible withdrawal function enabling them to exercise their statutory right of withdrawal.
This functionality must allow consumers to identify the relevant contract, submit and confirm their withdrawal request and receive an acknowledgement of receipt on a durable medium. As a general rule, prior registration must not be required unless the contract could only be concluded through a customer account.
The reform also provides greater legal certainty by abolishing the previously existing “perpetual” withdrawal right. Where consumers have been informed about their withdrawal rights, the right expires no later than twelve months and fourteen days after the conclusion of the contract, even if the information provided was defective. However, businesses must review and update their withdrawal documentation, as the existing model withdrawal notices for financial services will no longer apply.
Expanded Pre-contractual Information Requirements
The reform extends well beyond withdrawal rights. Financial services providers must now ensure that consumers receive sufficient information to assess whether a product meets their personal needs and financial circumstances.
This includes clear explanations of the essential characteristics of the contract as well as information about potential financial consequences, such as the implications of missed payments or default. Requirements that were previously familiar from consumer credit law now apply more broadly to financial services sold at a distance.
Chatbots and Automated Customer Advice
The new legislation also introduces specific rules for automated advisory systems.
Where providers rely exclusively on chatbots or other automated advisory tools, consumers must be able to request access to a human representative before entering into the contract. In certain situations, this obligation may even continue after the contract has been concluded.
Financial institutions should therefore assess whether their digital advisory processes comply with the new legal requirements.
The End of Dark Patterns
The legislation also targets so-called dark patterns—design techniques intended to manipulate consumer behaviour.
Examples include:
- excessively highlighted options;
- repeated pop-up windows;
- unnecessarily complicated cancellation or withdrawal procedures; and
- misleading or manipulative user interface design.
Failure to comply with these requirements may not only result in civil law consequences but can also constitute an administrative offence.
What Financial Services Providers Should Do Now
The reform affects virtually every stage of the digital contracting process for banks and FinTechs.
Particular attention should be paid to:
- digital onboarding and contracting processes;
- pre-contractual disclosures;
- chatbot and automated advisory solutions;
- customer journey and UX design;
- the elimination of dark patterns; and
- documentation and compliance processes.
Organisations that adapt their processes early will reduce regulatory risk while increasing transparency and consumer confidence.
About this podcast
Alles Legal – Fintech Recht Kompakt delivers sharp, weekly insights into legal and compliance matters in the world of banking. (in German only)
This podcast is a collaboration between Payment & Banking and PayTechLaw.
Each Wednesday, we unpack the legal developments shaping the financial world – clearly, concisely, and without the legal jargon.
Since 2021, PayTechLaw authors and Annerton attorneys have brought depth and clarity to complex topics.
Whether it’s PSD3, DORA, or FiDA – we provide the legal context you need.
In 20 minutes. No detours.
