🎧 In episode #134 of Alles Legal – Fintech-Recht kompakt, we explore how the new Consumer Credit Directive (CCD2) is reshaping the checkout for BNPL, purchase on invoice and instalment payments. – Tune in now!
CCD2: New checkout requirements
In the latest episode of Alles Legal – Fintech-Recht kompakt, Annerton partner Dr Florian Lörsch speaks with host Dana Wondra from Payment & Banking about what the new Consumer Credit Directive, CCD2, means for Buy Now Pay Later, purchase on invoice and instalment payments.
The implementation of CCD2 into German law will affect many processes in e-commerce. The checkout is particularly relevant: from how payment options are displayed to pre-contractual information, creditworthiness assessments, withdrawal rights and contract conclusion.
Advertising, price information and new unfair competition rules
Even displaying purchase on invoice or instalment payment options during checkout may have legal consequences. Depending on the setup, this may qualify as advertising for consumer credit. Providers may then need to comply with requirements on presenting costs, interest rates and representative examples.
New rules under unfair competition law will also apply. In future, credit advertising must avoid certain statements and clearly indicate costs where credit is provided for a fee.
SECCI and pre-contractual information
Pre-contractual information will also become more important. The European Standardised Consumer Credit Information form, known as SECCI, will also need to be considered for certain BNPL and purchase-on-invoice models.
There may be templates and simplifications for specific cases, such as short terms or low amounts. However, integrating these information duties properly into the checkout will still be a practical challenge.
Creditworthiness checks and declined customers
Creditworthiness assessments are another key issue. Where a customer is declined, a purely technical response will not be enough. Providers must provide certain information, including why the decision was made and what rights the customer has.
Withdrawal rights: More responsibility for providers
The statutory model withdrawal instruction will no longer apply. Providers will therefore need to draft their own wording and take greater responsibility for its legal quality. At the same time, the risk of an indefinite withdrawal right will be limited.
Conclusion
CCD2 will not change only one part of the checkout. It affects the entire customer journey: product communication, payment options, assessment processes, information duties and contractual documentation. Providers should therefore review and adapt their processes at an early stage.
About This Podcast
Alles Legal – Fintech Law in Brief delivers weekly insights into legal and compliance topics in the banking and fintech sectors.
This podcast is a collaboration between Payment & Banking and PayTechLaw.
Each Wednesday, our experts explain current legal developments in a clear and concise way – no legalese, just the context you need. Since 2021, PayTechLaw authors and Annerton lawyers have been bringing legal depth to the mic without losing clarity.
Whether it’s PSD3, DORA or FiDA – we provide the background you need. In 20 minutes. Straight to the point.
