“Interest-free” installments and buy-now-pay-later models, known as BNPL, will be subject to stricter rules in the European Union (EU), with a direct impact on everyday purchases. The change is the result of a new European directive that now classifies this type of solution as consumer credit, no longer treating them as simple payment facilities.
According to Jornal de Negócios, the new European directive on consumer credit should come into force in November, after being transposed into national legislation. Until now, many of these services, used primarily for online shopping, have operated within a less demanding framework than that applied to traditional personal loans.
What changes for those who buy in installments
The main change is clear: BNPL solutions, such as those offered by international platforms, are now subject to the same creditworthiness assessment obligations as any other consumer credit.
According to Jornal de Negócios, this means that entities will have to assess the consumer’s financial capacity before approving the phased payment. It is no longer possible to grant this type of financing without an adequate analysis of the risk, even when payment is made in a few installments and announced as “interest free”.
Furthermore, the information provided to the customer must be more detailed and transparent. The publication explains that consumers should now receive clearer data on costs, deadlines, possible charges and consequences of default.
Cards and automatic offers also under scrutiny
Another relevant change concerns credit cards granted without an explicit request from the customer. According to the same source, this type of practice will no longer be permitted, reinforcing consumer protection.
The new rules seek to avoid situations in which credit is made available almost automatically, without the consumer being fully aware of the obligations assumed. The directive aims to harmonize practices across Europe and reduce risks associated with over-indebtedness.
The European Commission has argued that the accelerated growth of e-commerce and digital payment solutions justified an update to the legal framework. According to the same source, the objective is to ensure that consumers benefit from the same level of protection, regardless of how they take out credit.
What does it mean in practice for the consumer?
In practice, purchasing in installments will continue to be possible. What changes is the framing. Companies will have to comply with more demanding rules, particularly when assessing payment capacity and communicating contractual conditions.
This can translate into less immediate approval processes and greater scrutiny of the customer’s financial history. On the other hand, it could also mean greater transparency and less risk of unexpected charges.
The transposition of the directive into the Portuguese legal system should take place later this year, explains the , with effective implementation scheduled for November. Until then, entities will have to adapt procedures, systems and contracts to the new requirements.
For the common consumer, the message is simple: “interest-free” installments are not disappearing, but they are no longer a territory with almost no rules. And this can change the way you buy, especially on digital platforms where phased payments have become almost automatic.
In a context of inflation and pressure on income, these solutions have gained popularity. With the new legislation, the focus shifts to consumer protection and a more rigorous assessment of debt capacity.
Future installment purchases may therefore require an additional step before approval. And this detail can make a difference in the way you manage your budget.
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