CCD II in Austria: VKrG 2026 and BWG changes expand scope of application and strengthen governance standards

With the ministerial draft of the new Consumer Credit Act (Verbraucherkreditgesetz, VKrG 2026) and the accompanying amendments to the Banking Act (Bankwesengesetz, BWG), Austria is implementing Directive (EU) 2023/2225 on credit agreements for consumers (CCD II). While the VKrG 2026 reorganizes the rules on consumer credit and expands the scope of application as well as transparency, process and assessment standards, the amendment to the BWG establishes a supervisory framework that, in particular, confers on the Financial Market Authority (Finanzmarktaufsichtsbehörde, FMA) clearly delineated competences in the field of collective consumer protection. As a result, credit institutions will be subject to enhanced compliance, organisational and governance obligations.

VKrG 2026: Background, timeline and regulatory architecture

CCD II seeks to adopt the objective of adapting consumer protection in relation to credit agreements to technological and market developments and to ensure harmonisation across the Union. According to the EU legislator, Directive 2008/48/EC has proved only partially effective, in particular in light of digitalisation, new product forms such as BNPL (“Buy Now Pay Later”), and divergent national implementations. The new legal framework is considerably broader in scope, provides for a higher degree of full harmonisation, and is tailored to modern distribution channels. The VKrG 2026 will apply to agreements concluded on or after 20 November 2026. However, certain provisions will also apply to agreements concluded before 20 November 2026 that are still in force. The VKrG 2026 specifically addresses:

an extended scope of application, in particular the removal of the EUR 200 threshold and the inclusion of digitally designed financing arrangements that are often presented as “free of charge”, including BNPL‑type offers,
new digitalisation requirements that ensure a presentation adapted to the medium (in particular on mobile devices) and enhanced transparency also for profile‑based and online‑distributed credit offers,
expanded information requirements vis‑à‑vis consumers,
tightened requirements for the assessment of creditworthiness, including rules for automated procedures, and
new forbearance measures for repayment difficulties.

Particularly significant is the extended scope of application. The new act now also covers credit with a total amount of less than EUR 200 and credit granted free of interest and without any other charges. The previous threshold of EUR 200 is abolished; contracts that are “free of interest and without any other charges”, which were expressly excluded from the scope of Directive 2008/48/EC, are now covered. This results in a substantial expansion of the scope of the VKrG 2026. In the future, not only traditional consumer loans will be subject to the consumer‑protection framework, but, in principle, any form of deferred payment or financing assistance—irrespective of whether it is granted on a short‑term basis or free of charge. The EU legislator’s focus here was on the “Buy Now Pay Later” (BNPL) business model, which has become established particularly in digital commerce and has always been considered problematic from a consumer‑protection perspective. Since a fully capturing of all deferred payments in online commerce would not be appropriate, an exemption has been implemented in Section 39(2) No. 3 VKrG 2026 to the effect that typical deferred payments granted by suppliers of goods or providers of services do not fall within the scope of the VKrG 2026, provided certain conditions are met. It is also welcome that, in the draft, the Austrian legislator has exercised the option to exempt “deferred debit cards”. As a result, common payments by credit card are covered by the exemption, which provide consumers with temporarily deferred settlement and thus greater flexibility in household budgeting (Section 39(2) No. 2 VKrG 2026).

New competence of the FMA for collective consumer protection

In parallel, the supervisory architecture is being modernised: a key innovation is the introduction of a clear distinction between individual and collective consumer protection. The FMA will, for the first time, be responsible for administrative enforcement in the area of collective consumer credit law. Pursuant to Section 33a(1) No. 1 BWG, credit institutions must establish arrangements to prevent infringements which, by their nature or scale, may jeopardise the interests of more than one consumer. The explanatory notes clarify that this refers to systematic infringements, whereas infringements concerning individual consumer protection do not fall within the FMA’s supervisory remit. Another key novelty is the extension of the FMA’s supervisory competence to the field of consumer credit. Section 3(9) BWG has been supplemented to include compliance with the new Section 33a, as a result of which the FMA is now also responsible for conduct‑of‑business‑oriented on‑site inspections in relation to consumer credit. The newly introduced Section 33a BWG constitutes the core of the amendments and obliges credit institutions to take comprehensive measures:

Arrangements to prevent systematic infringements;
Qualification requirements for staff;
Remuneration policy and risk management;
Prohibition of unsolicited credit;
Early detection of financial difficulties; and
Forbearance measures prior to enforcement.

Supervision and oversight by the FMA

The FMA is vested with comprehensive powers:

Monitor compliance with all requirements laid down in Section 33a(1) BWG;
Request from credit institutions all evidence necessary;
Conduct on‑site inspections; and
Set minimum requirements regarding knowledge and competence by way of regulation.

Conclusion

For creditors, the VKrG 2026 primarily entails the timely adaptation of existing processes by the date of application on 20 November 2026. The focus is on reviewing the extended scope of application. The amendments to the Banking Act constitute an important step towards strengthening collective consumer protection. The clear allocation of responsibilities, with the FMA as the supervisory authority, creates effective control mechanisms. While the new provisions entail additional obligations for credit institutions, they ultimately also serve to mitigate risk and to promote responsible lending practices. Note This article provides a general overview and does not constitute legal advice. It cannot replace individual legal consultation. For further information, please refer to Binder Grösswang’s website, where additional parts of the Neues Verbraucherkreditgesetz 2026 series have been published.

Banking and finance

CCD II in Austria

Rankings

Tier 1

Binder Grösswang

DORDA Rechtsanwälte GmbH

Schoenherr (Schönherr Rechtsanwälte)

Wolf Theiss Rechtsanwälte GmbH & Co KG

Tier 2

Cerha Hempel

CMS Reich-Rohrwig Hainz Rechtsanwälte GmbH

DSC Doralt Seist Csoklich Rechtsanwälte GmbH

E+H Rechtsanwälte GmbH

Tier 3

Baker McKenzie Rechtsanwälte GmbH

BRANDL TALOS Rechtsanwält:innen GmbH

Fellner Wratzfeld & Partners

Freshfields

Greenlake Legal

Herbst Kinsky Rechtsanwalte GmbH

Tier 4

bpv Hügel

DLA Piper Weiss-Tessbach Rechtsanwälte GmbH

JWO | Deloitte Legal

SAXINGER Rechtsanwalts GmbH

PHH Rechtsanwält:innen GmbH

Tier 5

Rautner Rechtsanwälte GmbH

VÖLKL Rechtsanwälte GmbH

Weber & Co. Attorneys-at-Law

Taylor Wessing enwc Rechtsanwälte GmbH

Tier 6

AKELA

EY Law - Pelzmann Gall Größ Rechtsanwälte GmbH

PFR Fritzsche Frank Fletzberger Rechtsanwälte GmbH

Tier 0

CHG Czernich Haidlen Gast & Partner

Müller Partner Rechtsanwälte

rk partners Rechtsanwaelte GmbH

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