Revolution in Installment Buying: From November, Every Purchase on Deferred Payment Becomes a Credit

# Revolution in Installment Buying: From November, Every Purchase on Deferred Payment Becomes a Credit — and Telecoms Become Banks

**Croatia is introducing the biggest reform of consumer credit in its history. The new Consumer Credit Act (replacing the current Consumer Credit Act and the Housing Consumer Credit Act) brings changes that everyone will feel — from a teenager buying their first phone on installments, to a pensioner buying a refrigerator on deferred payment.**

November 20, 2026 — that date should probably end up in the calendars of everyone who has ever planned to buy anything “on credit, on installments, on deferred payment.”

From that day on, there is no more “simple installment buying.” **Everything** — and we mean everything — that involves deferred payment will be considered a credit relationship. And it will be subject to the same rules as a bank loan.

## 🔢 Key Numbers at a Glance

> Source: Statement by State Secretary Stipe Župan in Parliament, plus data from FINA and the Ministry of Finance.

## What Actually Changes?

### 1. 🔐 Buying on Installments = Credit. Period.

Before: Walk into a store, show your ID, sign a paper, and walk out with a phone on 24 installments with zero interest. No checks, no questions.

From November: Every purchase on deferred payment is considered a credit relationship. This means **every seller** (store, telecom, webshop) offering installment payments must obtain a **license from the Croatian National Bank (CNB/HNB)** to operate in this way.

### 2. 📋 Mandatory Creditworthiness Check

This is what will hurt the most. Before you get approved for installment buying, the seller will have to check whether you can **actually afford it**.

Specifically, this means:
– You’ll need to provide proof of **income** (pay slip, bank statement)
– The seller will check your **existing obligations** through HROK (Croatian Register of Credit Obligations)
– If you’re already too indebted — **approval won’t be granted**

And yes — this applies **even to interest-free installments**. No more “it’s just 12 installments with no interest, it’s not a loan.” The law says: it is.

### 3. 📱 Telecoms Are No Longer “Just Telecoms”

This might be the biggest practical change. Telecom operators (HT, A1, Telemach) who sell devices on installments have so far operated with virtually no financial regulation.

Now they enter the realm of **credit intermediaries**. They will have to:
– Obtain an HNB license
– Check customers’ creditworthiness
– Be under HNB supervision

Although they point out that “they are not financial institutions,” the legislator is clear: if you approve deferred payment, you are subject to the same rules as banks.

Telecoms have been given a **transition period until June 1, 2027** to adapt.

### 4. 🚫 BNPL (Buy Now, Pay Later) — End of the “Wild West”

You may have heard of Klarna, Afterpay, and similar services — “pay in 30 days” or “4 installments over 6 weeks.” In Croatia, these models have so far been completely unregulated.

The new law changes this from the ground up. **All forms of BNPL lending** fall under the same regulatory framework. At the EU level, the BNPL market is worth about **€190 billion**, and it’s mostly used by young people.

### 5. 🆔 “Right to be Forgotten” for Cancer Survivors

This is perhaps the most humane provision of the law. People who have survived an oncological disease, after **10 years from the completion of treatment**, no longer have to report this fact when contracting insurance related to a consumer credit.

In other words — insurance companies can no longer discriminate against people who have beaten cancer after 10 years have passed since treatment.

### 6. 💡 Free Debt Counseling (FINA)

The law introduces a system of **independent debt counseling** primarily provided by **FINA**, with the possibility of including non-profit organizations.

What you get for free:
– Basic information about debt
– Detailed analysis of your financial situation
– **Individual repayment plan**
– Help in communicating with creditors
– Legal, technical, and basic **psychological support**

### 7. ⚠️ Stricter Advertising Rules

“Only €19.90 per month!” — these ads won’t fly as easily anymore. The law introduces stricter rules for credit advertising and marketing to prevent misleading offers that encourage unsustainable borrowing.

## Who is Covered by the New Law?

The law consolidates **two existing laws** (Consumer Credit Act + Housing Consumer Credit Act) into one unified regulatory act.

**Covered by the new regulation:**
– Banks and credit institutions
– **Telecom operators** (device sales on installments)
– **Retailers** offering installment purchases
– **BNPL platforms** (Buy Now, Pay Later)
– **Credit cards** with deferred payment
– Everything with deferred payment > 3 months

**Exempted (for now):**
– Leasing companies (remain under HANFA supervision)
– Insurance companies (remain under HANFA supervision)

## When Does What Take Effect?

## What Does This Mean for You?

If you’re planning to buy on installments **after November 20, 2026**:
– Prepare pay slips and proof of income
– Expect a procedure that will resemble getting a loan
– If you’re already blocked or over-indebted — forget about installment buying
– If you’ve survived cancer — after 10 years you have the right to “financial forgetting”

If you bought goods on installments **before November 20** — don’t worry, existing contracts remain valid under the old terms.

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*This article is based on the Final Proposal of the Consumer Credit Act submitted by the Government to the parliamentary procedure, statements by State Secretary Stipe Župan in the Croatian Parliament, and available data from FINA, CNB, and the Ministry of Finance.*

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