# New Rules for Loans and Overdrafts: What Changes from November 20, 2026
The Croatian Parliament passed the new Consumer Credit Act on July 15, 2026, bringing the biggest reforms to consumer and mortgage lending in the last 15 years. The law takes effect on November 20, 2026 — here’s what it actually means for your wallet.
The law consolidates the previous Consumer Credit Act and the Housing Consumer Credit Act into a single regulatory framework. At the same time, it transposes EU Directive 2023/2225 (CCD 2) into Croatian legislation.
Goal: stronger consumer protection, greater transparency, more responsible lending. And concretely? We have 17 key changes that citizens will feel firsthand.
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## 🏦 1. Your Bank Can No Longer Increase Your Overdraft Without Asking
This is probably the biggest news for everyone who has an authorized overdraft on their current account.
From November 20, 2026, the bank cannot unilaterally introduce a new or increase an existing authorized overdraft. The same applies to tacitly accepted overdrafts and increases to credit card limits.
Changes are only possible with your explicit consent. No one will send you a leaflet saying “we’ve increased your overdraft to 3 salaries” and push you into a debt trap.
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## 📋 2. Interest-Free and Short-Term Loans Now Within the Legal Framework
Until now, “buy now, pay later” schemes and short-term loans (such as those up to 3 months) were often outside the full scope of the law. Not anymore.
Covered are:
– Interest-free and fee-free loans
– Short-term loans up to 3 months with a fee of up to €3.98
– Certain forms of overdrafts
The previous upper limit of €132,722.81 is abolished — the law no longer stops applying just because the loan exceeds that amount.
For loans under €200 and interest-free or short-term loans, simplified information obligations apply.
Important: installment purchases via cards are not abolished as of November 20. Application to that segment begins on January 1, 2028.
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## 📢 3. Mandatory Warning in Advertisements
Every loan advertisement must include a clearly displayed warning:
“Caution! Borrowing is not free.”
If the advertisement mentions an interest rate or any numerical data about the cost of credit, it must also display:
– the effective annual percentage rate (APR)
– the total loan amount
– the total amount the consumer must pay
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## 🚫 4. Misleading Messages Prohibited
Banks and credit intermediaries may not suggest:
– that a loan improves your financial situation
– that a loan is a substitute for savings
– that a loan increases your standard of living
– that an unpaid loan has no effect on a new application
It is also prohibited to offer a deferral of payment longer than 3 months as a reason to take out a loan.
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## ✅ 5. No More Hidden Checkboxes
No more of that “you’ve already subscribed to additional insurance” trick. The bank cannot approve a loan without the consumer’s prior request and explicit consent.
Consent cannot be assumed via a pre-checked box. If you want an additional service — you must click it yourself.
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## 🔍 6. Stricter Creditworthiness Assessment
Before approving a loan, the bank must thoroughly check:
– income and expenses
– financial and economic circumstances
It may not rely solely on credit history.
It may not use health data.
It may not pull data from social networks.
A loan may only be approved if the assessment shows you can repay it properly.
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## 🤖 7. AI Does Not Decide Alone
If the bank uses automated systems (artificial intelligence) for creditworthiness assessment, it must inform you. You have the right to:
– human assessment
– an explanation of the logic behind the automated processing
– a review of the decision
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## ❤️ 8. “Right to Be Forgotten” for Former Cancer Patients
Insurers may not use data about cancer diagnoses if 10 years have passed since the end of treatment.
This gives people who have survived cancer a more favorable position when arranging insurance linked to a loan.
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## 🏥 9. Free Choice of Insurance
The bank cannot require you to take out an insurance policy with a specific insurance company. It may require appropriate insurance, but must also accept a policy from another insurer if it provides an equivalent level of protection.
You have at least 3 days to compare insurance offers before signing.
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## 💳 10. The Bank Cannot Force You to Transfer Your Salary
The practice of “tying” is prohibited — the bank may not make obtaining a loan conditional on opening an account or transferring your income to them.
Bundling of services is allowed (a package where the loan is cheaper if you use other products), but such a package must be a separate option, and the loan must be available without that additional product.
If the benefit affects the interest rate, the bank must notify you at least 15 days in advance of its termination.
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## ↩️ 11. Stronger Right of Withdrawal
Standard: 14 days to withdraw from a loan agreement without stating a reason.
If you did not receive the contractual terms: the deadline extends to 12 months and 14 days.
If you were not informed at all about the right of withdrawal: no time limit.
For mortgage loans: the bank must give you at least 15 days to compare offers before signing.
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## 💰 12. Cheaper Early Repayment
Upon early repayment, you are entitled to a proportional reduction of the total loan costs, including costs charged at approval.
Early repayment fee (only for fixed interest rates):
| Remaining Period | Maximum Fee |
|---|---|
| More than 1 year | 1% of the repaid amount |
| Less than 1 year | 0.5% of the repaid amount |
The fee is charged only if the total early repayment in 12 months exceeds €10,000 — and only on the portion above that amount.
For mortgage loans — no early repayment fee is allowed. Zero.
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## 📈 13. Rate Goes Up? Repay Without Fee
If the bank increases the interest rate on your consumer loan, you have the right within 3 months of receiving the notice to repay the loan early without any fee.
The bank must notify you of the rate increase at least 15 days in advance.
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## 🏠 14. No Processing Fee for Mortgage Loans
The bank may not charge, require, or collect a fee for processing and/or approving a mortgage loan.
After concluding the agreement, it may not introduce new fees or increase existing ones (except for certain card products).
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## 📊 15. Interest Rate Caps Maintained
The law retains and consolidates protective interest rate limits:
| Loan Type | APR Cap |
|---|---|
| Consumer loan | Statutory default interest + 2 percentage points |
| Mortgage loan | Statutory default interest |
For fixed interest rates: cap = default interest + half of that rate.
For variable rates: cap based on average weighted interest rates published by the Croatian National Bank.
Important: this does not mean everyone’s interest rate will automatically drop on November 20. The limits apply to new agreements, with special transitional rules for existing ones.
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## 📞 16. FINA Introduces Free Debt Counseling
If you have difficulty repaying a loan, the bank must offer you:
– free debt counseling (via FINA, in cooperation with consumer associations)
– measures to facilitate repayment (extension of term, deferral, refinancing)
These protective measures begin applying immediately from November 20, 2026, without delay.
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## 📄 17. Annual Loan Statement
The bank must at least once a year (no later than March 31) provide you with a free annual loan statement for the previous year.
The same statement must also be provided to co-debtors and guarantors.
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## 📅 Key Dates
| Date | What Happens |
|---|---|
| November 20, 2026 | Law takes effect — majority of new rules |
| June 1, 2027 | Application to merchants and operators offering credit |
| January 1, 2028 | Application to installment purchases via cards |
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## 🧠 What This Means for You
Short and clear:
1. Have an overdraft? The bank can no longer increase it without asking ✅
2. Taking out a loan? The bank must check whether you can repay it, not just your credit score ✅
3. Mortgage loan? No processing fee, no early repayment fee ✅
4. Having trouble repaying? FINA offers free counseling ✅
5. Survived cancer? After 10 years — it never happened ✅
Smart move: If you’re planning to take out a loan in the next few months, it might be wise to wait until November 20 — the new rules are significantly more favorable for consumers.
But also — the Croatian National Bank is further tightening lending conditions from October 1, 2026, so loans may be harder to get. More on that in the next article! 😉
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Sources: Consumer Credit Act (OG 69/2026, consolidated text), Poslovni dnevnik, N1, Tportal