Installment Purchases Now Subject to Creditworthiness Checks
The new Consumer Credit Act takes effect on November 20, and starting June 1, 2027, retailers offering installment plans directly will be required to assess customers' creditworthiness.
The new Consumer Credit Act takes effect on November 20, and starting June 1, 2027, retailers offering installment plans directly will be required to assess customers' creditworthiness.
Buying a mobile phone, television, or furniture on installments directly from a retailer, without the involvement of a bank or payment cards, will soon be subject to new regulations. The Consumer Credit Act, which comes into force on November 20, 2026, introduces a mandatory creditworthiness assessment for all retailers offering installment payment options, as reported by ICV Virovitica, citing HRT.
When it comes to installment purchases using credit or debit cards, nothing changes for consumers. However, a significant shift occurs when the retailer itself offers installment plans, such as telecom operators or furniture sellers. The criteria for assessing creditworthiness will be set by the Croatian National Bank (CNB), and the obligation itself will apply from June 1, 2027.
Ana Zorić, acting director of the Directorate for Economy and Financial System at the Ministry of Finance, explained how the new rules will apply to specific purchasing scenarios.
"These are situations where you buy a mobile phone on installments, for example, and have a service contract with a telecom operator. If that operator also offers you the phone on installments, they become a creditor under the new law. The operator will have to check whether you can actually afford those installments, and they will do this by reviewing your income, introducing the element of creditworthiness assessment," Zorić told HRT.
All Croatian mobile operators-HT, A1, and Telemach-have stated they will comply with the legal provisions and will strive to keep the process as simple as possible for customers. In a statement, Telemach emphasized that they understand consumer protection is the primary goal.
"We understand that consumer protection is the primary goal, but at the same time, we believe that installment sales of devices, given the smaller amounts involved, are not entirely comparable to traditional credit products. It is important to ensure a proportionate application of the new requirements, without placing an excessive burden on users," Telemach's statement reads.
The Ministry of Finance assures that the check will not be as stringent as for real estate purchases, but retailers selling goods on installments will need to be licensed as creditors by the CNB. The goal is to protect citizens from over-indebtedness, and a statistic that further justifies the new measures is that one in five blocked citizens in Croatia is blocked precisely due to debts to telecom operators.
To further protect citizens, the new law also introduces free debt counseling, with FINA playing a key role. The counseling service will begin operations on January 1, 2027.
Vinka Ilak, a member of FINA's Management Board, emphasized that the aim is to provide support to citizens facing financial difficulties.
"The goal of the counseling service is to lend a hand, to help our citizens who are in financial trouble or are expected to encounter such difficulties. In our branches, they will be able to receive independent and free professional debt counseling, which includes not only financial analysis and help with structuring repayment plans but also concrete technical, legal, and even psychological assistance," Ilak stated.
According to Ilak, FINA will also act as an intermediary between debtors and creditors to find a sustainable plan for settling debts. This measure will cover not only consumer loans but also all other financial obligations of consumers, all with the aim of reducing indebtedness and improving the standard of living for citizens.
