An important initiative through which the Ministry of Development seeks to strengthen the protection of citizens against abusive and misleading practices is the new bill to safeguard consumer rights, promoted by Minister of Development Takis Theodorikakos, which has been put out for public consultation
As stated in a related briefing by the Ministry of Development, the new legislative initiative aims to create a fairer, secure, rigorous, and transparent framework by incorporating four European directives concerning consumer credit, distance contracts, the green transition, and the right to repair. Importantly, the Ministry of Development is adding additional protective measures beyond the EU directives.
1. Which borrowers are covered by the Consumer Credit Directive
The regulations cover loan agreements without real property collateral (e.g., a mortgage), meaning loans that are not secured by a mortgage or other asset. These are mainly consumer loans, home improvement loans, and credit cards, for amounts up to 100,000 euros. This means it covers the majority of everyday household financing from banks.
2. An end to the “fine print”
One of the key issues the bill aims to address is the use of difficult-to-understand contract terms and hidden fees. From now on, contract terms must be clear and accessible to the average consumer, so that there are no traps or misunderstandings leading to additional financial burdens.
3. Mandatory transparency in banking contracts
The Ministry of Development places particular emphasis on the transparency of banking contracts. Banks will now be required to present, in a clear and understandable manner, all fees, interest rates, commissions, and the risks that a loan may entail. Full consumer information is a fundamental prerequisite for a healthy financing market.
4. Making the 14-day right of withdrawal clearer to borrowers
Every borrower already has the right to withdraw within 14 days of signing the contract, and the framework is now becoming clearer and more transparent. Any citizen may cancel the loan without penalties or obligation to provide justification, provided they determine that the terms do not suit them or if they change their mind. This provision strengthens consumers’ bargaining position and aligns Greek legislation with European consumer protection standards. The principle is that just as it is easy to enter into a contract, it must also be easy to exit it.
5. Strengthening Customer Service
Regarding the 2nd European Directive on distance contracts, at a time when banking services are becoming increasingly digital, the bill provides that citizens will have the right to speak with a live person when requesting human assistance. They will not be required to rely solely on automated systems or chatbots, which is particularly important for the elderly and vulnerable social groups.
6. A double safety net for consumers: Setting caps on interest rates and total loan costs
One of the most important provisions is the introduction of a cap on the total annual effective interest rate (APR), which may not exceed 30% to 50% of the APR, as published on a quarterly basis by the Bank of Greece. The exact percentage will be determined by a decision of the Minister of Development and the Minister of National Economy and Finance, in consultation with the Governor of the Bank of Greece. In addition, limits are set on the amount by which the initial principal of the loan may increase during repayment. Specifically, the final amount to be paid by the borrower, excluding credit cards, may not exceed 60% for loans up to 4 years, 70% for loans over 4 years and up to 8 years, and 75% for loans over 8 years.
7. Addressing household over-indebtedness
This cap aims to put the brakes on situations where interest, fees, and charges led to a disproportionate increase in the final debt. For years, thousands of borrowers found themselves paying far more than they had originally anticipated. The new regulation seeks to ensure predictability and control over the final cost.
8. Right to be forgotten for cancer survivors
Creditors are prohibited from using personal data related to a consumer’s cancer diagnosis for the purposes of an insurance contract linked to a credit agreement, provided that five years have elapsed since the completion of their treatment. This provision facilitates equal access for consumers to credit products and eliminates any potential adverse treatment.
9. Timeline for the implementation of the Consumer Credit Directive
The full implementation of the directive concerning loan agreements will take effect on or after November 20.
10. Tightening of the framework for so-called “eco-friendly products”
Directive 2024/85 aims to further strengthen consumer protection. New clear and specific provisions and definitions are introduced, such as the concepts of “environmental claims,” “sustainability labels,” and “durability” or “repairability” of goods, with the aim of addressing misleading practices that create a false image of environmental responsibility (greenwashing) and unduly influence consumer behavior and competition.
The directive prohibits misleading environmental claims and aims to improve information regarding key technical characteristics of products such as durability, repairability, lifespan, and reusability. The long-term goal is to foster a consumer culture that supports the circular economy and helps reduce the environmental footprint. The date of application of this directive is September 27, 2026.
11. Strengthening the “right to repair”
Directive 2024/1799 aims to strengthen consumers’ right to repair their products rather than replace them prematurely, with the goal of reducing waste and overconsumption. The “right to repair” is hereby established. The seller is obligated to inform the consumer of their right to choose between repair and replacement, as well as of the extension of the limitation period.
The product categories, in accordance with the directive, are as follows: household washing machines, household dishwashers, refrigerators, household clothes dryers, monitors and televisions, vacuum cleaners, servers and data storage products, mobile phones, cordless phones, and computers—tablets, and welding equipment.
12. It does not have retroactive effect
It should be emphasized that it will not have retroactive effect, meaning that it does not apply to loan agreements that have already been concluded.