The Consumer Protection Service has launched a new round of public consultation on the draft bill titled “The Consumer Credit Contracts Law of 2025”, which has been available online since August 12.
The updated draft follows substantial revisions to the original text, based on comments and suggestions received during the previous consultation phase held between October 14 and November 25, 2024. All submissions were thoroughly examined, and where possible, incorporated into the revised version.
The bill aims to harmonize Cyprus law with EU Directive 2023/2225 of the European Parliament and Council, adopted on October 18, 2023. The directive, which repeals Directive 2008/48/EC, seeks to adapt consumer credit rules to new online lending models and address related risks, while removing ambiguities that previously allowed member states to adopt divergent measures.
Key Objectives of the Directive
Broadly, the directive seeks to:
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Achieve greater harmonization of consumer credit contracts across the EU by promoting a more uniform approach to credit issuance and ensuring strong consumer protection.
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Expand its scope to include credit contracts under €200, interest-free credit without fees, contracts up to €100,000, and credit provided through crowdfunding platforms.
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Ensure consumers are clearly and transparently informed about contract terms, enabling them to make sound financial decisions.
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Reduce over-indebtedness by increasing consumer awareness of credit costs, mandating disclosure obligations for credit providers and intermediaries even at the advertising stage.
Additional provisions include mandatory creditworthiness assessments, detailed pre-contractual information for consumers, and clear rules on exercising withdrawal rights and early repayment options.
In line with Article 41(4) of the directive, the Consumer Protection Service has also prepared a complementary bill amending Law 154(I)/2020 on cooperation between competent authorities for consumer protection enforcement.
The Service invites all stakeholders to submit comments or proposals no later than September 15, 2025.
