# Consumer credit

Source page: https://protegra.io/licensing/activities/consumer-credit/

Offering consumer credit agreements, including personal loans and buy-now-pay-later arrangements, requires a lending licence or a banking licence under the Consumer Credit Directive (CCD2) Articles 2-3 and national law. Providers must comply with rigorous pre-contractual disclosure standards, mandatory creditworthiness assessments and statutory cooling-off right-of-withdrawal rules across member states.

## Definition

Granting or promising credit to consumers, including buy-now-pay-later, subject to consumer protection rules on information, creditworthiness and withdrawal.

- CCD2, Art. 2-3: [official text](https://eur-lex.europa.eu/eli/dir/2023/2225/oj)

## Which licence you need

Licence families that typically permit this activity:

- [Lending / consumer credit](https://protegra.io/licensing/licences/lending/)
- [Bank / credit institution](https://protegra.io/licensing/licences/bank/)

- [Credit · AustraliaAustralian credit licence (ACL)ASIC](https://protegra.io/licensing/licences/lending/australia/)
- [Credit · Czech RepublicNon-bank Consumer Credit Provider licence (oprávnění k činnosti nebankovního poskytovatele spotřebitelského úvěru)CNB](https://protegra.io/licensing/licences/lending/czech-republic-consumer-credit/)
- [Credit · EstoniaOperating licence as a credit servicerFI](https://protegra.io/licensing/licences/lending/estonia-credit-servicer/)
- [Credit · EstoniaOperating licence as a creditorFI](https://protegra.io/licensing/licences/lending/estonia-creditor/)
- [Credit · EstoniaAuthorisation for operating as a financial institution (Tegevusluba finantseerimisasutusena tegutsemiseks)FIU](https://protegra.io/licensing/licences/lending/estonia-financial-institution/)
- [Credit · EstoniaOperating licence as a credit intermediaryFI](https://protegra.io/licensing/licences/lending/estonia-intermediary/)
- [Credit · PolandLending Institution registration (instytucja pożyczkowa - RIP)KNF](https://protegra.io/licensing/licences/lending/poland-institution/)
- [Credit · SpainEstablecimiento financiero de crédito (EFC) / Specialized lending credit institution authorizationBdE](https://protegra.io/licensing/licences/lending/spain-efc/)
- [Credit · United KingdomConsumer Credit Full Permission Authorisation (Part 4A FSMA)FCA](https://protegra.io/licensing/licences/lending/united-kingdom-consumer/)

## Where it can be licensed

| | EU/EEA passport | Domestic |
| --- | --- | --- |
| [Australia: Australian credit licence (ACL)](https://protegra.io/licensing/licences/lending/australia/) | | ✓ |
| [Czech Republic: Non-bank Consumer Credit Provider licence (oprávnění k činnosti nebankovního poskytovatele spotřebitelského úvěru)](https://protegra.io/licensing/licences/lending/czech-republic-consumer-credit/) | | ✓ |
| [Estonia: Operating licence as a credit servicer](https://protegra.io/licensing/licences/lending/estonia-credit-servicer/) | | ✓ |
| [Estonia: Operating licence as a creditor](https://protegra.io/licensing/licences/lending/estonia-creditor/) | | ✓ |
| [Estonia: Authorisation for operating as a financial institution (Tegevusluba finantseerimisasutusena tegutsemiseks)](https://protegra.io/licensing/licences/lending/estonia-financial-institution/) | | ✓ |
| [Estonia: Operating licence as a credit intermediary](https://protegra.io/licensing/licences/lending/estonia-intermediary/) | | ✓ |
| [Poland: Lending Institution registration (instytucja pożyczkowa - RIP)](https://protegra.io/licensing/licences/lending/poland-institution/) | | ✓ |
| [Spain: Establecimiento financiero de crédito (EFC) / Specialized lending credit institution authorization](https://protegra.io/licensing/licences/lending/spain-efc/) | | ✓ |
| [United Kingdom: Consumer Credit Full Permission Authorisation (Part 4A FSMA)](https://protegra.io/licensing/licences/lending/united-kingdom-consumer/) | | ✓ |

## Frequently asked questions

### Are buy-now-pay-later providers covered under consumer credit regulations?

Yes, the revised Consumer Credit Directive (CCD2) brings deferred payment arrangements and buy-now-pay-later services into full regulatory scope. Providers must assess consumer creditworthiness, provide standardised fee disclosures and ensure transparent repayment terms.

### What happens if a lender fails to perform a creditworthiness assessment?

Under consumer credit legislation, lenders must evaluate the consumer's ability to repay before granting credit. Failure to perform adequate checks can result in supervisory sanctions, loan agreement unenforceability, or caps on interest charges under national enforcement statutes.

## Sources

1. [CCD2 Art. 2-3](https://eur-lex.europa.eu/eli/dir/2023/2225/oj): retrieved 2026-09-24

Last verified 2026-09-24 · Author: Danil Marmysh · Reviewed by Anastasia Sidorenkova · © Protegra. Data: CC BY 4.0, cite "Protegra Licensing Atlas". Not legal advice.