Rodrigo Formigal highlights that new credit rules will “significantly change” the market
The new consumer credit rules include an extension of the scope of loans, covering “buy now, pay later” (BNPL) solutions as well as low-value credit.
According to Rodrigo Formigal, speaking to Jornal de Negócios, “for BNPL it will be a major revolution”, requiring substantial changes to the processes of providers and potentially opening the door to the growth of deferred payment solutions.
The new European directive will require these solutions to comply with stricter rules on information, advertising, the right of withdrawal and creditworthiness assessment, coming into force by November 2026 following transposition into Portuguese law. The measure aims to respond to the widespread use of these products and the risks of over-indebtedness.
The directive will also extend to very low-value credit, below €200, and strengthens the 14-day right of withdrawal, with extended (or no) time limits where the mandatory information has not been provided. “It will significantly change the landscape, because consumers will no longer be able simply to take out credit without proper information”, says the co-coordinator of the Finance Law practice area at Abreu Advogados.
