Document background
The Consumer Credit Agreement is a fundamental document used in German banking and financial services for extending credit to individual consumers. It serves as the primary contractual framework between credit institutions and borrowers, incorporating all mandatory requirements under German banking law, the Civil Code (BGB), and EU directives. This document is essential when any financial institution provides personal loans, installment credits, or similar financial products to consumers in Germany. It must include specific mandatory information such as APR calculations, withdrawal rights, and comprehensive cost transparency, as required by German consumer protection laws. The agreement is designed to ensure full compliance with regulatory requirements while protecting both the lender's interests and consumer rights.
