German Federal Ministry of Justice Enforces Stricter Consumer Protections for Digital Buy-Now-Pay-Later Micro-Loans
The German federal government is advancing comprehensive regulatory measures to shield consumers from excessive debt accumulation associated with short-term online micro-loans and digital installment purchasing products. Under the new compliance framework, fintech lenders and digital payment providers will be legally mandated to conduct rigorous affordability assessments to curb mounting private indebtedness in e-commerce markets.