The Ministry of Development is promoting a new legislative framework, which is currently under public consultation and aims to strengthen consumer protection through stricter rules, greater transparency in banking transactions, and the expansion of citizens’ rights. The draft law transposes four European directives, as well as additional national measures, without providing for retroactive application to existing contracts.
The new consumer credit regulations, which are expected to take effect on November 20, apply to unsecured loans of up to 100,000 euros and cover all consumer and home improvement loans, as well as credit cards. In this context, stricter transparency requirements are being established, with banks required to present all interest rates, fees, and potential risks, effectively eliminating vague or misleading contractual language. At the same time, consumers’ right of withdrawal is strengthened; they will be able to cancel the contract within 14 days at no cost and without having to provide a reason. For distance contracts, the law also provides for the option to communicate with a live person, so that customer service is not limited exclusively to automated systems, which is considered particularly important for older adults and vulnerable groups.
A central feature of the new framework is the introduction of mechanisms to limit over-indebtedness. A cap is set on the total annual effective interest rate (TAEIR), which will range from 30% to 50% of the average published quarterly by the Bank of Greece. In addition, a cap is established on the total repayment burden relative to the principal: up to 60% for loans with a term of up to 4 years, up to 70% for loans with a term of 4 to 8 years, and up to 75% for loans with a term of more than 8 years, excluding credit cards.
A particular social dimension is provided through the establishment of the so-called “right to be forgotten” for cancer survivors. Specifically, the use of medical data related to cancer is prohibited for the purpose of entering into insurance contracts linked to loans, provided that five years have elapsed since the completion of treatment, thereby ensuring equal access to banking products.
Finally, the legislative framework also extends to issues of the green transition and market functioning. Starting September 27, 2026, rules against misleading environmental claims (“greenwashing”), with clear definitions of concepts such as environmental claims and sustainability labels. At the same time, the “right to repair” is established, with an obligation to inform consumers about the option to repair products instead of replacing them, for specific categories such as household appliances, televisions, electronic devices, cell phones, computers, servers, data storage equipment, and other technological equipment.
