Germany: Mortgage Credit Directive Implementation Act

On 21 March 2016 the German Mortgage Credit Directive Implementation Act entered into force. The act is based on the EU Mortgage Credit Directive (2014/17/EU) relating to consumer credits for residential immovable property. Amongst others, the Act introduces a new withdraw period of twelve month and two weeks from conclusion of the loan agreement in case of incorrect information on the right to cancel the agreement. Further the Mortgage Credit Directive Implementation Act regulates that in case the consumer utilizes its bank account overdraft for a continuous period of more than six month by an average of 75% the lender is obliged to consult the consumer on more in-expensive alternative solutions.