In Germany, from November 20, 2026, user protection for overdrafts, credit limits on current accounts, will be strengthened. For Ukrainians with accounts in foreign banks, this means more time to settle debts. The federal government of Germany reports on the reform.
Overdraft in Germany: how contract termination will change
Upon a regular termination of an open-ended overdraft agreement, the bank must adhere to a notice period of at least two months. This gives the client a chance to prepare for the loss of the credit limit. However, this rule should not be seen as a prohibition of any immediate credit limitation.
If a debt remains after the overdraft is terminated, the bank must offer repayment in twelve equal monthly installments before any forced collection actions. The agreed interest rate remains, and no additional charge for such installment payments is foreseen.
Thus, the installment does not write off the debt nor makes it interest-free. It allows the distribution of repayment over time. Just like during bank transfers in Germany, the specific conditions of the operation and the bank's notifications matter.
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Loans from November 20, 2026: checks will become stricter
The new protection will also extend to small loans of up to 200 euros, separate interest-free loans, and "buy now, pay later" services. For concluding regular consumer credit agreements, a text form, including an electronic document, will suffice.
At the same time, creditors will more carefully check creditworthiness. A loan should only be granted when its repayment is likely. Therefore, strengthening protection does not mean that obtaining a new limit will become easier: the bank may request additional information about income.
The reform also limits the ability to withdraw from a credit agreement due to errors in mandatory information to a period of 12 months and 14 days. The application of this limitation depends on what specific information the consumer received.
For existing overdrafts, transitional provisions are provided. Ukrainians, especially those with temporary protection in Germany, should check their bank's notifications: the date of the implementation of certain requirements may depend on the agreement.