Rent-to-own with a purchase option becomes consumer credit from 20 November

What changes in § 506 BGB on 20 November?

The act implementing the EU Consumer Credit Directive (Bundesgesetzblatt 2026 I No. 139 of 18 May 2026) rewrites § 506 of the German Civil Code (BGB). Contracts under which a business lets a consumer use an item will in future count as a financial accommodation as soon as the consumer has the right to acquire the item. Until now this required a purchase obligation, a right of the business to demand the purchase, or a residual value guarantee. At the same time the condition “for a fee” is dropped: interest-free payment deferrals also fall under the credit rules. The specialist portal paytechlaw pointed this out on 7 October in a dedicated podcast episode. How the new law affects instalments and “pay later” at checkout is covered in our report on the Verivox survey.

Which retailers with rental and subscription models are affected

Affected are retailers and platforms that rent electronics, bicycles, e-bikes, furniture, musical instruments or household appliances to private customers and allow them to take the item over at the end, for example through a purchase option or by crediting the instalments towards the purchase price. Pure B2B contracts are not affected, including a business’s terminal rental. A retailer’s own payment terms also remain exempt: if the retailer itself, without a third party, grants up to 50 days free of charge with only limited costs for late payment, this does not count as credit.

Why the purchase option becomes a credit question

Many shops built rental with a purchase option precisely because it worked without a credit check, without a credit agreement and without a withdrawal notice under credit law. The legislator is closing that shortcut. Anyone still advertising “rent instead of finance” will, from 20 November, legally be selling a financing product and must check creditworthiness, provide pre-contractual information and conclude the contract in the prescribed form.

From a payments perspective this is not just legal detail. A rental model that suddenly needs a credit check loses customers at checkout, exactly where it used to have its advantage. Retailers should therefore decide now whether to drop the purchase option, set the model up properly as financing, or leave the financing to a licensed partner. Contracts concluded before 20 November remain under the old law.

What retailers with rental models should check now

1. Review all consumer rental contracts for whether the customer may buy the item, either expressly or through instalments being credited.
2. Clarify with a lawyer whether the model will run as a financial accommodation from 20 November, and switch credit checks, information and contract form in good time.
3. Keep your own payment terms at no more than 50 days and free of charge if they are to stay outside credit law.