THE LEGAL REGULATION OF SHORT-TERM CONSUMER LOANS AND CREDITS GRANTED THROUGH DIGITAL PLATFORMS

This article discusses the issue of cross-border issuance of short-term high -cost loans within the European Union. While many countries, such as Croatia, limit the maximum allowable interest rates, particularly for consumer lending, the freedom of movement of services allows foreign financial service providers to operate in the domestic market. This often results in some foreign financial service providers not respecting local limitations, such as the maximum interest rate. This article presents the existing legal framework for consumer protection, interest rate restrictions, and equality of transactions in Croatia, as well as the planned reforms of European consumer credit law. Through an analysis of the existing practices for unlawful consumer lending in Croatia, the authors warn of significant ambiguities and expected problems in the reform of the Consumer Credit Directive 2021/0171/ COD at the European Union level.