Legal interest rate restrictions have been a controversial issue among economists for centuries. In practice, several countries have imposed different rules on interest rate ceilings as well as the cost of credit. As the member states of the European Union have heterogeneous legislation on this issue, the European Commission has requested this study, which the ZEW is carrying out jointly with iff (institut für finanzdienstleistungen). The ongoing study will provide a profound overview of the institutional arrangements with respect to interest rate restrictions in credit markets within the EU and will discuss their economic, financial and social impact. The ZEW is in charge with the economic aspects of the research question, whereas iff is focusing on the legal and institutional arrangements.