Background & Purpose
The credit market has changed rapidly, leading to concerns about rising debt levels among consumers. The new law is designed to modernize protections and align Swedish rules with EU standards.
The Decision
The Swedish parliament approved a new law that forces credit companies to be more careful when lending money and requires them to have proper permits and professional knowledge.
Does this affect you?
- Loan applicants: They will face stricter credit checks, which may make it harder to get approved for a loan if their financial situation is unstable.
- Credit companies: They must now apply for official permits and ensure their staff has the required professional competence to handle credit services.
In Practice
- Credit companies must perform more thorough checks to ensure customers can actually afford to pay back their loans.
- Companies offering or brokering loans must now have a formal permit and prove they have the right knowledge to operate.
- Rules regarding how loans are marketed and how much interest can be charged are being tightened.
- Consumers get clearer information and stronger rights when taking out a loan.