SWEDEN Law and Practice Contributed by: Robert Karlsson, Helena Rönqvist, Caroline Landerfors and Vilma Slättegård, Magnusson Law
A company that intends to provide credits to businesses must only be registered with the SFSA, while a company that intends to provide or intermediate loans to consumers must be authorised by the SFSA. Consumer Loans Up until 2025, the provision or intermediation of consumer credits required authorisation accord - ing to the CCOA or the SBFBA. However, the Department of Finance issued a memorandum in May 2024 proposing that the CCOA shall be repealed from 1 July 2025 (subject to certain transitional provisions). If the proposal enters into force, the provision and intermediation of consumer credits will require authorisation as a credit institute under the SBFBA. Consumer lending is subject to the consumer protection provisions in the Consumer Credits Act (CCA). The CCA implements, inter alia, the EU directive on credit agreement for consumers. The rules include requirements for the provision of infor - mation prior to the conclusion of credit agree - ments, marketing information, credit assess - ment, documentation of credit agreements, interest and fees, the consumer’s right of with - drawal etc. High-Cost Credits The CCA also includes rules on high-cost cred - its. These rules do not stem from the Consumer Credit Directive but rather from national Swedish legislation. The rules were introduced as a reac - tion to issues relating to increasing indebtedness among consumers a result of so-called instant loans. These loans are easily accessible and can be taken out through, for instance, short mes - sage service (SMS); therefore, they have histori -
cally been marketed toward financially vulner - able consumers. When marketing high-cost credits, the credi - tor must separately disclose that the market - ing relates to such credits. The creditor must also provide information on the risks relating to indebtedness and where the consumer may seek support with budget and debt-related mat - ters. The government, in a government bill issued in September 2024, proposed that some of the stricter requirements that apply to high-cost credits (eg, the interest rate cap and the cost cap) shall apply to all consumer credits. The changes are proposed to enter into force on 1 March 2025 (subject to certain transitional provi - sions). Consumer Mortgages The provision or intermediation of mortgages to consumers require authorisation in accordance with either the SBFBA or the MBA. These Acts, and the CCA, contain consumer protection pro - visions that apply to consumer mortgages. 4.2 Underwriting Processes Loan origination is regulated by the SBFBA and the CCA, and by regulations and guidelines issued by the SFSA and the Swedish Consumer Agency. Loans to consumers must be preceded by a creditworthiness assessment to ensure that the consumer has the ability to repay the loan. The CCA and the SFSA’s general guidelines regard - ing consumer credits contain extensive consum - er protection provisions, including the require - ment for good lending practices and detailed provisions for creditworthiness assessments.
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