Stronger consumer protection in the credit market
Published:
Consumer protection in the credit market will be strengthened. The Riksdag voted in favour of the Government’s proposal which is designed to counter over-indebtedness among Swedish households.
The market for consumer credits has grown rapidly in recent years. According to the Government and the Riksdag, payday loans, which are granted by consumer credit institutions, have contributed to over-indebtedness. It is primarily young people on low incomes that take payday loans.
According to the decision, it will no longer be possible to conduct activities as a consumer credit institution. Instead, consumer credits may only be granted by banks.
The new rules will come into force on 1 July 2025.