The Swedish Ministry of Finance proposes to repeal the Certain Consumer Credit-related Operations Act
Yesterday, on May 7, a memorandum was published by the Swedish Ministry of Finance proposing to repeal the Certain Consumer Credit-related Operations Act (2014:275)(Sw: Lag (2014:275) om viss verksamhet med konsumentkrediter).
The proposal, if adopted, would have a significant impact on the 64 consumer credit companies currently operating under a consumer credit license as they would no longer be permitted to grant or intermediate consumer credits.
To continue their operations, the consumer credit companies would need to apply for either a banking or a credit market company license subjecting them to significantly stricter regulatory and prudential regimes.
The regulatory changes are proposed to come into effect on July 1, 2025. Companies holding a consumer credit license before the effective date are allowed continue their activities until the end of July 2026. Companies that have applied for a banking or credit market company license before the end of July 2026 are allowed to continue their operations until the license application has been finally processed.
For more reading click here (the document is in Swedish)
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