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2019-10-11

Order on Reporting Information to the Danish Financial Supervisory Authority Regarding Consumer Loan Businesses' Credit Agreements

The Danish Financial Supervisory Authority issued this order to mandate annual reporting by licensed consumer loan businesses regarding their outstanding credit agreements and creditworthiness assessments. The regulation requires companies to submit detailed data on credit terms, consumer demographics, default instances, and debt sales by March 1 each year. Failure to comply with these reporting obligations is subject to fines and potential criminal liability for legal entities.

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Order on Reporting Information to the Danish Financial Supervisory Authority Regarding Consumer Loan Businesses' Credit Agreements

Pursuant to Section 6, Paragraph 2, and Section 30, Paragraph 7, of Act No. 450 of 24 April 2019 on Consumer Loan Businesses, the following is prescribed:

Chapter 1 Scope of Application

Section 1. This Order applies to consumer loan businesses that have permission to conduct business, pursuant to Section 3 of the Act on Consumer Loan Businesses.

Chapter 2 Reporting of Information

Section 2. A consumer loan business must, no later than 1 March each year, report the following information for every credit agreement entered into with a consumer that has not been settled:

  1. The date of entry into the credit agreement.
  2. The size of the total credit amount.
  3. The term of the credit agreement.
  4. Annual Percentage Rate of Charge (APRC).
  5. The consumer's age at the time of entry into the credit agreement.
  6. The date of any initial default of the credit agreement, if the due date has been exceeded by more than 90 days.
  7. The total size of any arrears.

Paragraph 2. A consumer loan business must, no later than 1 March each year, inform the Danish Financial Supervisory Authority of the number of applications for credit agreements that the business has rejected in the preceding calendar year because it assessed that the customer was not creditworthy, pursuant to Section 7(c) of the Act on Credit Agreements or Section 9 of the Act on Consumer Loan Businesses.

Paragraph 3. A consumer loan business must, no later than 1 March each year, inform the Danish Financial Supervisory Authority of how many of the entered credit agreements have been transferred to others, including information on the highest and lowest price and the average price in connection with the transfer of the credit agreements.

Chapter 3 Penal Provisions

Section 3. Violation of Section 2 is punishable by fine, unless a heavier penalty is incurred under other legislation.

Paragraph 2. Companies and other legal persons may be subject to criminal liability pursuant to the rules in Chapter 5 of the Penal Code.

Chapter 4 Entry into Force

Section 4. This Order enters into force on 1 November 2019.

Paragraph 2. A consumer loan business's reporting of information, pursuant to Section 2, Paragraph 2, for 2019 shall be for the period 1 November 2019 to 31 December 2019.

Danish Financial Supervisory Authority, 11 October 2019 JESPER BERG / Henrik Bruun Johannessen

Official Gazette A 2019 Published on 12 October 2019 11 October 2019. No. 1037. Ministry of Industry, Business and Financial Affairs, Danish Financial Supervisory Authority, file no. 1911-0044 CQ000990

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