Regulatory Alerts2025-12-04
Act on Consumer Loan Businesses
The Danish Financial Supervisory Authority (Finanstilsynet) issues this regulation to govern consumer loan businesses, requiring licenses, strict suitability criteria for management, and adherence to fair business practices. The Act imposes a 35% APR cap on consumer credit, prohibits additional costs after 100% of the principal is paid, and mandates target group identification and creditworthiness assessments. It also establishes whistleblower protection mechanisms and grants the regulator broad powers for supervision, information gathering, and enforcement.
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