Order on Good Conduct for Consumer Loan Businesses

Order on Good Conduct for Consumer Loan Businesses 1)

Pursuant to Section 7, paragraph 2, and Section 30, paragraph 8, of the Act on Consumer Loan Businesses and Registration of Credit Intermediaries, cf. Act Consolidation No. 115 of 2 February 2025, it is hereby stipulated:

Chapter 1 Scope and Definitions

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

Section 2. In this Order and pursuant to Section 2, nos. 1, 4 and 9, of the Act on Marketing, the following terms are understood as:

1. Consumer: A natural or legal person who, in connection with transactions covered by the Act on Consumer Loan Businesses, primarily acts outside their trade or profession.

2. Commercial Practice: Any act, omission, conduct, representation or commercial communication, including advertising and marketing, carried out by a trader directly connected with the promotion, sale or provision of a product to consumers.

3. Good Commercial Practice: The standard of special skill and care which a trader may reasonably be expected to exercise towards consumers, which is commensurate with honest market practice and/or the general principle of good faith in the trader's field of activity. The concept covers the same ground as the concept of 'professional diligence' used in Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005 concerning unfair business-to-consumer commercial practices in the internal market.

Chapter 2 General Provisions on Good Conduct

Section 3. A consumer loan business shall act fairly and loyally towards its customers, cf. however paragraph 2.

Paragraph 2. If the commercial practice in question affects the consumer's economic interests, Chapter 3 applies instead of paragraph 1. If the commercial practice in question also contravenes considerations not intended to safeguard the consumers' economic interests, including considerations of taste and decency, safety and health or other considerations, or if the commercial practice in question is regulated by contract law, paragraph 1 applies in addition to Chapter 3.

Chapter 3 Commercial Practices Towards Consumers

Good Commercial Practice

Section 4. A consumer loan business shall exercise good commercial practice in its commercial practices towards consumers.

Significant Distortion of Economic Behaviour

Section 5. It is a condition for acting in breach of Section 4 that the commercial practice in question significantly distorts or is likely to significantly distort the economic behaviour of the average consumer or, if the commercial practice in question is directed at a particular group of consumers, of the average member of that group.

Paragraph 2. A commercial practice which the consumer loan business may reasonably be presumed to distort significantly only the economic behaviour of a clearly identifiable group of consumers who are particularly vulnerable to the practice or the product in question, including because of their mental or physical infirmity, age or credulity, shall be assessed with reference to the average member of that group.

Chapter 4 Conclusion and Amendment of Credit Agreements

Section 6. If a consumer loan business terminates an agreement entered into with a customer, the termination must be objectively justified and made in paper or on another durable medium.

Chapter 5 Supervisory and Penal Provisions

Section 7. The Financial Supervisory Authority may issue orders to correct matters that are in breach of the provisions of this Order.

1. The Order contains provisions implementing Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005 concerning unfair business-to-consumer commercial practices in the internal market and amending Council Directive 84/450/EEC, Directives 97/7/EC, 98/27/EC and 2002/65/EC of the European Parliament and of the Council and Regulation (EC) No 2006/2004 of the European Parliament and of the Council, OJ 2005, No L 149, p. 22.

Danish Government Gazette A 2025 Published on 28 November 2025 27 November 2025. No. 1380. Ministry of Industry, Business and Financial Affairs, Financial Supervisory Authority, ref. no. 25-007498 CQ003426

Section 8. Anyone who fails to comply with an order under Section 7 shall be liable to a fine.

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

Chapter 6 Entry into Force

Section 9. This Order enters into force on 20 November 2026.

Paragraph 2. Order No. 1035 of 10 October 2019 on Good Conduct for Consumer Loan Businesses is repealed.

Ministry of Industry, Business and Financial Affairs, 27 November 2025 Morten Bødskov / Hans Høj 27 November 2025. 2 No. 1380.